Financial Contrast: Compania Cervecerias Unidas (NYSE:CCU) and Luckin Coffee (OTCMKTS:LKNCY)

Compania Cervecerias Unidas (NYSE:CCU) and Luckin Coffee (OTCMKTS:LKNCY) are both mid-cap consumer staples companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, valuation, risk, dividends, profitability and analyst recommendations.

Valuation & Earnings

This table compares Compania Cervecerias Unidas and Luckin Coffee”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Compania Cervecerias Unidas	$3.06 billion	0.67	$128.87 million	$0.62	17.92
Luckin Coffee	$7.03 billion	1.35	$513.88 million	$1.68	19.64

Luckin Coffee has higher revenue and earnings than Compania Cervecerias Unidas. Compania Cervecerias Unidas is trading at a lower price-to-earnings ratio than Luckin Coffee, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Compania Cervecerias Unidas and Luckin Coffee, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Compania Cervecerias Unidas	3	1	0	0	1.25
Luckin Coffee	0	0	1	3	3.75

Compania Cervecerias Unidas presently has a consensus price target of $11.50, suggesting a potential upside of 3.48%. Luckin Coffee has a consensus price target of $46.87, suggesting a potential upside of 42.02%. Given Luckin Coffee’s stronger consensus rating and higher probable upside, analysts clearly believe Luckin Coffee is more favorable than Compania Cervecerias Unidas.

Institutional & Insider Ownership

24.1% of Compania Cervecerias Unidas shares are owned by institutional investors. Comparatively, 0.5% of Luckin Coffee shares are owned by institutional investors. 8.4% of Compania Cervecerias Unidas shares are owned by company insiders. Comparatively, 2.7% of Luckin Coffee shares are owned 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.

Risk & Volatility

Compania Cervecerias Unidas has a beta of 0.53, meaning that its stock price is 47% less volatile than the S&P 500. Comparatively, Luckin Coffee has a beta of -0.36, meaning that its stock price is 136% less volatile than the S&P 500.

Profitability

This table compares Compania Cervecerias Unidas and Luckin Coffee’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Compania Cervecerias Unidas	3.71%	6.77%	3.06%
Luckin Coffee	6.78%	24.91%	12.44%

Summary

Luckin Coffee beats Compania Cervecerias Unidas on 12 of the 15 factors compared between the two stocks.

About Compania Cervecerias Unidas

Compañía Cervecerías Unidas S.A. operates as a beverage company in Chile, Argentina, Bolivia, Colombia, Paraguay, and Uruguay. The company operates through three segments: Chile, International Business, and Wine. It produces and sells alcoholic and non-alcoholic beer under proprietary and licensed brands, as well as distributes Pernod Ricard products in non-supermarket retail stores. The company also produces and sells non-alcoholic beverages, including carbonated soft drinks, nectars and juices, sports and energy drinks, and ice tea; and mineral, purified, and flavored bottled water, as well as ready-to-mix products with instant powder drinks. In addition, it is involved in the production and distribution of pisco, cocktails, rum, flavored alcoholic beverages, gin, and cider. The company serves small and medium-sized retail outlets; retail establishments, such as restaurants, hotels, and bars; wholesalers; and supermarket chains. It also exports its products to Europe, Latin America, the United States, Canada, Asia, Oceania, and internationally. The company was founded in 1850 and is based in Santiago, Chile. Compañía Cervecerías Unidas S.A. is a subsidiary of Inversiones y Rentas S.A.

About Luckin Coffee

Luckin Coffee Inc. offers retail services of freshly brewed drinks, and pre-made food and beverage items in the People's Republic of China. It offers hot and iced freshly brewed coffee, such as Americano, Latte, Cappuccino, Macchiato, Flat White, and Mocha, as well as specialty coffee based on market and seasonal trends; coconut milk latte products; tea drinks; pre-made beverages; and pre-made food items, such as pastries, sandwiches, and snacks. In addition, the company offers Luckin Pop premium instant coffee and inspirational cups through mobile apps and e-commerce platforms. It operates pick-up stores, relax stores, and delivery kitchens under the Luckin brand, as well as Luckin mobile app, Weixin mini-program, and other third-party platforms for third-party payment channels. Further, the company offers technical and consultation services; and manufactures materials for products. Luckin Coffee Inc. was incorporated in 2017 and is headquartered in Xiamen, the People's Republic of China.