Embotelladora Andina SA ADR Series A (AKO.A) versus Fomento Economico Mexicano SAB (FMX) Critical Survey

Embotelladora Andina SA ADR Series A (NYSE:AKO.A) and Fomento Economico Mexicano SAB (NYSE:FMX) are both consumer staples companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, dividends, earnings, profitability, valuation, institutional ownership and analyst recommendations.

Dividends

Embotelladora Andina SA ADR Series A pays an annual dividend of $0.48 per share and has a dividend yield of 2.5%. Fomento Economico Mexicano SAB pays an annual dividend of $1.36 per share and has a dividend yield of 1.6%. Fomento Economico Mexicano SAB pays out 22.6% of its earnings in the form of a dividend.

Valuation & Earnings

This table compares Embotelladora Andina SA ADR Series A and Fomento Economico Mexicano SAB’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Embotelladora Andina SA ADR Series A $2.85 billion 1.07 $176.75 million N/A N/A
Fomento Economico Mexicano SAB $24.42 billion 1.27 $2.16 billion $6.03 14.39

Fomento Economico Mexicano SAB has higher revenue and earnings than Embotelladora Andina SA ADR Series A.

Institutional & Insider Ownership

0.2% of Embotelladora Andina SA ADR Series A shares are owned by institutional investors. Comparatively, 19.8% of Fomento Economico Mexicano SAB shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Embotelladora Andina SA ADR Series A and Fomento Economico Mexicano SAB, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Embotelladora Andina SA ADR Series A 0 0 1 0 3.00
Fomento Economico Mexicano SAB 0 1 3 0 2.75

Embotelladora Andina SA ADR Series A currently has a consensus price target of $32.00, suggesting a potential upside of 65.72%. Given Embotelladora Andina SA ADR Series A’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Embotelladora Andina SA ADR Series A is more favorable than Fomento Economico Mexicano SAB.

Profitability

This table compares Embotelladora Andina SA ADR Series A and Fomento Economico Mexicano SAB’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Embotelladora Andina SA ADR Series A 6.63% 14.56% 5.74%
Fomento Economico Mexicano SAB 3.16% 4.59% 2.56%

Volatility & Risk

Embotelladora Andina SA ADR Series A has a beta of 0.07, meaning that its stock price is 93% less volatile than the S&P 500. Comparatively, Fomento Economico Mexicano SAB has a beta of 0.73, meaning that its stock price is 27% less volatile than the S&P 500.

Summary

Embotelladora Andina SA ADR Series A beats Fomento Economico Mexicano SAB on 8 of the 14 factors compared between the two stocks.

Embotelladora Andina SA ADR Series A Company Profile

Embotelladora Andina SA engages in the production and distribution of Coca-Cola products. Its products are categorized through sparkling beverages, juice, water, sport drink, energy drink, and ice tea. The company was founded on February 7, 1946 and is headquartered in Santiago, Chile.

Fomento Economico Mexicano SAB Company Profile

Fomento Económico Mexicano, S.A.B. de C.V., through its subsidiaries, operates as a bottler of Coca-Cola trademark beverages and a chain of small-format stores. The company produces, markets, distributes, and sells Coca-Cola trademark beverages, including sparkling beverages, such as colas and flavored sparkling beverages; and waters and still beverages comprising juice, coffee, tea, milk, value-added dairy, sports, energy, and plant-based drinks. It also operates small-box retail chain stores in Mexico, Colombia, and the United States under the OXXO and Big John names; retail service stations for fuels, motor oils, lubricants, and car care products in Mexico under the OXXO GAS name; and drugstores in Chile, Colombia, and Mexico under the Cruz Verde, YZA, La Moderna, and Farmacon names. In addition, the company engages in the production and distribution of coolers, commercial refrigeration equipment, and plastic cases, as well as food processing, preservation, and weighing equipment; and provision of logistic transportation and maintenance, point-of-sale refrigeration, and plastics solutions. As of December 31, 2017, it operated 16,526 OXXO small-format stores in Mexico and Colombia, and 51 stores in Chile; 1,123 points of sale in Mexico, 882 in Chile, and 220 in Colombia; and 452 service stations in Mexico. Fomento Económico Mexicano, S.A.B. de C.V. was founded in 1890 and is headquartered in Monterrey, Mexico.

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