Coca-Cola vs Coca-Cola FEMSA Which Outperforms?

Coca-Cola and Coca-Cola FEMSA are two well-known beverage companies in the world. While both companies are part of the Coca-Cola family, they operate independently and have their own stocks. Coca-Cola is a global beverage giant with a diversified portfolio, while Coca-Cola FEMSA is the largest franchise bottler of Coca-Cola products in the world. Investors often compare the performance of these two stocks to analyze their financial health and growth potential. Let's delve deeper into the differences and similarities between Coca-Cola and Coca-Cola FEMSA stocks.

Coca-Cola or Coca-Cola FEMSA?

When comparing Coca-Cola and Coca-Cola FEMSA, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Coca-Cola and Coca-Cola FEMSA.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Coca-Cola has a dividend yield of 3.07%, while Coca-Cola FEMSA has a dividend yield of 0.2%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Coca-Cola reports a 5-year dividend growth of 3.36% year and a payout ratio of 78.28%. On the other hand, Coca-Cola FEMSA reports a 5-year dividend growth of 13.40% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Coca-Cola P/E ratio at 26.14 and Coca-Cola FEMSA's P/E ratio at 15.76. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Coca-Cola P/B ratio is 10.26 while Coca-Cola FEMSA's P/B ratio is 2.45.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Coca-Cola has seen a 5-year revenue growth of 0.31%, while Coca-Cola FEMSA's is 0.34%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Coca-Cola's ROE at 39.75% and Coca-Cola FEMSA's ROE at 16.94%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $63.11 for Coca-Cola and $80.59 for Coca-Cola FEMSA. Over the past year, Coca-Cola's prices ranged from $57.47 to $73.53, with a yearly change of 27.95%. Coca-Cola FEMSA's prices fluctuated between $77.02 and $104.38, with a yearly change of 35.52%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.