Critical Review: Blue Gem Enterprise (OTCMKTS:BGEM) and CocaCola (NYSE:KO)

Blue Gem Enterprise (OTCMKTS:BGEM) and CocaCola (NYSE:KO) are both consumer staples companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, risk, profitability, dividends, earnings, valuation and institutional ownership.

Risk & Volatility

Blue Gem Enterprise has a beta of 2.03, indicating that its share price is 103% more volatile than the S&P 500. Comparatively, CocaCola has a beta of 0.44, indicating that its share price is 56% less volatile than the S&P 500.

Institutional & Insider Ownership

70.3% of CocaCola shares are held by institutional investors. 0.9% of CocaCola shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Blue Gem Enterprise and CocaCola’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Blue Gem Enterprise	N/A	N/A	N/A
CocaCola	25.89%	44.91%	12.23%

Analyst Ratings

This is a summary of recent ratings and target prices for Blue Gem Enterprise and CocaCola, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Blue Gem Enterprise	0	0	0	0	0.00
CocaCola	0	1	14	2	3.06

CocaCola has a consensus target price of $77.2143, indicating a potential upside of 11.66%. Given CocaCola’s stronger consensus rating and higher possible upside, analysts plainly believe CocaCola is more favorable than Blue Gem Enterprise.

Valuation and Earnings

This table compares Blue Gem Enterprise and CocaCola”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Blue Gem Enterprise	N/A	N/A	N/A	N/A	N/A
CocaCola	$47.06 billion	6.32	$10.63 billion	$2.82	24.52

CocaCola has higher revenue and earnings than Blue Gem Enterprise.

Summary

CocaCola beats Blue Gem Enterprise on 10 of the 11 factors compared between the two stocks.

About Blue Gem Enterprise

Blue Gem Enterprise, Inc., through its subsidiaries, engages in full service direct store beverage distribution activities in Florida, the United States. The company manages and distributes select allied brands, including the Title Sports Drink for food and beverage manufacturers pursuant to exclusive agreements with manufacturers. It distributes various non-alcohol beverages, such as ice teas, juices, nutritional shakes, energy shots, and sports drinks, as well as food products. The company also distributes refrigerated dairy products, fresh produce, and food and beverages, including milk; fruits, such as watermelon; nut and snack bars under the Wings of Nature Bars brand name; Apple Rush, an apple flavored fruit beverage; Xingtea, a tea beverage; and Myoplex, a shake. It serves independent retail stores and chain stores. Blue Gem Enterprise, Inc. is based in Opa-locka, Florida.

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.