Head to Head Review: Coca-Cola Bottling Co. Consolidated (COKE) and Dr Pepper Snapple Group (NYSE:DPS)
Coca-Cola Bottling Co. Consolidated (NASDAQ: COKE) and Dr Pepper Snapple Group (NYSE:DPS) are both mid-cap consumer staples companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, earnings, analyst recommendations, valuation and profitabiliy.
This is a summary of recent ratings and recommmendations for Coca-Cola Bottling Co. Consolidated and Dr Pepper Snapple Group, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Coca-Cola Bottling Co. Consolidated||0||0||0||0||N/A|
|Dr Pepper Snapple Group||1||9||5||0||2.27|
Dr Pepper Snapple Group has a consensus price target of $98.17, indicating a potential upside of 7.43%. Given Dr Pepper Snapple Group’s higher possible upside, analysts plainly believe Dr Pepper Snapple Group is more favorable than Coca-Cola Bottling Co. Consolidated.
Coca-Cola Bottling Co. Consolidated pays an annual dividend of $1.00 per share and has a dividend yield of 0.4%. Dr Pepper Snapple Group pays an annual dividend of $2.32 per share and has a dividend yield of 2.5%. Coca-Cola Bottling Co. Consolidated pays out 16.9% of its earnings in the form of a dividend. Dr Pepper Snapple Group pays out 51.1% 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 Bottling Co. Consolidated has raised its dividend for 7 consecutive years.
This table compares Coca-Cola Bottling Co. Consolidated and Dr Pepper Snapple Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Coca-Cola Bottling Co. Consolidated||1.62%||14.95%||2.19%|
|Dr Pepper Snapple Group||13.03%||38.52%||8.98%|
Volatility and Risk
Coca-Cola Bottling Co. Consolidated has a beta of 0.03, suggesting that its stock price is 97% less volatile than the S&P 500. Comparatively, Dr Pepper Snapple Group has a beta of 0.6, suggesting that its stock price is 40% less volatile than the S&P 500.
Earnings & Valuation
This table compares Coca-Cola Bottling Co. Consolidated and Dr Pepper Snapple Group’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Coca-Cola Bottling Co. Consolidated||$3.40 billion||0.66||$245.38 million||$5.90||40.82|
|Dr Pepper Snapple Group||$6.46 billion||2.60||$1.61 billion||$4.54||20.13|
Dr Pepper Snapple Group has higher revenue and earnings than Coca-Cola Bottling Co. Consolidated. Dr Pepper Snapple Group is trading at a lower price-to-earnings ratio than Coca-Cola Bottling Co. Consolidated, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
38.6% of Coca-Cola Bottling Co. Consolidated shares are owned by institutional investors. Comparatively, 90.0% of Dr Pepper Snapple Group shares are owned by institutional investors. 0.0% of Coca-Cola Bottling Co. Consolidated shares are owned by insiders. Comparatively, 0.6% of Dr Pepper Snapple Group shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Dr Pepper Snapple Group beats Coca-Cola Bottling Co. Consolidated on 12 of the 16 factors compared between the two stocks.
About Coca-Cola Bottling Co. Consolidated
Coca-Cola Bottling Co. Consolidated produces, markets and distributes nonalcoholic beverages. The Company is an independent Coca-Cola bottler in the United States. The Company’s segments include Nonalcoholic Beverages and All Other. Majority of its total bottle/can volume to retail customers consist of products of The Coca-Cola Company. It also distributes products for various other beverage brands, including Dr Pepper, Sundrop and Monster Energy. The Company’s product offerings include both sparkling and still beverages. Sparkling beverages are carbonated beverages and the Company’s principal sparkling beverage is Coca-Cola. Still beverages include energy products and noncarbonated beverages, such as bottled water, tea, ready to drink coffee, enhanced water, juices and sports drinks. There are two main categories of sales, which include bottle/can sales and other sales.
About Dr Pepper Snapple Group
Dr Pepper Snapple Group, Inc. is an integrated brand owner, manufacturer and distributor of non-alcoholic beverages in the United States, Mexico and Canada. The Company offers a diverse portfolio of flavored (non-cola) carbonated soft drinks (CSDs) and non-carbonated beverages (NCBs), including ready-to-drink teas, juices, juice drinks, water and mixers. The Company’s segments include Beverage Concentrates, Packaged Beverages and Latin America Beverages. The Company’s brand portfolio includes CSD brands, such as Dr Pepper, Canada Dry, Penafiel, Squirt, 7UP, Crush, A&W, Sunkist soda and Schweppes, and NCB brands, such as Snapple, Hawaiian Punch, Mott’s and Clamato. The Company’s NCB brands include Snapple, Hawaiian Punch, Mott’s, FIJI mineral water, Clamato, Yoo-Hoo, Deja Blue, Bai Brands, ReaLemon, AriZona tea, Vita Coco coconut water, Mr and Mrs T mixers, BodyArmor, Nantucket Nectars, Garden Cocktail, Mistic and Rose’s.
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