Head-to-head contrast: Coca-Cola FEMSA (KOF) and the competition

Coca-Cola FEMSA (NYSE:KOF – Get Rating) is one of 18 public companies in the ‘bottled and canned soft drinks’ sector, but how does it stack up against its peers? We will compare Coca-Cola FEMSA to related companies based on valuation strength, institutional ownership, analyst recommendations, risk, earnings, dividends and profitability.

Insider and Institutional Ownership

4.5% of Coca-Cola FEMSA shares are held by institutional investors. By comparison, 51.0% of the shares of all “bottled and canned soft drink” companies are held by institutional investors. 1.0% of Coca-Cola FEMSA shares are held by insiders. By comparison, 17.0% of the shares of all “bottled and canned soft drink” companies are held by insiders. Strong institutional ownership indicates that hedge funds, large money managers, and endowments believe a company is poised for long-term growth.

Volatility and risk

Coca-Cola FEMSA has a beta of 0.86, suggesting that its stock price is 14% less volatile than the S&P 500. Comparatively, Coca-Cola FEMSA’s peers have a beta of 1.10, which suggests that their average price is 10% more volatile than the S&P 500.

Profitability

This table compares the net margins, return on equity and return on assets of Coca-Cola FEMSA and its peers.

Benefits and evaluation

This table compares the revenue, earnings per share, and valuation of Coca-Cola FEMSA and its peers.

Coca-Cola FEMSA has higher revenues and profits than its peers. Coca-Cola FEMSA trades at a higher price-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Analyst Recommendations

This is a summary of current recommendations and price targets for Coca-Cola FEMSA and its peers, as provided by MarketBeat.

Coca-Cola FEMSA currently has a consensus price target of $59.50, suggesting a potential upside of 5.67%. As a group, the “bottled and canned soft drink” companies have an upside potential of 39.48%. Since Coca-Cola FEMSA’s peers have a higher consensus rating and higher likely upside, analysts clearly believe that Coca-Cola FEMSA has less favorable growth aspects than its peers.

Dividends

Coca-Cola FEMSA pays an annual dividend of $2.42 per share and has a dividend yield of 4.3%. Coca-Cola FEMSA pays 65.8% of its profits as a dividend. As a group, the “bottled and canned soft drink” companies pay a dividend yield of 0.9% and pay out 20.6% of their profits as a dividend.

Summary

Coca-Cola FEMSA’s peers beat Coca-Cola FEMSA on 8 of the 15 factors compared.

About Coca-Cola FEMSA (Get a rating)

Coca-Cola FEMSA, SAB de CV, a franchised bottler, produces, markets, sells and distributes Coca-Cola brand beverages. The company offers sparkling beverages, including colas and flavored sparkling beverages; and still waters and beverages, such as juice drinks, coffee, teas, milk, value-added dairy products, sports and energy drinks, and plant-based beverages. It offers a portfolio of products through retail outlets, such as wholesale supermarkets, discount stores and convenience stores; retailers, such as restaurants and bars, as well as stadiums, auditoriums and theatres; outlets; and home delivery, supermarkets and other places. The Company also distributes and sells Heineken beer products in its Brazilian territories. It operates in Mexico, Guatemala, Nicaragua, Costa Rica, Panama, Colombia, Brazil, Argentina and Uruguay. The company was founded in 1979 and is headquartered in Mexico City, Mexico. Coca-Cola FEMSA, SAB de CV is a subsidiary of Fomento Economico Mexicano, SAB de CV

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