International Flavors & Fragrances (NYSE:IFF) and Coca-Cola FEMSA (NYSE:KOF) are both consumer staples companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, valuation, dividends, profitability, analyst recommendations, institutional ownership and risk.
Dividends
International Flavors & Fragrances pays an annual dividend of $3.08 per share and has a dividend yield of 2.4%. Coca-Cola FEMSA pays an annual dividend of $2.31 per share and has a dividend yield of 5.1%. International Flavors & Fragrances pays out 49.9% of its earnings in the form of a dividend. Coca-Cola FEMSA pays out 77.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. International Flavors & Fragrances has raised its dividend for 11 consecutive years.
Insider & Institutional Ownership
94.4% of International Flavors & Fragrances shares are held by institutional investors. Comparatively, 8.4% of Coca-Cola FEMSA shares are held by institutional investors. 0.4% of International Flavors & Fragrances shares are held by insiders. Comparatively, 1.0% of Coca-Cola FEMSA shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Analyst Ratings
This is a breakdown of current ratings for International Flavors & Fragrances and Coca-Cola FEMSA, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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International Flavors & Fragrances | 0 | 4 | 8 | 0 | 2.67 |
Coca-Cola FEMSA | 0 | 2 | 0 | 0 | 2.00 |
International Flavors & Fragrances presently has a consensus price target of $141.1167, suggesting a potential upside of 7.81%. Coca-Cola FEMSA has a consensus price target of $50.00, suggesting a potential upside of 10.06%. Given Coca-Cola FEMSA's higher probable upside, analysts clearly believe Coca-Cola FEMSA is more favorable than International Flavors & Fragrances.
Volatility & Risk
International Flavors & Fragrances has a beta of 0.97, indicating that its stock price is 3% less volatile than the S&P 500. Comparatively, Coca-Cola FEMSA has a beta of 0.81, indicating that its stock price is 19% less volatile than the S&P 500.
Profitability
This table compares International Flavors & Fragrances and Coca-Cola FEMSA's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
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International Flavors & Fragrances | 7.44% | 11.00% | 5.10% |
Coca-Cola FEMSA | 4.86% | 8.04% | 3.74% |
Valuation & Earnings
This table compares International Flavors & Fragrances and Coca-Cola FEMSA's revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
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International Flavors & Fragrances | $5.14 billion | 6.33 | $455.87 million | $6.17 | 21.21 |
Coca-Cola FEMSA | $10.11 billion | 0.94 | $642 million | $2.99 | 15.19 |
Coca-Cola FEMSA has higher revenue and earnings than International Flavors & Fragrances. Coca-Cola FEMSA is trading at a lower price-to-earnings ratio than International Flavors & Fragrances, indicating that it is currently the more affordable of the two stocks.
Summary
International Flavors & Fragrances beats Coca-Cola FEMSA on 12 of the 17 factors compared between the two stocks.