Critical Contrast: Coca-Cola Company (The) (KO) versus Embotelladora Andina (AKO.B)

Embotelladora Andina (NYSE: AKO.B) and Coca-Cola Company (The) (NYSE:KO) are both consumer staples companies, but which is the better investment? We will contrast the two companies based on the strength of their profitabiliy, dividends, institutional ownership, earnings, risk, analyst recommendations and valuation.

Dividends

Embotelladora Andina pays an annual dividend of $0.63 per share. Coca-Cola Company (The) pays an annual dividend of $1.48 per share and has a dividend yield of 3.3%. Embotelladora Andina pays out 64.9% of its earnings in the form of a dividend. Coca-Cola Company (The) pays out 103.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Embotelladora Andina has increased its dividend for 54 consecutive years.

Volatility and Risk

Embotelladora Andina has a beta of 0.08, meaning that its stock price is 92% less volatile than the S&P 500. Comparatively, Coca-Cola Company (The) has a beta of 0.7, meaning that its stock price is 30% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and target prices for Embotelladora Andina and Coca-Cola Company (The), as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Embotelladora Andina 0 0 1 0 3.00
Coca-Cola Company (The) 2 13 7 0 2.23

Coca-Cola Company (The) has a consensus target price of $44.56, suggesting a potential downside of 1.81%.

Institutional and Insider Ownership

8.9% of Embotelladora Andina shares are held by institutional investors. Comparatively, 64.6% of Coca-Cola Company (The) shares are held by institutional investors. 1.5% of Coca-Cola Company (The) shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Embotelladora Andina and Coca-Cola Company (The)’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Embotelladora Andina N/A N/A N/A $0.97 N/A
Coca-Cola Company (The) $40.70 billion 4.76 $11.24 billion $1.43 31.73

Coca-Cola Company (The) has higher revenue and earnings than Embotelladora Andina. Embotelladora Andina is trading at a lower price-to-earnings ratio than Coca-Cola Company (The), indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Embotelladora Andina and Coca-Cola Company (The)’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Embotelladora Andina 5.54% 12.39% 4.88%
Coca-Cola Company (The) 15.30% 33.17% 8.99%

Summary

Coca-Cola Company (The) beats Embotelladora Andina on 10 of the 14 factors compared between the two stocks.

Embotelladora Andina Company Profile

Embotelladora Andina S.A. (Andina) is a bottler of Coca-Cola trademark beverages in Latin America. The Company operates in four segments: Chile, Brazil, Argentina and Paraguay. It produces and distributes fruit juices, other fruit-flavored beverages and mineral and purified water in Chile, Argentina and Paraguay under trademarks owned by The Coca-Cola Company. The Company produces, markets and distributes the Coca-Cola trademark beverages and brands licensed from third-parties throughout its franchise territories. It manufactures polyethylene terephthalate (PET) bottles primarily for its own use in the packaging of Coca-Cola soft drinks in Chile and Argentina. In Brazil, it produces tea and juices for Leao Alimentos e Industria Ltda. It also distributes non-carbonated beverages in Brazil, such as tea, fruit juices, energy drinks, sport drinks and waters. It distributes beer in Brazil under the brands Amstel, Bavaria, Birra Moretti, Dos Equis (XX), Edelweiss, Heineken and Kaiser.

Coca-Cola Company (The) Company Profile

The Coca-Cola Company is a beverage company. The Company owns or licenses and markets non-alcoholic beverage brands, primarily sparkling beverages and a range of still beverages, such as waters, flavored waters and enhanced waters, juices and juice drinks, ready-to-drink teas and coffees, sports drinks, dairy and energy drinks. The Company’s segments include Europe, Middle East and Africa; Latin America; North America; Asia Pacific; Bottling Investments, and Corporate. The Company owns and markets a range of non-alcoholic sparkling beverage brands, including Coca-Cola, Diet Coke, Fanta and Sprite. The Company owns or licenses and markets over 500 non-alcoholic beverage brands. The Company markets, manufactures and sells beverage concentrates, which are referred to as beverage bases, and syrups, including fountain syrups, and finished sparkling and still beverages.

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