Keurig Dr Pepper (NASDAQ:KDP – Get Free Report) and Embotelladora Andina (NYSE:AKO.A – Get Free Report) are both consumer staples companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, institutional ownership, dividends, analyst recommendations, profitability, valuation and risk.
Dividends
Keurig Dr Pepper pays an annual dividend of $0.92 per share and has a dividend yield of 3.2%. Embotelladora Andina pays an annual dividend of $0.23 per share and has a dividend yield of 1.0%. Keurig Dr Pepper pays out 68.1% of its earnings in the form of a dividend. Embotelladora Andina pays out 11.3% 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. Keurig Dr Pepper has increased 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.
Profitability
This table compares Keurig Dr Pepper and Embotelladora Andina’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Keurig Dr Pepper | 10.81% | 10.51% | 4.64% |
| Embotelladora Andina | 8.70% | 24.47% | 8.89% |
Risk and Volatility
Institutional and Insider Ownership
94.0% of Keurig Dr Pepper shares are held by institutional investors. Comparatively, 0.1% of Embotelladora Andina shares are held by institutional investors. 0.3% of Keurig Dr Pepper shares are held by company insiders. Comparatively, 0.0% of Embotelladora Andina shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Earnings and Valuation
This table compares Keurig Dr Pepper and Embotelladora Andina”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Keurig Dr Pepper | $16.60 billion | 2.35 | $2.08 billion | $1.35 | 21.27 |
| Embotelladora Andina | $3.52 billion | 1.03 | $295.57 million | $2.04 | 11.29 |
Keurig Dr Pepper has higher revenue and earnings than Embotelladora Andina. Embotelladora Andina 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.
Analyst Ratings
This is a summary of recent recommendations and price targets for Keurig Dr Pepper and Embotelladora Andina, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Keurig Dr Pepper | 0 | 9 | 6 | 1 | 2.50 |
| Embotelladora Andina | 0 | 0 | 0 | 0 | 0.00 |
Keurig Dr Pepper presently has a consensus price target of $31.57, suggesting a potential upside of 9.97%. Given Keurig Dr Pepper’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Keurig Dr Pepper is more favorable than Embotelladora Andina.
Summary
Keurig Dr Pepper beats Embotelladora Andina on 13 of the 18 factors compared between the two stocks.
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.
About Embotelladora Andina
Embotelladora Andina S.A., together with its subsidiaries, produces, markets, and distributes Coca-Cola soft drinks in Chile, Brazil, Argentina, and Paraguay. It also offers fruit-flavored beverages, juices, sports and energy drinks, ice tea, and bottled water. Embotelladora Andina S.A. was founded in 1946 and is headquartered in Santiago, Chile.
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