Financial Analysis: Coca-Cola FEMSA (COCSF) vs. Its Peers

Dividends

Coca-Cola FEMSA pays an annual dividend of $2.90 per share and has a dividend yield of 25.6%. Coca-Cola FEMSA pays out 25.1% of its earnings in the form of a dividend. As a group, “Beverages” companies pay a dividend yield of 3.0% and pay out 49.0% of their earnings in the form of a dividend. Coca-Cola FEMSA is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

Valuation and Earnings

This table compares Coca-Cola FEMSA and its competitors revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Coca-Cola FEMSA	N/A	N/A	0.98
Coca-Cola FEMSA Competitors	$9.56 billion	$883.52 million	11.06

Coca-Cola FEMSA’s competitors have higher revenue and earnings than Coca-Cola FEMSA. Coca-Cola FEMSA is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Institutional and Insider Ownership

2.8% of Coca-Cola FEMSA shares are owned by institutional investors. Comparatively, 36.6% of shares of all “Beverages” companies are owned by institutional investors. 19.1% of shares of all “Beverages” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Coca-Cola FEMSA and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Coca-Cola FEMSA	N/A	N/A	N/A
Coca-Cola FEMSA Competitors	-8.02%	-9.46%	0.17%

Summary

Coca-Cola FEMSA competitors beat Coca-Cola FEMSA on 5 of the 9 factors compared.

Coca-Cola FEMSA Company Profile

Coca-Cola FEMSA, S.A.B. de C.V., a franchise bottler, produces, markets, sells, and distributes Coca-Cola trademark beverages. The company offers sparkling beverages, including colas and flavored sparkling beverages; and waters and other beverages, such as juice drinks, coffee, teas, milk, value-added dairy products, sports and energy drinks, alcoholic beverages, and plant-based drinks. It provides a portfolio of products through retail outlets, wholesale supermarkets, retailers, points-of-sale outlets, and home delivery. In addition, the company distributes and sells Heineken, Estrella Galicia, and Therezópolis beer products in its Brazilian territories. It operates in Mexico, Guatemala, Nicaragua, Costa Rica, Panama, Colombia, Brazil, Argentina, and Uruguay. The company was founded in 1979 and is headquartered in Mexico City, Mexico. Coca-Cola FEMSA, S.A.B. de C.V. is a subsidiary of Fomento Economico Mexicano, S.A.B. de C.V.