Contrasting Coffee (NASDAQ:JVA) and Keurig Dr Pepper (NASDAQ:KDP)

Keurig Dr Pepper (NASDAQ:KDP) and Coffee (NASDAQ:JVA) are both consumer staples companies, but which is the superior stock? We will compare the two businesses based on the strength of their earnings, risk, valuation, profitability, dividends, analyst recommendations and institutional ownership.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Keurig Dr Pepper and Coffee, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Keurig Dr Pepper	0	3	11	0	2.79
Coffee	0	0	0	0	0.00

Keurig Dr Pepper presently has a consensus price target of $38.38, suggesting a potential upside of 40.96%. Given Keurig Dr Pepper’s stronger consensus rating and higher probable upside, research analysts clearly believe Keurig Dr Pepper is more favorable than Coffee.

Risk & Volatility

Keurig Dr Pepper has a beta of 0.47, suggesting that its stock price is 53% less volatile than the S&P 500. Comparatively, Coffee has a beta of 1.35, suggesting that its stock price is 35% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Keurig Dr Pepper	9.75%	11.05%	5.09%
Coffee	4.35%	13.87%	10.11%

Insider & Institutional Ownership

94.0% of Keurig Dr Pepper shares are owned by institutional investors. 0.4% of Keurig Dr Pepper shares are owned by company insiders. Comparatively, 21.6% of Coffee shares are owned by company 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 Keurig Dr Pepper and Coffee”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Keurig Dr Pepper	$15.35 billion	2.41	$1.44 billion	$1.12	24.31
Coffee	$78.56 million	0.31	$2.22 million	$0.64	6.67

Keurig Dr Pepper has higher revenue and earnings than Coffee. Coffee 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 Coffee on 10 of the 14 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 Coffee

Coffee Holding Co., Inc. engages in manufacturing, roasting, packaging, marketing, and distributing roasted and blended coffees in the United States, Australia, Canada, England, and China. It offers wholesale green coffee products, including unroasted raw beans that are sold to large, medium, and small roasters, as well as coffee shop operators; and roasts, blends, packages, and sells coffee under private labels in cans, brick packages, and instants of various sizes. The company also roasts and blends company label branded coffee to supermarkets, wholesalers, and individually owned stores; and sells tabletop coffee roasting equipment, instant coffees, and tea products for its customers. Its coffee brands include Cafe Caribe, Don Manuel, S&W, Cafe Supremo, Via Roma, Premier Roasters, and Harmony Bay. The company was formerly known as Transpacific International Group Corp and changed its name to Coffee Holding Co., Inc. in April 1998. Coffee Holding Co., Inc. was founded in 1971 and is headquartered in Staten Island, New York.