Long Blockchain (LBCC) and The Coca-Cola (KO) Critical Analysis

Long Blockchain (NASDAQ: LBCC) and The Coca-Cola (NYSE:KO) are both non-alcoholic beverages – nec companies, but which is the better investment? We will compare the two companies based on the strength of their valuation, profitability, institutional ownership, risk, earnings, dividends and analyst recommendations.

Valuation & Earnings

This table compares Long Blockchain and The Coca-Cola’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Long Blockchain $4.56 million 9.24 -$10.44 million ($1.64) -2.57
The Coca-Cola $41.86 billion 4.77 $6.53 billion $1.05 44.59

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

Institutional and Insider Ownership

1.7% of Long Blockchain shares are held by institutional investors. Comparatively, 65.3% of The Coca-Cola shares are held by institutional investors. 18.1% of Long Blockchain shares are held by company insiders. Comparatively, 1.5% of The Coca-Cola shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Long Blockchain and The Coca-Cola’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Long Blockchain -270.51% -484.90% -228.36%
The Coca-Cola 12.20% 36.21% 9.10%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Long Blockchain and The Coca-Cola, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Long Blockchain 0 0 0 0 N/A
The Coca-Cola 2 12 9 0 2.30

The Coca-Cola has a consensus price target of $48.70, suggesting a potential upside of 4.01%. Given The Coca-Cola’s higher probable upside, analysts clearly believe The Coca-Cola is more favorable than Long Blockchain.

Dividends

The Coca-Cola pays an annual dividend of $1.48 per share and has a dividend yield of 3.2%. Long Blockchain does not pay a dividend. The Coca-Cola pays out 141.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Long Blockchain has raised its dividend for 55 consecutive years.

Risk & Volatility

Long Blockchain has a beta of -52.82, suggesting that its stock price is 5,382% less volatile than the S&P 500. Comparatively, The Coca-Cola has a beta of 0.7, suggesting that its stock price is 30% less volatile than the S&P 500.

Summary

The Coca-Cola beats Long Blockchain on 12 of the 16 factors compared between the two stocks.

About Long Blockchain

Long Blockchain Corp., formerly Long Island Iced Tea Corp., is a holding company operating through its subsidiary, Long Island Brand Beverages, LLC (LIBB). The Company is engaged in the production and distribution of Non-Alcoholic Ready-to-Drink (NARTD) iced tea in the beverage industry. It is organized around its brand, Long Island Iced Tea. Long Island Iced Tea is sold primarily on the East Coast of the United States through a network of national and regional retail chains and distributors. The Company produces brewed tea, using black tea leaves, purified water and natural cane sugar or sucralose. The Company’s Long Island Iced Tea’s flavors include lemon, peach, raspberry, guava, mango, diet lemon, diet peach and sweet tea. It also offers lower calorie iced tea in over 12 ounce bottles. The lower calorie flavor options include mango, raspberry and peach. The Company’s products include All-Natural Tea, Diet Tea, Fruit-Flavored Tea, Organic Tea and Herbal Tea.

About The Coca-Cola

The Coca-Cola Company is a beverage company. The Company owns or licenses and markets non-alcoholic beverage brands, primarily sparkling beverages and a range of still beverages, such as waters, flavored waters and enhanced waters, juices and juice drinks, ready-to-drink teas and coffees, sports drinks, dairy and energy drinks. The Company’s segments include Europe, Middle East and Africa; Latin America; North America; Asia Pacific; Bottling Investments, and Corporate. The Company owns and markets a range of non-alcoholic sparkling beverage brands, including Coca-Cola, Diet Coke, Fanta and Sprite. The Company owns or licenses and markets over 500 non-alcoholic beverage brands. The Company markets, manufactures and sells beverage concentrates, which are referred to as beverage bases, and syrups, including fountain syrups, and finished sparkling and still beverages.

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