Contrasting Embotelladora Andina (NYSE:AKO.A) and CocaCola (NYSE:KO)

Embotelladora Andina (NYSE:AKO.A) and CocaCola (NYSE:KO) are both consumer staples companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, profitability, valuation, institutional ownership, earnings, dividends and risk.

Dividends

Embotelladora Andina pays an annual dividend of $0.67 per share and has a dividend yield of 2.9%. CocaCola pays an annual dividend of $2.12 per share and has a dividend yield of 2.5%. Embotelladora Andina pays out 32.8% of its earnings in the form of a dividend. CocaCola pays out 66.7% 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. CocaCola has raised its dividend for 64 consecutive years. Embotelladora Andina is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a summary of recent ratings and price targets for Embotelladora Andina and CocaCola, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Embotelladora Andina	0	0	0	0	0.00
CocaCola	0	1	15	0	2.94

CocaCola has a consensus price target of $88.81, indicating a potential upside of 4.73%. Given CocaCola’s stronger consensus rating and higher possible upside, analysts clearly believe CocaCola is more favorable than Embotelladora Andina.

Institutional & Insider Ownership

0.1% of Embotelladora Andina shares are held by institutional investors. Comparatively, 70.3% of CocaCola shares are held by institutional investors. 0.0% of Embotelladora Andina shares are held by company insiders. Comparatively, 0.9% of CocaCola shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Risk & Volatility

Embotelladora Andina has a beta of 0.46, suggesting that its share price is 54% less volatile than the S&P 500. Comparatively, CocaCola has a beta of 0.34, suggesting that its share price is 66% less volatile than the S&P 500.

Profitability

This table compares Embotelladora Andina and CocaCola’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Embotelladora Andina	8.70%	24.47%	8.89%
CocaCola	27.80%	40.55%	12.90%

Valuation & Earnings

This table compares Embotelladora Andina and CocaCola”s 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	1.03	$295.57 million	$2.04	11.21
CocaCola	$47.94 billion	7.61	$13.11 billion	$3.18	26.67

CocaCola has higher revenue and earnings than Embotelladora Andina. Embotelladora Andina is trading at a lower price-to-earnings ratio than CocaCola, indicating that it is currently the more affordable of the two stocks.

Summary

CocaCola beats Embotelladora Andina on 14 of the 17 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 CocaCola

The Coca-Cola Company, a beverage company, manufactures, markets, and sells various nonalcoholic beverages worldwide. The company provides sparkling soft drinks, sparkling flavors; water, sports, coffee, and tea; juice, value-added dairy, and plant-based beverages; and other beverages. It also offers beverage concentrates and syrups, as well as fountain syrups to fountain retailers, such as restaurants and convenience stores. The company sells its products under the Coca-Cola, Diet Coke/Coca-Cola Light, Coca-Cola Zero Sugar, caffeine free Diet Coke, Cherry Coke, Fanta Orange, Fanta Zero Orange, Fanta Zero Sugar, Fanta Apple, Sprite, Sprite Zero Sugar, Simply Orange, Simply Apple, Simply Grapefruit, Fresca, Schweppes, Thums Up, Aquarius, Ayataka, BODYARMOR, Ciel, Costa, Dasani, dogadan, FUZE TEA, Georgia, glacéau smartwater, glacéau vitaminwater, Gold Peak, Ice Dew, I LOHAS, Powerade, Topo Chico, AdeS, Del Valle, fairlife, innocent, Minute Maid, and Minute Maid Pulpy brands. It operates through a network of independent bottling partners, distributors, wholesalers, and retailers, as well as through bottling and distribution operators. The company was founded in 1886 and is headquartered in Atlanta, Georgia.