Comparing Embotelladora Andina (NYSE:AKO.A) and Coca-Cola FEMSA (OTCMKTS:COCSF)

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Coca-Cola FEMSA	N/A	N/A	N/A	$11.57	1.00
Embotelladora Andina	$3.52 billion	1.07	$295.57 million	$2.05	11.60

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

Dividends

Coca-Cola FEMSA pays an annual dividend of $2.90 per share and has a dividend yield of 25.0%. Embotelladora Andina pays an annual dividend of $0.89 per share and has a dividend yield of 3.7%. Coca-Cola FEMSA pays out 25.1% of its earnings in the form of a dividend. Embotelladora Andina pays out 43.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Coca-Cola FEMSA is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares Coca-Cola FEMSA and Embotelladora Andina’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Coca-Cola FEMSA	N/A	N/A	N/A
Embotelladora Andina	8.46%	23.40%	8.70%

Insider and Institutional Ownership

2.8% of Coca-Cola FEMSA shares are held by institutional investors. Comparatively, 0.1% of Embotelladora Andina shares are held by institutional investors. 0.0% of Embotelladora Andina shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Embotelladora Andina beats Coca-Cola FEMSA on 6 of the 10 factors compared between the two stocks.

About Coca-Cola FEMSA

Coca-Cola FEMSA, S.A.B. de C.V., a franchise bottler, produces, markets, sells, and distributes Coca-Cola trademark beverages. The company offers sparkling beverages, including colas and flavored sparkling beverages; and waters and other beverages, such as juice drinks, coffee, teas, milk, value-added dairy products, sports and energy drinks, alcoholic beverages, and plant-based drinks. It provides a portfolio of products through retail outlets, wholesale supermarkets, retailers, points-of-sale outlets, and home delivery. In addition, the company distributes and sells Heineken, Estrella Galicia, and Therezópolis beer products in its Brazilian territories. It operates in Mexico, Guatemala, Nicaragua, Costa Rica, Panama, Colombia, Brazil, Argentina, and Uruguay. The company was founded in 1979 and is headquartered in Mexico City, Mexico. Coca-Cola FEMSA, S.A.B. de C.V. is a subsidiary of Fomento Economico Mexicano, S.A.B. de C.V.

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.