Coca-Cola vs LVMH Which Performs Better?

Coca-Cola and LVMH are two iconic companies in the beverage and luxury goods industries, respectively. While Coca-Cola boasts a long history of success and brand recognition, LVMH is known for its high-end products and prestigious image. Both companies have experienced fluctuations in their stock prices over the years due to economic factors and market trends. Investors often compare the performance of Coca-Cola versus LVMH stocks to determine which company offers the best investment potential.

Coca-Cola or LVMH?

When comparing Coca-Cola and LVMH, 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 LVMH.

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 3.8%, while LVMH has a dividend yield of 2.44%. 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, LVMH reports a 5-year dividend growth of 16.19% year and a payout ratio of 48.75%.

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 26.17 and LVMH's P/E ratio at 20.55. 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 10.27 while LVMH's P/B ratio is 4.42.

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 LVMH's is 0.85%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Coca-Cola's ROE at 39.75% and LVMH's ROE at 22.19%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $63.12 for Coca-Cola and $601.00 for LVMH. Over the past year, Coca-Cola's prices ranged from $56.70 to $73.53, with a yearly change of 29.68%. LVMH's prices fluctuated between $600.83 and $958.69, with a yearly change of 59.56%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.