Analyzing Coca-Cola FEMSA (KOF) & Its Competitors

Coca-Cola FEMSA (NYSE:KOFGet Rating) is one of 18 public companies in the “Bottled & canned soft drinks” industry, but how does it contrast to its peers? We will compare Coca-Cola FEMSA to related businesses based on the strength of its valuation, profitability, dividends, institutional ownership, risk, earnings and analyst recommendations.

Volatility and Risk

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

Institutional & Insider Ownership

4.5% of Coca-Cola FEMSA shares are owned by institutional investors. Comparatively, 51.0% of shares of all “Bottled & canned soft drinks” companies are owned by institutional investors. 1.0% of Coca-Cola FEMSA shares are owned by company insiders. Comparatively, 17.2% of shares of all “Bottled & canned soft drinks” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Earnings & Valuation

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

Gross Revenue Net Income Price/Earnings Ratio
Coca-Cola FEMSA $9.56 billion $774.40 million 15.01
Coca-Cola FEMSA Competitors $5.72 billion $412.51 million -98.05

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

Dividends

Coca-Cola FEMSA pays an annual dividend of $2.42 per share and has a dividend yield of 4.4%. Coca-Cola FEMSA pays out 65.8% of its earnings in the form of a dividend. As a group, “Bottled & canned soft drinks” companies pay a dividend yield of 0.9% and pay out 20.6% of their earnings in the form of a dividend.

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Coca-Cola FEMSA 0 3 2 0 2.40
Coca-Cola FEMSA Competitors 215 759 1019 36 2.43

Coca-Cola FEMSA presently has a consensus price target of $59.50, suggesting a potential upside of 7.71%. As a group, “Bottled & canned soft drinks” companies have a potential upside of 41.95%. Given Coca-Cola FEMSA’s peers stronger consensus rating and higher possible upside, analysts clearly believe Coca-Cola FEMSA has less favorable growth aspects than its peers.

Profitability

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

Net Margins Return on Equity Return on Assets
Coca-Cola FEMSA 8.07% 12.86% 5.83%
Coca-Cola FEMSA Competitors 3.91% 0.12% 2.03%

Summary

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

Coca-Cola FEMSA Company Profile (Get Rating)

Coca-Cola FEMSA, S.A.B. de C.V., a franchise bottler, produces, markets, sells, and distributes Coca-Cola trademark beverages. The company offers sparkling beverages, including colas and flavored sparkling beverages; and waters and still beverages, such as juice drinks, coffee, teas, milk, value-added dairy products, sports and energy drinks, and plant-based drinks. It provides 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 theaters; points-of-sale outlets; and home delivery, supermarkets, and other locations. 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, S.A.B. de C.V. is a subsidiary of Fomento Economico Mexicano, S.A.B. de C.V.

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