Head-To-Head Analysis: Coca Cola Femsa (NYSE:KOF) and Keurig Dr Pepper (NASDAQ:KDP)

Coca Cola Femsa (NYSE:KOF) and Keurig Dr Pepper (NASDAQ:KDP) are both large-cap consumer staples companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, valuation, earnings, analyst recommendations, dividends, institutional ownership and risk.

Profitability

This table compares Coca Cola Femsa and Keurig Dr Pepper’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Coca Cola Femsa	8.13%	15.79%	7.63%
Keurig Dr Pepper	9.78%	11.19%	5.13%

Dividends

Coca Cola Femsa pays an annual dividend of $3.60 per share and has a dividend yield of 4.1%. Keurig Dr Pepper pays an annual dividend of $0.92 per share and has a dividend yield of 3.2%. Coca Cola Femsa pays out 62.7% of its earnings in the form of a dividend. Keurig Dr Pepper pays out 79.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Keurig Dr Pepper has increased its dividend for 4 consecutive years. Coca Cola Femsa is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Ratings

This is a summary of recent ratings for Coca Cola Femsa and Keurig Dr Pepper, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Coca Cola Femsa	1	2	3	0	2.33
Keurig Dr Pepper	2	7	10	0	2.42

Coca Cola Femsa presently has a consensus price target of $106.00, suggesting a potential upside of 21.90%. Keurig Dr Pepper has a consensus price target of $35.27, suggesting a potential upside of 22.24%. Given Keurig Dr Pepper’s stronger consensus rating and higher possible upside, analysts clearly believe Keurig Dr Pepper is more favorable than Coca Cola Femsa.

Valuation & Earnings

This table compares Coca Cola Femsa and Keurig Dr Pepper”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Coca Cola Femsa	$15.35 billion	9.52	$1.14 billion	$5.74	15.15
Keurig Dr Pepper	$15.76 billion	2.49	$1.44 billion	$1.16	24.87

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

Institutional and Insider Ownership

94.0% of Keurig Dr Pepper shares are owned by institutional investors. 1.0% of Coca Cola Femsa shares are owned by insiders. Comparatively, 1.0% of Keurig Dr Pepper shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Volatility and Risk

Coca Cola Femsa has a beta of 0.62, meaning that its stock price is 38% less volatile than the S&P 500. Comparatively, Keurig Dr Pepper has a beta of 0.43, meaning that its stock price is 57% less volatile than the S&P 500.

Summary

Keurig Dr Pepper beats Coca Cola Femsa 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 Keurig Dr Pepper

Keurig Dr Pepper Inc. owns, manufactures, and distributors beverages and single serve brewing systems in the United States and internationally. It operates through three segments: U.S. Refreshment Beverages, U.S. Coffee, and International. The U.S. Refreshment Beverages segment manufactures and distributes branded concentrates, syrup, and finished beverages. Its U.S. Coffee segment offers finished goods relating to K-Cup pods, single serve brewers, specialty coffee, and ready to drink coffee products through Keurig.com website. The International segment provides sales in Canada, Mexico, the Caribbean, and other international markets from the manufacture and distribution of branded concentrates, syrup, and finished beverages; and sales in Canada from the manufacture and distribution of finished goods relating to the Company's single serve brewers, KCup pods, and other coffee products. It serves retailers, third-party bottlers and distributors, retail partners, hotel chains, office coffee distributors, and end-use consumers. The company offers its products under the Dr Pepper, Canada Dry, Green Mountain Coffee Roasters, Snapple, Mott's, The Original Donut Shop, Clamato, and Core Hydration brand name. Keurig Dr Pepper Inc. was founded in 1981 and is headquartered in Burlington, Massachusetts.