Keurig Dr Pepper (NASDAQ:KDP) & Fomento Economico Mexicano (NYSE:FMX) Head to Head Analysis

Fomento Economico Mexicano (NYSE:FMX) and Keurig Dr Pepper (NASDAQ:KDP) are both large-cap consumer staples companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, dividends, earnings, valuation, institutional ownership, profitability and analyst recommendations.

Institutional and Insider Ownership

61.0% of Fomento Economico Mexicano shares are held by institutional investors. Comparatively, 94.0% of Keurig Dr Pepper shares are held by institutional investors. 5.7% of Fomento Economico Mexicano shares are held by insiders. Comparatively, 0.4% of Keurig Dr Pepper shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Fomento Economico Mexicano and Keurig Dr Pepper’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fomento Economico Mexicano	3.98%	7.86%	3.53%
Keurig Dr Pepper	9.69%	10.86%	5.03%

Dividends

Fomento Economico Mexicano pays an annual dividend of $0.51 per share and has a dividend yield of 0.5%. Keurig Dr Pepper pays an annual dividend of $0.92 per share and has a dividend yield of 2.7%. Fomento Economico Mexicano pays out 11.4% of its earnings in the form of a dividend. Keurig Dr Pepper pays out 83.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Keurig Dr Pepper has raised its dividend for 4 consecutive years. Keurig Dr Pepper is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Fomento Economico Mexicano and Keurig Dr Pepper, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fomento Economico Mexicano	0	3	2	0	2.40
Keurig Dr Pepper	0	2	12	1	2.93

Fomento Economico Mexicano presently has a consensus price target of $106.70, indicating a potential upside of 4.86%. Keurig Dr Pepper has a consensus price target of $40.00, indicating a potential upside of 19.35%. Given Keurig Dr Pepper’s stronger consensus rating and higher probable upside, analysts plainly believe Keurig Dr Pepper is more favorable than Fomento Economico Mexicano.

Risk and Volatility

Fomento Economico Mexicano has a beta of 0.67, suggesting that its share price is 33% less volatile than the S&P 500. Comparatively, Keurig Dr Pepper has a beta of 0.48, suggesting that its share price is 52% less volatile than the S&P 500.

Earnings & Valuation

This table compares Fomento Economico Mexicano and Keurig Dr Pepper”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fomento Economico Mexicano	$42.88 billion	0.85	$1.28 billion	$4.47	22.76
Keurig Dr Pepper	$15.52 billion	2.93	$1.44 billion	$1.10	30.47

Keurig Dr Pepper has lower revenue, but higher earnings than Fomento Economico Mexicano. Fomento Economico Mexicano is trading at a lower price-to-earnings ratio than Keurig Dr Pepper, indicating that it is currently the more affordable of the two stocks.

Summary

Keurig Dr Pepper beats Fomento Economico Mexicano on 13 of the 18 factors compared between the two stocks.

About Fomento Economico Mexicano

Fomento Económico Mexicano, S.A.B. de C.V., through its subsidiaries, operates as a bottler of Coca-Cola trademark beverages. The company produces, markets, and distributes Coca-Cola trademark beverages in Mexico, Guatemala, Nicaragua, Costa Rica, Panama, Colombia, Venezuela, Brazil, Argentina, and Uruguay. It also operates small-box retail chain stores in Mexico, Colombia, Peru, Chile, and Brazil under the OXXO name; retail service stations for fuels, motor oils, lubricants, and car care products under the OXXO GAS name in Mexico; and drugstores in Chile, Colombia, Ecuador, and Mexico under the Cruz Verde, Fybeca, SanaSana, YZA, La Moderna, and Farmacon names. In addition, the company is involved in the production and distribution of collers, commercial refrigeration equipment, plastic boxes, food processing, and preservation and weighing equipment; and provision of logistic transportation, distribution and maintenance, point-of-sale refrigeration, and plastics solutions, as well as distribution platform for cleaning products and consumables. Further, it operates small-box retail and food convenience chain stores in Switzerland, Germany, Austria, Luxembourg, and the Netherlands under the k kiosk, Brezelkönig, BackWerk, Ditsch, Press & Books, avec, Caffè Spettacolo, and ok.) names, as well as pretzels under the Ditsch name. The company was founded in 1890 and is based in Monterrey, Mexico.

About Keurig Dr Pepper

Keurig Dr Pepper Inc. owns, manufactures, and distributors beverages and single serve brewing systems in the United States and internationally. It operates through three segments: U.S. Refreshment Beverages, U.S. Coffee, and International. The U.S. Refreshment Beverages segment manufactures and distributes branded concentrates, syrup, and finished beverages. Its U.S. Coffee segment offers finished goods relating to K-Cup pods, single serve brewers, specialty coffee, and ready to drink coffee products through Keurig.com website. The International segment provides sales in Canada, Mexico, the Caribbean, and other international markets from the manufacture and distribution of branded concentrates, syrup, and finished beverages; and sales in Canada from the manufacture and distribution of finished goods relating to the Company's single serve brewers, KCup pods, and other coffee products. It serves retailers, third-party bottlers and distributors, retail partners, hotel chains, office coffee distributors, and end-use consumers. The company offers its products under the Dr Pepper, Canada Dry, Green Mountain Coffee Roasters, Snapple, Mott's, The Original Donut Shop, Clamato, and Core Hydration brand name. Keurig Dr Pepper Inc. was founded in 1981 and is headquartered in Burlington, Massachusetts.