Analyzing Embotelladora Andina (NYSE:AKO.B) and Boston Beer (NYSE:SAM)

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

Institutional and Insider Ownership

1.6% of Embotelladora Andina shares are owned by institutional investors. Comparatively, 81.1% of Boston Beer shares are owned by institutional investors. 0.0% of Embotelladora Andina shares are owned by company insiders. Comparatively, 27.4% of Boston Beer shares are owned 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.

Analyst Ratings

This is a summary of current ratings and recommmendations for Embotelladora Andina and Boston Beer, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Embotelladora Andina	0	1	0	1	3.00
Boston Beer	3	8	1	0	1.83

Boston Beer has a consensus price target of $206.91, suggesting a potential upside of 11.44%. Given Boston Beer’s higher possible upside, analysts plainly believe Boston Beer is more favorable than Embotelladora Andina.

Valuation and Earnings

This table compares Embotelladora Andina and Boston Beer”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Embotelladora Andina	$3.52 billion	1.37	$295.57 million	$2.05	14.90
Boston Beer	$2.09 billion	0.93	$108.47 million	($6.79)	-27.34

Embotelladora Andina has higher revenue and earnings than Boston Beer. Boston Beer 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 Embotelladora Andina and Boston Beer’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Embotelladora Andina	8.46%	23.40%	8.70%
Boston Beer	-3.42%	9.99%	6.48%

Risk & Volatility

Embotelladora Andina has a beta of 0.63, meaning that its share price is 37% less volatile than the S&P 500. Comparatively, Boston Beer has a beta of 0.8, meaning that its share price is 20% less volatile than the S&P 500.

Summary

Embotelladora Andina beats Boston Beer on 10 of the 15 factors compared between the two stocks.

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.

About Boston Beer

The Boston Beer Company, Inc produces and sells alcohol beverages primarily in the United States. The company's flagship beer is Samuel Adams Boston Lager. It offers various beers, hard ciders, flavored malt beverages, and hard seltzers under the Samuel Adams, Twisted Tea, Truly, Angry Orchard, Dogfish Head, Angel City, and Coney Island brand names. The company markets and sells its products to a network wholesaler in the United States, as well as wholesalers, importers, or other agencies that in turn sell to retailers, such as grocery stores, club stores, convenience stores, liquor stores, bars, restaurants, stadiums, and other e-commerce retail outlets. It sells its products in Canada, Europe, Israel, Australia, New Zealand, the Caribbean, the Pacific Rim, Mexico, and Central and South America. The Boston Beer Company, Inc. was founded in 1984 and is based in Boston, Massachusetts.