Head to Head Analysis: Embotelladora Andina (NYSE:AKO.A) versus Coffee (NASDAQ:JVA)

Embotelladora Andina (NYSE:AKO.A) and Coffee (NASDAQ:JVA) are both consumer staples companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, earnings, institutional ownership, analyst recommendations, valuation, profitability and risk.

Earnings & Valuation

This table compares Embotelladora Andina and Coffee”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Embotelladora Andina	$3,380.92 billion	0.00	$295.57 million	$2.04	11.79
Coffee	$96.28 million	0.26	$1.40 million	$0.34	12.65

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

Analyst Ratings

This is a breakdown of recent ratings and price targets for Embotelladora Andina and Coffee, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Embotelladora Andina	0	0	0	0	0.00
Coffee	0	1	0	0	2.00

Institutional & Insider Ownership

0.1% of Embotelladora Andina shares are held by institutional investors. 0.0% of Embotelladora Andina shares are held by company insiders. Comparatively, 22.1% of Coffee shares are held 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Embotelladora Andina	8.70%	24.47%	8.89%
Coffee	1.88%	6.82%	4.49%

Dividends

Embotelladora Andina pays an annual dividend of $0.67 per share and has a dividend yield of 2.8%. Coffee pays an annual dividend of $0.08 per share and has a dividend yield of 1.9%. Embotelladora Andina pays out 32.8% of its earnings in the form of a dividend. Coffee pays out 23.5% 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.

Volatility and Risk

Embotelladora Andina has a beta of 0.44, suggesting that its share price is 56% less volatile than the S&P 500. Comparatively, Coffee has a beta of 1.41, suggesting that its share price is 41% more volatile than the S&P 500.

Summary

Embotelladora Andina beats Coffee on 8 of the 14 factors compared between the two stocks.

About Embotelladora Andina

Embotelladora Andina S.A., together with its subsidiaries, produces, markets, and distributes Coca-Cola soft drinks in Chile, Brazil, Argentina, and Paraguay. It also offers fruit-flavored beverages, juices, sports and energy drinks, ice tea, and bottled water. Embotelladora Andina S.A. was founded in 1946 and is headquartered in Santiago, Chile.

About Coffee

Coffee Holding Co., Inc. engages in manufacturing, roasting, packaging, marketing, and distributing roasted and blended coffees in the United States, Australia, Canada, England, and China. It offers wholesale green coffee products, including unroasted raw beans that are sold to large, medium, and small roasters, as well as coffee shop operators; and roasts, blends, packages, and sells coffee under private labels in cans, brick packages, and instants of various sizes. The company also roasts and blends company label branded coffee to supermarkets, wholesalers, and individually owned stores; and sells tabletop coffee roasting equipment, instant coffees, and tea products for its customers. Its coffee brands include Cafe Caribe, Don Manuel, S&W, Cafe Supremo, Via Roma, Premier Roasters, and Harmony Bay. The company was formerly known as Transpacific International Group Corp and changed its name to Coffee Holding Co., Inc. in April 1998. Coffee Holding Co., Inc. was founded in 1971 and is headquartered in Staten Island, New York.