Critical Survey: Arca Continental (EMBVF) and Its Competitors

Arca Continental (OTCMKTS:EMBVF) is one of 140 publicly-traded companies in the “Beverages” industry, but how does it compare to its rivals? We will compare Arca Continental to similar companies based on the strength of its valuation, analyst recommendations, profitability, risk, institutional ownership, dividends and earnings.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Arca Continental and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Arca Continental	0	0	4	0	3.00
Arca Continental Competitors	1246	4212	5630	221	2.43

As a group, “Beverages” companies have a potential upside of 13.50%. Given Arca Continental’s rivals higher probable upside, analysts clearly believe Arca Continental has less favorable growth aspects than its rivals.

Dividends

Arca Continental pays an annual dividend of $1.50 per share and has a dividend yield of 13.4%. Arca Continental pays out 38.9% of its earnings in the form of a dividend. As a group, “Beverages” companies pay a dividend yield of 2.5% and pay out 40.3% of their earnings in the form of a dividend. Arca Continental is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.

Institutional and Insider Ownership

6.2% of Arca Continental shares are owned by institutional investors. Comparatively, 36.7% of shares of all “Beverages” companies are owned by institutional investors. 19.0% of shares of all “Beverages” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Arca Continental and its rivals revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Arca Continental	N/A	N/A	2.90
Arca Continental Competitors	$12.53 billion	$874.57 million	11.90

Arca Continental’s rivals have higher revenue and earnings than Arca Continental. Arca Continental is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Arca Continental and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Arca Continental	N/A	N/A	N/A
Arca Continental Competitors	-9.25%	-39.52%	-0.98%

Summary

Arca Continental beats its rivals on 7 of the 13 factors compared.

About Arca Continental

Arca Continental, S.A.B. de C.V., together with its subsidiaries, produces, distributes, and sells non-alcoholic beverages in Mexico, Peru, the United States, Argentina, and Ecuador. It operates through Beverages and Other segments. The company's products include soft drinks, milk whole/light/flavored, fruit/soy, and energy/sports drinks; water; tea; sugar/candies; coffee; ice cream snow/cones; yogurt/cream cheese; potato, plantain, and tortilla chips; corn puffs, popcorn, pork rinds, peanuts/seeds, sauces/dips, and baked goods; and other carbonated and non-carbonated, and dairy beverages. It sells its products under the Coca-Cola Company, Aybal, DASANI, Ciel, Cepita Del Valle, Del Valle, Aquarius, Minute Maid, POWERADE, Fuze Tea, Ingenio Famaillá, Dulna, El Manjar Toni, Golos, Lato, BLaK, DUNKIN´DONUTS, Toni, Santa Clara, fairlife, Topsy, Tortolines, Prispas, Enre2, Tostitos, Bony, La Abeja, Bokados, Inalecsa, and Wise and Deep River brand names. The company sells its non-alcoholic beverages under the Coca-Cola Company brand; and snacks under the Bokados, Wise, Deep River, and other brands. Arca Continental, S.A.B. de C.V. is based in Monterrey, Mexico.