Embotelladora Andina (NYSE:AKO.B) versus PepsiCo (NASDAQ:PEP) Financial Comparison

PepsiCo (NASDAQ:PEP) and Embotelladora Andina (NYSE:AKO.B) are both consumer staples companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, institutional ownership, earnings, risk, analyst recommendations, valuation and dividends.

Dividends

PepsiCo pays an annual dividend of $5.92 per share and has a dividend yield of 4.4%. Embotelladora Andina pays an annual dividend of $0.74 per share and has a dividend yield of 2.5%. PepsiCo pays out 77.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Embotelladora Andina pays out 36.3% of its earnings in the form of a dividend. PepsiCo has increased its dividend for 54 consecutive years. PepsiCo is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility & Risk

PepsiCo has a beta of 0.36, indicating that its stock price is 64% less volatile than the S&P 500. Comparatively, Embotelladora Andina has a beta of 0.63, indicating that its stock price is 37% less volatile than the S&P 500.

Insider & Institutional Ownership

73.1% of PepsiCo shares are held by institutional investors. Comparatively, 1.6% of Embotelladora Andina shares are held by institutional investors. 0.1% of PepsiCo shares are held by insiders. Comparatively, 0.0% of Embotelladora Andina shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares PepsiCo and Embotelladora Andina”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PepsiCo	$93.92 billion	1.95	$8.24 billion	$7.63	17.59
Embotelladora Andina	$3.52 billion	1.33	$295.57 million	$2.04	14.50

PepsiCo has higher revenue and earnings than Embotelladora Andina. Embotelladora Andina is trading at a lower price-to-earnings ratio than PepsiCo, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current recommendations and price targets for PepsiCo and Embotelladora Andina, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PepsiCo	1	12	7	0	2.30
Embotelladora Andina	0	1	0	1	3.00

PepsiCo presently has a consensus price target of $157.90, suggesting a potential upside of 17.62%. Given PepsiCo’s higher possible upside, research analysts plainly believe PepsiCo is more favorable than Embotelladora Andina.

Profitability

This table compares PepsiCo and Embotelladora Andina’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PepsiCo	10.78%	54.63%	10.49%
Embotelladora Andina	8.70%	24.47%	8.89%

Summary

PepsiCo beats Embotelladora Andina on 14 of the 18 factors compared between the two stocks.

About PepsiCo

PepsiCo, Inc. engages in the manufacture, marketing, distribution, and sale of various beverages and convenient foods worldwide. The company operates through seven segments: Frito-Lay North America; Quaker Foods North America; PepsiCo Beverages North America; Latin America; Europe; Africa, Middle East and South Asia; and Asia Pacific, Australia and New Zealand and China Region. It provides dips, cheese-flavored snacks, and spreads, as well as corn, potato, and tortilla chips; cereals, rice, pasta, mixes and syrups, granola bars, grits, oatmeal, rice cakes, and side dishes; beverage concentrates, fountain syrups, and finished goods; ready-to-drink tea, coffee, and juices; dairy products; and sparkling water makers and related products, as well as distributes alcoholic beverages under Hard MTN Dew brand. The company offers its products primarily under the Lay’s, Doritos, Fritos, Tostitos, BaiCaoWei, Cheetos, Cap’n Crunch, Life, Pearl Milling Company, Gatorade, Pepsi-Cola, Mountain Dew, Quaker, Rice-A-Roni, Aquafina, Bubly, Emperador, Diet Mountain Dew, Diet Pepsi, Gatorade Zero, Crush, Propel, Dr Pepper, Schweppes, Marias Gamesa, Ruffles, Sabritas, Saladitas, Tostitos, 7UP, Diet 7UP, H2oh!, Manzanita Sol, Mirinda, Pepsi Black, Pepsi Max, San Carlos, Toddy, Walkers, Chipsy, Kurkure, Sasko, Spekko, White Star, Smith’s, Sting, SodaStream, Lubimyj Sad, Agusha, Chudo, Domik v Derevne, Lipton, and other brands. It serves wholesale and other distributors, foodservice customers, grocery stores, drug stores, convenience stores, discount/dollar stores, mass merchandisers, membership stores, hard discounters, e-commerce retailers and authorized independent bottlers, and others through a network of direct-store-delivery, customer warehouse, and distributor networks, as well as directly to consumers through e-commerce platforms and retailers. The company was founded in 1898 and is based in Purchase, New York.

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.