Contrasting Coca Cola FEMSA (NYSE:KOF) and Embotelladora Andina (NYSE:AKO.B)

Coca Cola FEMSA (NYSE:KOF) and Embotelladora Andina (NYSE:AKO.B) are both consumer staples companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, dividends, risk, institutional ownership, valuation, earnings and analyst recommendations.

Risk & Volatility

Coca Cola FEMSA has a beta of 0.54, indicating that its share price is 46% less volatile than the S&P 500. Comparatively, Embotelladora Andina has a beta of 0.63, indicating that its share price is 37% less volatile than the S&P 500.

Insider & Institutional Ownership

1.6% of Embotelladora Andina shares are owned by institutional investors. 1.0% of Coca Cola FEMSA shares are owned by company insiders. Comparatively, 0.0% of Embotelladora Andina shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current recommendations for Coca Cola FEMSA and Embotelladora Andina, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Coca Cola FEMSA	0	6	4	0	2.40
Embotelladora Andina	0	1	0	0	2.00

Coca Cola FEMSA currently has a consensus target price of $121.43, indicating a potential upside of 2.41%. Given Coca Cola FEMSA’s stronger consensus rating and higher probable upside, analysts plainly believe Coca Cola FEMSA is more favorable than Embotelladora Andina.

Dividends

Coca Cola FEMSA pays an annual dividend of $3.76 per share and has a dividend yield of 3.2%. Embotelladora Andina pays an annual dividend of $0.97 per share and has a dividend yield of 3.3%. Coca Cola FEMSA pays out 57.4% of its earnings in the form of a dividend. Embotelladora Andina pays out 46.4% 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. Embotelladora Andina is clearly the better dividend stock, given its higher yield and lower payout ratio.

Valuation and Earnings

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	$15.22 billion	13.10	$1.32 billion	$6.55	18.10
Embotelladora Andina	$3.52 billion	1.32	$295.57 million	$2.09	14.07

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

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	7.95%	15.76%	7.27%
Embotelladora Andina	8.34%	22.29%	8.43%

Summary

Coca Cola FEMSA beats Embotelladora Andina on 9 of the 16 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 in Mexico, Guatemala, Nicaragua, Costa Rica, Panama, Colombia, Brazil, Argentina, and Uruguay. The company offers sparkling beverages, including colas and flavored sparkling beverages; waters; other non-carbonated beverages comprising juice drinks, coffee, teas, milk, value-added dairy products, sports and energy drinks, and plant-based drinks; and alcoholic beverages, such as hard seltzer under the Topo Chico brand name. It also distributes and sells Heineken, Estrella Galicia, Therezópolis, and Campari beer products, as well as Perfetti confectionary and chewing gum in its Brazilian territories; and Monster products. The company sells its products to distributors, retail outlets, wholesale supermarkets, discount and convenience stores, retailers, points-of-sale outlets, restaurants, bars, stadiums, auditoriums, theaters, and home deliveries. Coca-Cola FEMSA, S.A.B. de C.V. was founded in 1979 and is headquartered in Mexico City, Mexico.

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.