Ambev (NYSE:ABEV) vs. Coca-Cola Consolidated (NASDAQ:COKE) Head-To-Head Review

Ambev (NYSE:ABEV) and Coca-Cola Consolidated (NASDAQ:COKE) are both large-cap consumer staples companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, institutional ownership, analyst recommendations, dividends, valuation, earnings and profitability.

Insider and Institutional Ownership

8.1% of Ambev shares are owned by institutional investors. Comparatively, 48.2% of Coca-Cola Consolidated shares are owned by institutional investors. 0.0% of Coca-Cola Consolidated shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Ambev and Coca-Cola Consolidated’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ambev	18.47%	17.48%	11.14%
Coca-Cola Consolidated	7.15%	-1,041.59%	13.71%

Dividends

Ambev pays an annual dividend of $0.03 per share and has a dividend yield of 0.9%. Coca-Cola Consolidated pays an annual dividend of $1.00 per share and has a dividend yield of 0.5%. Ambev pays out 15.0% of its earnings in the form of a dividend. Coca-Cola Consolidated pays out 13.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Coca-Cola Consolidated has increased its dividend for 2 consecutive years.

Risk & Volatility

Ambev has a beta of 0.58, meaning that its share price is 42% less volatile than the S&P 500. Comparatively, Coca-Cola Consolidated has a beta of 0.55, meaning that its share price is 45% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Ambev and Coca-Cola Consolidated, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ambev	2	3	1	0	1.83
Coca-Cola Consolidated	0	0	1	0	3.00

Ambev currently has a consensus price target of $3.13, indicating a potential downside of 5.79%. Given Ambev’s higher probable upside, analysts clearly believe Ambev is more favorable than Coca-Cola Consolidated.

Valuation and Earnings

This table compares Ambev and Coca-Cola Consolidated”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ambev	$88.27 billion	0.59	$2.78 billion	$0.20	16.62
Coca-Cola Consolidated	$7.23 billion	1.96	$570.58 million	$7.54	28.27

Ambev has higher revenue and earnings than Coca-Cola Consolidated. Ambev is trading at a lower price-to-earnings ratio than Coca-Cola Consolidated, indicating that it is currently the more affordable of the two stocks.

Summary

Coca-Cola Consolidated beats Ambev on 9 of the 16 factors compared between the two stocks.

About Ambev

Ambev S.A., through its subsidiaries, engages in the production, distribution, and sale of beer, draft beer, carbonated soft drinks, malt and food, other alcoholic beverages, and non-alcoholic and non-carbonated products in Brazil, Central America and Caribbean, Latin America South, and Canada. It offers beer primarily under the Skol, Brahma, Antarctica, Brahva, Budweiser, Bud Light, Beck, Leffe, Hoegaarden, Balboa ICE, Balboa, Atlas Golden Light, Atlas, Bucanero, Cristal, Mayabe, Presidente, Presidente Light, Brahma Light, Bohemia, The One, Corona, Modelo Especial, Stella Artois, Quilmes Clásica, Paceña, Taquiña, Huari, Becker, Cusqueña, Michelob Ultra, Busch, Pilsen, Ouro Fino, Bud 66, Banks, Deputy, Patricia, Labatt Blue, Alexander Keith’s, and Kokanee brands. The company also provides carbonated soft drinks, bottled water, isotonic beverages, energy drinks, coconut water, powdered and natural juices, and ready-to-drink teas under the Guaraná Antarctica, Gatorade, H2OH!, Pepsi Black, Lipton Iced Tea, Fusion, Pepsi-Cola, Canada Dry, Squirt, Red Rock, Red Bull, Seven Up, Nutrl, Bud Light Seltzer, Palm Bay, and Mike’s brands. It offers its products through a network of third-party distributors and a direct distribution system. The company was founded in 1885 and is headquartered in São Paulo, Brazil. Ambev S.A. is a subsidiary of Interbrew International B.V.

About Coca-Cola Consolidated

Coca-Cola Consolidated, Inc., together with its subsidiaries, manufactures, markets, and distributes nonalcoholic beverages primarily products of The Coca-Cola Company in the United States. The company offers sparkling beverages; and still beverages, including energy products, as well as noncarbonated beverages comprising bottled water, ready to drink coffee and tea, enhanced water, juices, and sports drinks. It also sells its products to other Coca-Cola bottlers; and post-mix products that are dispensed through equipment, which mixes the fountain syrups with carbonated or still water enabling fountain retailers to sell finished products to consumers in cups or glasses. In addition, the company manufactures and distributes various other beverage brands that include Dr Pepper and Monster Energy. It sells and distributes its products directly to grocery stores, mass merchandise stores, club stores, convenience stores, and drug stores; and restaurants, schools, amusement parks, and recreational facilities, as well as through vending machine outlets. The company was formerly known as Coca-Cola Bottling Co. Consolidated and changed its name to Coca-Cola Consolidated, Inc. in January 2019. Coca-Cola Consolidated, Inc. was incorporated in 1980 and is headquartered in Charlotte, North Carolina.