Critical Analysis: Westrock Coffee (NASDAQ:WEST) versus Embotelladora Andina (NYSE:AKO.B)

Westrock Coffee (NASDAQ:WEST) and Embotelladora Andina (NYSE:AKO.B) are both consumer staples companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, risk, dividends, profitability, institutional ownership and valuation.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Westrock Coffee and Embotelladora Andina, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Westrock Coffee	2	0	3	0	2.20
Embotelladora Andina	0	1	0	1	3.00

Westrock Coffee currently has a consensus price target of $7.00, suggesting a potential upside of 34.49%. Given Westrock Coffee’s higher possible upside, analysts plainly believe Westrock Coffee is more favorable than Embotelladora Andina.

Volatility & Risk

Westrock Coffee has a beta of 0.49, meaning that its share price is 51% less volatile than the S&P 500. Comparatively, Embotelladora Andina has a beta of 0.53, meaning that its share price is 47% less volatile than the S&P 500.

Earnings and Valuation

This table compares Westrock Coffee and Embotelladora Andina”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Westrock Coffee	$1.19 billion	0.42	-$90.44 million	($0.95)	-5.48
Embotelladora Andina	$3.52 billion	1.35	$295.57 million	$1.53	19.64

Embotelladora Andina has higher revenue and earnings than Westrock Coffee. Westrock Coffee is trading at a lower price-to-earnings ratio than Embotelladora Andina, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Westrock Coffee and Embotelladora Andina’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Westrock Coffee	-7.61%	-233.53%	-4.98%
Embotelladora Andina	8.16%	24.42%	8.53%

Institutional & Insider Ownership

45.1% of Westrock Coffee shares are held by institutional investors. Comparatively, 1.6% of Embotelladora Andina shares are held by institutional investors. 27.7% of Westrock Coffee shares are held by insiders. Comparatively, 0.0% of Embotelladora Andina shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Embotelladora Andina beats Westrock Coffee on 11 of the 15 factors compared between the two stocks.

About Westrock Coffee

Westrock Coffee Company, LLC operates as an integrated coffee, tea, flavors, extracts, and ingredients solutions provider in the United States and internationally. It operates through two segments, Beverage Solutions, and Sustainable Sourcing & Traceability (SS&T). The Beverage Solutions segment provides various packaging, including branded and private label coffee in bags, fractional packs, and single serve cups, as well as extract solutions for applications in cold brew and ready-to-drink offerings. The SS&T segment engages in delivery and settlement of forward sales contracts for green coffee. The company offers coffee sourcing, supply chain management, product development, roasting, packaging, and distribution services to the retail, food service and restaurant, convenience store and travel center, non-commercial account, CPG, and hospitality industries. Westrock Coffee Company, LLC was founded in 2009 and is headquartered in Little Rock, Arkansas.

About Embotelladora Andina

Embotelladora Andina S.A., together with its subsidiaries, produces, markets, and distributes Coca-Cola soft drinks in Chile, Brazil, Argentina, and Paraguay. It also offers fruit-flavored beverages, juices, sports and energy drinks, ice tea, and bottled water. Embotelladora Andina S.A. was founded in 1946 and is headquartered in Santiago, Chile.