Molson Coors Beverage (NYSE:TAP – Get Free Report) and CocaCola (NYSE:KO – Get Free Report) are both consumer staples companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, dividends, valuation, institutional ownership, analyst recommendations, earnings and risk.
Analyst Ratings
This is a summary of recent ratings for Molson Coors Beverage and CocaCola, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Molson Coors Beverage | 4 | 11 | 4 | 0 | 2.00 |
| CocaCola | 0 | 3 | 14 | 1 | 2.89 |
Molson Coors Beverage currently has a consensus price target of $44.06, indicating a potential upside of 19.52%. CocaCola has a consensus price target of $95.76, indicating a potential upside of 8.26%. Given Molson Coors Beverage’s higher possible upside, equities analysts clearly believe Molson Coors Beverage is more favorable than CocaCola.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Molson Coors Beverage | -17.83% | 9.46% | 4.25% |
| CocaCola | 28.56% | 39.38% | 13.18% |
Dividends
Molson Coors Beverage pays an annual dividend of $1.92 per share and has a dividend yield of 5.2%. CocaCola pays an annual dividend of $2.12 per share and has a dividend yield of 2.4%. Molson Coors Beverage pays out -16.6% of its earnings in the form of a dividend. CocaCola pays out 63.7% 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. Molson Coors Beverage has raised its dividend for 4 consecutive years and CocaCola has raised its dividend for 64 consecutive years. Molson Coors Beverage is clearly the better dividend stock, given its higher yield and lower payout ratio.
Volatility & Risk
Molson Coors Beverage has a beta of 0.42, indicating that its share price is 58% less volatile than the S&P 500. Comparatively, CocaCola has a beta of 0.34, indicating that its share price is 66% less volatile than the S&P 500.
Earnings and Valuation
This table compares Molson Coors Beverage and CocaCola”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Molson Coors Beverage | $13.04 billion | 0.53 | -$2.14 billion | ($11.54) | -3.19 |
| CocaCola | $50.13 billion | 7.59 | $13.11 billion | $3.33 | 26.56 |
CocaCola has higher revenue and earnings than Molson Coors Beverage. Molson Coors Beverage is trading at a lower price-to-earnings ratio than CocaCola, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
78.5% of Molson Coors Beverage shares are owned by institutional investors. Comparatively, 70.3% of CocaCola shares are owned by institutional investors. 2.3% of Molson Coors Beverage shares are owned by insiders. Comparatively, 0.9% of CocaCola shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Summary
CocaCola beats Molson Coors Beverage on 12 of the 18 factors compared between the two stocks.
About Molson Coors Beverage
Molson Coors Beverage Company manufactures, markets, and sells beer and other malt beverage products under various brands in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company offers flavored malt beverages including hard seltzers, craft, spirits and energy, and ready to drink beverages. It provides its products under Aspall Cider, Blue Moon, Coors Original, Five Trail, Hop Valley brands, Leinenkugel’s, Madri, Miller Genuine Draft, Molson Ultra, Sharp’s, Staropramen, and Vizzy Hard Seltzer above premier brands; Bergenbier, Borsodi, Carling, Coors Banquet, Coors Light, Jelen, Kamenitza, Miller Lite, Molson Canadian, and Niksicko, Ozujsko under the premium brands; and Branik, Icehouse, Keystone, Miller High Life, Milwaukee’s Best, and Steel Reserve under the economy brands. The company was formerly known as Molson Coors Brewing Company and changed its name to Molson Coors Beverage Company in January 2020. Molson Coors Beverage Company was founded in 1774 and is based in Golden, Colorado.
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.
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