Analyzing Better Choice (NASDAQ:BTTR) and The Coca-Cola (NYSE:KO)

The Coca-Cola (NYSE:KO) and Better Choice (NASDAQ:BTTR) are both consumer staples companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, valuation, analyst recommendations, institutional ownership, profitability, risk and earnings.

Analyst Ratings

This is a summary of recent ratings and target prices for The Coca-Cola and Better Choice, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
The Coca-Cola 0 5 10 0 2.67
Better Choice 0 0 3 0 3.00

The Coca-Cola currently has a consensus price target of $61.53, indicating a potential upside of 10.49%. Better Choice has a consensus price target of $8.00, indicating a potential upside of 115.05%. Given Better Choice’s stronger consensus rating and higher possible upside, analysts plainly believe Better Choice is more favorable than The Coca-Cola.

Insider & Institutional Ownership

66.7% of The Coca-Cola shares are owned by institutional investors. Comparatively, 11.6% of Better Choice shares are owned by institutional investors. 1.0% of The Coca-Cola shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares The Coca-Cola and Better Choice’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
The Coca-Cola 22.19% 44.17% 10.68%
Better Choice -46.28% N/A -85.70%

Volatility and Risk

The Coca-Cola has a beta of 0.62, suggesting that its share price is 38% less volatile than the S&P 500. Comparatively, Better Choice has a beta of -0.96, suggesting that its share price is 196% less volatile than the S&P 500.

Earnings and Valuation

This table compares The Coca-Cola and Better Choice’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
The Coca-Cola $33.01 billion 7.27 $7.75 billion $1.95 28.56
Better Choice $42.59 million 2.58 -$59.33 million ($1.21) -3.07

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

Summary

The Coca-Cola beats Better Choice on 12 of the 14 factors compared between the two stocks.

The Coca-Cola Company Profile

The Coca-Cola Co. is the nonalcoholic beverage company, which engages in the manufacture, market, and sale of non-alcoholic beverages which include sparkling soft drinks, water, enhanced water and sports drinks, juice, dairy and plant-based beverages, tea and coffee and energy drinks. Its brands include Coca-Cola, Diet Coke, Coca-Cola Zero, Fanta, Sprite, Minute Maid, Georgia, Powerade, Del Valle, Schweppes, Aquarius, Minute Maid Pulpy, Dasani, Simply, Glaceau Vitaminwater, Bonaqua, Gold Peak, Fuze Tea, Glaceau Smartwater, and Ice Dew. It operates through the following segments: Europe, Middle East and Africa, Latin America, North America, Asia Pacific, Bottling Investments and Global Ventures. The company was founded by Asa Griggs Candler in 1886 and is headquartered in Atlanta, GA.

Better Choice Company Profile

Better Choice Co., Inc. is an animal health and wellness company. The firm sells dog food, cat food, and treats under the Halo and TruDog brands, which are focused on providing sustainably sourced kibble and canned food derived from real whole meat, and minimally processed raw-diet dog food. Its brands include Trucut, Bona Vida, Orapup, Rawgo, and TruDog. The company was founded on January 3, 2001 and is headquartered in Oldsmar, FL.

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