Coca-Cola FEMSA (KOF) & Its Rivals Critical Review

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

Institutional & Insider Ownership

4.5% of Coca-Cola FEMSA shares are held by institutional investors. Comparatively, 51.0% of shares of all “Bottled & canned soft drinks” companies are held by institutional investors. 1.0% of Coca-Cola FEMSA shares are held by insiders. Comparatively, 17.0% of shares of all “Bottled & canned soft drinks” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and target prices for Coca-Cola FEMSA and its rivals, as reported 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 216 760 1020 36 2.43

Coca-Cola FEMSA presently has a consensus price target of $59.50, indicating a potential upside of 6.46%. As a group, “Bottled & canned soft drinks” companies have a potential upside of 39.19%. Given Coca-Cola FEMSA’s rivals stronger consensus rating and higher possible upside, analysts clearly believe Coca-Cola FEMSA has less favorable growth aspects than its rivals.

Risk & Volatility

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

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 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.

Profitability

This table compares Coca-Cola FEMSA and its rivals’ 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%

Earnings and Valuation

This table compares Coca-Cola FEMSA and its rivals gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Coca-Cola FEMSA $9.56 billion $774.40 million 15.19
Coca-Cola FEMSA Competitors $5.73 billion $412.51 million -99.19

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

Summary

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

About Coca-Cola FEMSA (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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