LVMH Moet Hennessy Louis Vuitton (OTCMKTS: LVMUY) and The Coca-Cola (NYSE:KO) are both large-cap consumer staples companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, profitability, earnings, risk, analyst recommendations, institutional ownership and dividends.

Analyst Ratings

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This is a summary of current ratings and target prices for LVMH Moet Hennessy Louis Vuitton and The Coca-Cola, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
LVMH Moet Hennessy Louis Vuitton 0 2 2 0 2.50
The Coca-Cola 2 10 11 0 2.39

The Coca-Cola has a consensus price target of $49.04, indicating a potential upside of 10.23%. Given The Coca-Cola’s higher probable upside, analysts clearly believe The Coca-Cola is more favorable than LVMH Moet Hennessy Louis Vuitton.

Profitability

This table compares LVMH Moet Hennessy Louis Vuitton and The Coca-Cola’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
LVMH Moet Hennessy Louis Vuitton N/A N/A N/A
The Coca-Cola 3.52% 38.36% 9.18%

Institutional and Insider Ownership

0.4% of LVMH Moet Hennessy Louis Vuitton shares are owned by institutional investors. Comparatively, 66.1% of The Coca-Cola shares are owned by institutional investors. 1.5% of The Coca-Cola shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares LVMH Moet Hennessy Louis Vuitton and The Coca-Cola’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
LVMH Moet Hennessy Louis Vuitton $48.16 billion 3.64 $5.80 billion $2.30 30.03
The Coca-Cola $35.41 billion 5.36 $1.25 billion $1.91 23.29

LVMH Moet Hennessy Louis Vuitton has higher revenue and earnings than The Coca-Cola. The Coca-Cola is trading at a lower price-to-earnings ratio than LVMH Moet Hennessy Louis Vuitton, indicating that it is currently the more affordable of the two stocks.

Dividends

LVMH Moet Hennessy Louis Vuitton pays an annual dividend of $0.68 per share and has a dividend yield of 1.0%. The Coca-Cola pays an annual dividend of $1.56 per share and has a dividend yield of 3.5%. LVMH Moet Hennessy Louis Vuitton pays out 29.6% of its earnings in the form of a dividend. The Coca-Cola pays out 81.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. The Coca-Cola has raised its dividend for 55 consecutive years. The Coca-Cola is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Risk & Volatility

LVMH Moet Hennessy Louis Vuitton has a beta of 1.02, suggesting that its stock price is 2% more volatile than the S&P 500. Comparatively, The Coca-Cola has a beta of 0.72, suggesting that its stock price is 28% less volatile than the S&P 500.

Summary

The Coca-Cola beats LVMH Moet Hennessy Louis Vuitton on 10 of the 16 factors compared between the two stocks.

About LVMH Moet Hennessy Louis Vuitton

LVMH Moet Hennessy Louis Vuitton SE is a luxury goods company. Its business activities are divided into various business groups, including Wines & Spirits, Fashion & Leather Goods, Perfumes & Cosmetics, Watches & Jewelry, Selective retailing and Other activities. The Company has approximately 70 brands and over 3,950 stores around the world. It produces still and sparkling wines from various wine-growing regions, as well as whiskey. The Fashion & Leather Goods business group includes brands, such as Louis Vuitton, Fendi, Donna Karan, Loewe, Marc Jacobs, Celine and Edun. It focuses on the perfumes, make-up and skincare business, and offers a range of brands, including Christian Dior, Guerlain and Kenzo. The Watches & Jewelry sector operates in two segments: high-quality watchmaking, and jewelry and high jewelry. Its Selective Retailing companies operate in Europe, North America, Asia and the Middle East. Its other activities include Les Echos group, Royal Van Lent and Cheval Blanc.

About The Coca-Cola

The Coca-Cola Company, a beverage company, manufactures and distributes various nonalcoholic beverages worldwide. The company provides water, enhanced water, and sports drinks; juices; juice, dairy, and plant?based beverages; teas and coffees; and energy drinks. It also offers concentrates, syrups, beverage bases, source waters, and powders/minerals, as well as fountain syrups to fountain retailers, such as restaurants and convenience stores. The company sells its products primarily under the Coca-Cola, Diet Coke/Coca-Cola Light, Coca-Cola Zero Sugar, Fanta, Sprite, Minute Maid, Georgia, Powerade, Del Valle, Schweppes, Aquarius, Minute Maid Pulpy, Dasani, Simply, Glacéau Vitaminwater, Gold Peak, FUZE TEA, Glacéau Smartwater, Ice Dew, I LOHAS, and Ayataka brand names. The Coca-Cola Company offers its beverage products through a network of company-owned or controlled bottling and distribution operators, as well as through independent bottling partners, distributors, wholesalers, and retailers. The company was founded in 1886 and is headquartered in Atlanta, Georgia.

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