Cott (NYSE: COT) and Embotelladora Andina (NYSE:AKO.B) 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 profitability, valuation, analyst recommendations, dividends, risk, institutional ownership and earnings.

Valuation & Earnings

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This table compares Cott and Embotelladora Andina’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cott $2.27 billion 0.90 -$1.40 million $0.07 208.43
Embotelladora Andina $2.85 billion 0.84 $176.75 million $1.15 26.31

Embotelladora Andina has higher revenue and earnings than Cott. Embotelladora Andina is trading at a lower price-to-earnings ratio than Cott, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Cott has a beta of 0.8, meaning that its stock price is 20% less volatile than the S&P 500. Comparatively, Embotelladora Andina has a beta of 0.08, meaning that its stock price is 92% less volatile than the S&P 500.

Profitability

This table compares Cott and Embotelladora Andina’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cott -0.05% 0.23% 0.05%
Embotelladora Andina 6.40% 14.25% 5.61%

Analyst Ratings

This is a breakdown of current recommendations and price targets for Cott and Embotelladora Andina, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cott 0 4 4 0 2.50
Embotelladora Andina 1 0 0 0 1.00

Cott currently has a consensus target price of $17.33, indicating a potential upside of 18.75%. Embotelladora Andina has a consensus target price of $25.00, indicating a potential downside of 17.38%. Given Cott’s stronger consensus rating and higher possible upside, research analysts plainly believe Cott is more favorable than Embotelladora Andina.

Insider & Institutional Ownership

6.1% of Embotelladora Andina shares are owned by institutional investors. 3.0% of Cott 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.

Dividends

Cott pays an annual dividend of $0.24 per share and has a dividend yield of 1.6%. Embotelladora Andina pays an annual dividend of $0.74 per share and has a dividend yield of 2.4%. Cott pays out 342.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Embotelladora Andina pays out 64.3% of its earnings in the form of a dividend. Embotelladora Andina is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Embotelladora Andina beats Cott on 9 of the 16 factors compared between the two stocks.

Cott Company Profile

Cott Corporation, together with its subsidiaries, operates as a route based service company in North America and Europe. It operates in three segments: Route Based Services; Coffee, Tea and Extract Solutions; and All Other. The company's product portfolio includes bottled water, coffee, brewed tea, water dispensers, coffee and tea brewers, specialty coffee, liquid coffee or tea concentrate, single cup coffee, cold brewed coffee, iced blend coffee or tea beverages, blended teas, hot tea, sparkling tea, coffee or tea extract solutions, filtration equipment, hot chocolate, soups, malt drinks, creamers/whiteners, cereals, beverage concentrates, and mineral water. It provides its services to residences, businesses, restaurant chains, hotels and motels, small and large retailers, and healthcare facilities. The company serves approximately 2.4 million customers or delivery points through its platform, sales and distribution facilities, and fleets, as well as through wholesalers and distributors. Cott Corporation was incorporated in 1955 and is based in Mississauga, Canada.

Embotelladora Andina Company Profile

Embotelladora Andina S.A. (Andina) is a bottler of Coca-Cola trademark beverages in Latin America. The Company operates in four segments: Chile, Brazil, Argentina and Paraguay. It produces and distributes fruit juices, other fruit-flavored beverages and mineral and purified water in Chile, Argentina and Paraguay under trademarks owned by The Coca-Cola Company. The Company produces, markets and distributes the Coca-Cola trademark beverages and brands licensed from third-parties throughout its franchise territories. It manufactures polyethylene terephthalate (PET) bottles primarily for its own use in the packaging of Coca-Cola soft drinks in Chile and Argentina. In Brazil, it produces tea and juices for Leao Alimentos e Industria Ltda. It also distributes non-carbonated beverages in Brazil, such as tea, fruit juices, energy drinks, sport drinks and waters. It distributes beer in Brazil under the brands Amstel, Bavaria, Birra Moretti, Dos Equis (XX), Edelweiss, Heineken and Kaiser.

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