Reviewing Coca-Cola Bottling Co Consolidated (COKE) & Brown-Forman (BF.A)

Coca-Cola Bottling Co Consolidated (NASDAQ: COKE) and Brown-Forman (NYSE:BF.A) are both consumer staples companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, institutional ownership, valuation, profitability, earnings, analyst recommendations and dividends.

Insider & Institutional Ownership

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39.0% of Coca-Cola Bottling Co Consolidated shares are held by institutional investors. Comparatively, 5.4% of Brown-Forman shares are held by institutional investors. 0.0% of Coca-Cola Bottling Co Consolidated shares are held by company insiders. Comparatively, 4.4% of Brown-Forman shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Coca-Cola Bottling Co Consolidated and Brown-Forman’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Coca-Cola Bottling Co Consolidated 2.23% 11.63% 1.58%
Brown-Forman 18.15% 55.27% 16.02%

Valuation and Earnings

This table compares Coca-Cola Bottling Co Consolidated and Brown-Forman’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Coca-Cola Bottling Co Consolidated $4.32 billion 0.39 $96.53 million $10.30 17.39
Brown-Forman $3.86 billion 6.83 $669.00 million $1.55 35.40

Brown-Forman has lower revenue, but higher earnings than Coca-Cola Bottling Co Consolidated. Coca-Cola Bottling Co Consolidated is trading at a lower price-to-earnings ratio than Brown-Forman, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings and price targets for Coca-Cola Bottling Co Consolidated and Brown-Forman, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Coca-Cola Bottling Co Consolidated 0 0 0 0 N/A
Brown-Forman 0 1 0 0 2.00

Brown-Forman has a consensus target price of $56.00, suggesting a potential upside of 2.06%. Given Brown-Forman’s higher probable upside, analysts clearly believe Brown-Forman is more favorable than Coca-Cola Bottling Co Consolidated.

Dividends

Coca-Cola Bottling Co Consolidated pays an annual dividend of $1.00 per share and has a dividend yield of 0.6%. Brown-Forman pays an annual dividend of $0.63 per share and has a dividend yield of 1.1%. Coca-Cola Bottling Co Consolidated pays out 9.7% of its earnings in the form of a dividend. Brown-Forman pays out 40.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Risk and Volatility

Coca-Cola Bottling Co Consolidated has a beta of 0.09, meaning that its stock price is 91% less volatile than the S&P 500. Comparatively, Brown-Forman has a beta of 0.91, meaning that its stock price is 9% less volatile than the S&P 500.

Summary

Brown-Forman beats Coca-Cola Bottling Co Consolidated on 10 of the 14 factors compared between the two stocks.

Coca-Cola Bottling Co Consolidated Company Profile

Coca-Cola Bottling Co. Consolidated produces, markets and distributes nonalcoholic beverages. The Company is an independent Coca-Cola bottler in the United States. The Company’s segments include Nonalcoholic Beverages and All Other. Majority of its total bottle/can volume to retail customers consist of products of The Coca-Cola Company. It also distributes products for various other beverage brands, including Dr Pepper, Sundrop and Monster Energy. The Company’s product offerings include both sparkling and still beverages. Sparkling beverages are carbonated beverages and the Company’s principal sparkling beverage is Coca-Cola. Still beverages include energy products and noncarbonated beverages, such as bottled water, tea, ready to drink coffee, enhanced water, juices and sports drinks. There are two main categories of sales, which include bottle/can sales and other sales.

Brown-Forman Company Profile

Brown-Forman Corporation is a spirit and wine company. The Company manufactures, bottles, imports, exports, markets and sells a range of alcoholic beverages. The Company has a portfolio of approximately 40 spirit, wine and ready-to-drink cocktail (RTD) brands. Its principal brands include Jack Daniel’s Tennessee Whiskey, Jack Daniel’s RTDs, Jack Daniel’s Tennessee Honey, Gentleman Jack Rare Tennessee Whiskey, Jack Daniel’s Tennessee Fire, Jack Daniel’s Single Barrel Collection, Jack Daniel’s Sinatra Select, Jack Daniel’s Winter Jack, Jack Daniel’s No. 27 Gold Tennessee Whiskey, Finlandia Vodkas, Finlandia RTDs, Korbel California Brandy, Woodford Reserve Kentucky Bourbons, el Jimador Tequilas, el Jimador New Mix RTDs, Herradura Tequilas, Canadian Mist Canadian Whisky, Sonoma-Cutrer California Wines, Early Times Kentucky Whisky and Bourbon, Chambord Liqueur, Old Forester Kentucky Bourbon, Antiguo Tequila, Pepe Lopez Tequila, Santa Dose Cachaca and Collingwood Canadian Whisky.

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