Embotelladora Andina (AKO.B) versus Dr Pepper Snapple Group (DPS) Head to Head Review
Embotelladora Andina (NYSE: AKO.B) and Dr Pepper Snapple Group (NYSE:DPS) are both mid-cap consumer staples companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, earnings, risk, institutional ownership, profitability, analyst recommendations and valuation.
This table compares Embotelladora Andina and Dr Pepper Snapple Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Dr Pepper Snapple Group||11.73%||38.28%||8.50%|
This is a summary of current ratings and price targets for Embotelladora Andina and Dr Pepper Snapple Group, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Dr Pepper Snapple Group||1||6||5||0||2.33|
Dr Pepper Snapple Group has a consensus target price of $99.22, suggesting a potential upside of 7.89%.
Insider and Institutional Ownership
8.5% of Embotelladora Andina shares are owned by institutional investors. Comparatively, 91.5% of Dr Pepper Snapple Group shares are owned by institutional investors. 0.6% of Dr Pepper Snapple Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Embotelladora Andina pays an annual dividend of $0.63 per share. Dr Pepper Snapple Group pays an annual dividend of $2.32 per share and has a dividend yield of 2.5%. Embotelladora Andina pays out 64.9% of its earnings in the form of a dividend. Dr Pepper Snapple Group pays out 55.6% 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 has raised its dividend for 7 consecutive years. Dr Pepper Snapple Group is clearly the better dividend stock, given its higher yield and lower payout ratio.
Earnings & Valuation
This table compares Embotelladora Andina 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|
|Dr Pepper Snapple Group||$6.57 billion||2.54||$1.58 billion||$4.17||22.06|
Dr Pepper Snapple Group has higher revenue and earnings than Embotelladora Andina. Embotelladora Andina is trading at a lower price-to-earnings ratio than Dr Pepper Snapple Group, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Embotelladora Andina has a beta of 0.07, indicating that its share price is 93% less volatile than the S&P 500. Comparatively, Dr Pepper Snapple Group has a beta of 0.6, indicating that its share price is 40% less volatile than the S&P 500.
Dr Pepper Snapple Group beats Embotelladora Andina on 11 of the 14 factors compared between the two stocks.
About Embotelladora Andina
Embotelladora Andina S.A. (Andina) is a bottler of Coca-Cola trademark beverages in Latin America. The Company operates in four segments: Chile, Brazil, Argentina and Paraguay. It produces and distributes fruit juices, other fruit-flavored beverages and mineral and purified water in Chile, Argentina and Paraguay under trademarks owned by The Coca-Cola Company. The Company produces, markets and distributes the Coca-Cola trademark beverages and brands licensed from third-parties throughout its franchise territories. It manufactures polyethylene terephthalate (PET) bottles primarily for its own use in the packaging of Coca-Cola soft drinks in Chile and Argentina. In Brazil, it produces tea and juices for Leao Alimentos e Industria Ltda. It also distributes non-carbonated beverages in Brazil, such as tea, fruit juices, energy drinks, sport drinks and waters. It distributes beer in Brazil under the brands Amstel, Bavaria, Birra Moretti, Dos Equis (XX), Edelweiss, Heineken and Kaiser.
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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