Analyzing Zevia PBC (NYSE:ZVIA) and CocaCola (NYSE:KO)

Zevia PBC (NYSE:ZVIA) and CocaCola (NYSE:KO) are both consumer staples companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, institutional ownership, valuation, profitability, analyst recommendations, earnings and dividends.

Earnings and Valuation

This table compares Zevia PBC and CocaCola”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Zevia PBC	$155.05 million	1.19	-$20.00 million	($0.22)	-11.16
CocaCola	$47.06 billion	6.04	$10.63 billion	$2.82	23.44

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

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Zevia PBC and CocaCola, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Zevia PBC	0	2	2	0	2.50
CocaCola	0	0	14	1	3.07

Zevia PBC currently has a consensus target price of $4.61, indicating a potential upside of 87.88%. CocaCola has a consensus target price of $76.93, indicating a potential upside of 16.40%. Given Zevia PBC’s higher probable upside, equities research analysts plainly believe Zevia PBC is more favorable than CocaCola.

Profitability

This table compares Zevia PBC and CocaCola’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Zevia PBC	-8.97%	-27.86%	-17.51%
CocaCola	25.89%	44.91%	12.23%

Insider & Institutional Ownership

53.2% of Zevia PBC shares are held by institutional investors. Comparatively, 70.3% of CocaCola shares are held by institutional investors. 11.1% of Zevia PBC shares are held by company insiders. Comparatively, 1.0% of CocaCola shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Volatility & Risk

Zevia PBC has a beta of 0.88, suggesting that its share price is 12% less volatile than the S&P 500. Comparatively, CocaCola has a beta of 0.43, suggesting that its share price is 57% less volatile than the S&P 500.

Summary

CocaCola beats Zevia PBC on 12 of the 15 factors compared between the two stocks.

About Zevia PBC

Zevia PBC, a beverage company, develops, markets, sells, and distributes various carbonated beverages in the United States and Canada. It offers soda, energy drinks, organic tea, and kidz drinks. The company offers its products through a network of food, drug, warehouse club, mass, natural, convenience, and e-commerce channels, as well as grocery distributors and natural product stores and specialty outlets. It provides its products under the Zevia brand name. The company was founded in 2007 and is headquartered in Encino, California.

About CocaCola

The Coca-Cola Company, a beverage company, manufactures, markets, and sells various nonalcoholic beverages worldwide. The company provides sparkling soft drinks, sparkling flavors; water, sports, coffee, and tea; juice, value-added dairy, and plant-based beverages; and other beverages. It also offers beverage concentrates and syrups, as well as fountain syrups to fountain retailers, such as restaurants and convenience stores. The company sells its products under the Coca-Cola, Diet Coke/Coca-Cola Light, Coca-Cola Zero Sugar, caffeine free Diet Coke, Cherry Coke, Fanta Orange, Fanta Zero Orange, Fanta Zero Sugar, Fanta Apple, Sprite, Sprite Zero Sugar, Simply Orange, Simply Apple, Simply Grapefruit, Fresca, Schweppes, Thums Up, Aquarius, Ayataka, BODYARMOR, Ciel, Costa, Dasani, dogadan, FUZE TEA, Georgia, glacéau smartwater, glacéau vitaminwater, Gold Peak, Ice Dew, I LOHAS, Powerade, Topo Chico, AdeS, Del Valle, fairlife, innocent, Minute Maid, and Minute Maid Pulpy brands. It operates through a network of independent bottling partners, distributors, wholesalers, and retailers, as well as through bottling and distribution operators. The company was founded in 1886 and is headquartered in Atlanta, Georgia.