Comparing Luckin Coffee (OTCMKTS:LKNCY) & Vita Coco (NASDAQ:COCO)

Luckin Coffee (OTCMKTS:LKNCY) and Vita Coco (NASDAQ:COCO) are both consumer staples companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, earnings, institutional ownership, analyst recommendations, valuation, profitability and risk.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Luckin Coffee and Vita Coco, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Luckin Coffee	0	0	0	0	0.00
Vita Coco	0	3	5	0	2.63

Vita Coco has a consensus price target of $38.38, indicating a potential upside of 4.51%. Given Vita Coco’s stronger consensus rating and higher possible upside, analysts clearly believe Vita Coco is more favorable than Luckin Coffee.

Earnings and Valuation

This table compares Luckin Coffee and Vita Coco”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Luckin Coffee	$4.72 billion	2.17	$401.71 million	$1.76	20.57
Vita Coco	$516.01 million	4.04	$55.95 million	$1.07	34.32

Luckin Coffee has higher revenue and earnings than Vita Coco. Luckin Coffee is trading at a lower price-to-earnings ratio than Vita Coco, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Luckin Coffee has a beta of -0.36, suggesting that its share price is 136% less volatile than the S&P 500. Comparatively, Vita Coco has a beta of 0.36, suggesting that its share price is 64% less volatile than the S&P 500.

Profitability

This table compares Luckin Coffee and Vita Coco’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Luckin Coffee	9.59%	36.80%	18.33%
Vita Coco	11.50%	24.99%	17.84%

Institutional and Insider Ownership

0.5% of Luckin Coffee shares are owned by institutional investors. Comparatively, 88.5% of Vita Coco shares are owned by institutional investors. 2.7% of Luckin Coffee shares are owned by company insiders. Comparatively, 34.2% of Vita Coco shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Vita Coco beats Luckin Coffee on 9 of the 14 factors compared between the two stocks.

About Luckin Coffee

Luckin Coffee Inc. offers retail services of freshly brewed drinks, and pre-made food and beverage items in the People's Republic of China. It offers hot and iced freshly brewed coffee, such as Americano, Latte, Cappuccino, Macchiato, Flat White, and Mocha, as well as specialty coffee based on market and seasonal trends; coconut milk latte products; tea drinks; pre-made beverages; and pre-made food items, such as pastries, sandwiches, and snacks. In addition, the company offers Luckin Pop premium instant coffee and inspirational cups through mobile apps and e-commerce platforms. It operates pick-up stores, relax stores, and delivery kitchens under the Luckin brand, as well as Luckin mobile app, Weixin mini-program, and other third-party platforms for third-party payment channels. Further, the company offers technical and consultation services; and manufactures materials for products. Luckin Coffee Inc. was incorporated in 2017 and is headquartered in Xiamen, the People's Republic of China.

About Vita Coco

The Vita Coco Company, Inc. develops, markets, and distributes coconut water products under the Vita Coco brand name in the United States, Canada, Europe, the Middle East, Africa, and the Asia Pacific. The company offers coconut oil and coconut milk; juice; Runa, a plant-based energy drink; packaged water under the Ever & Ever brand name; and PWR LIFT, a protein-infused fitness drink. It also provides private label coconut water and oil to retailers. It distributes its products through club, food, drug, mass, convenience, e-commerce, and foodservice channels. The company was formerly known as All Market Inc. and changed its name to The Vita Coco Company, Inc. in September 2021.The Vita Coco Company, Inc. was incorporated in 2004 and is headquartered in New York, New York.