Analyzing CocaCola (NYSE:KO) and Alkaline Water (NASDAQ:WTER)

Alkaline Water (NASDAQ:WTER) and CocaCola (NYSE:KO) are both consumer staples companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, risk, dividends, institutional ownership, analyst recommendations, profitability and earnings.

Risk and Volatility

Alkaline Water has a beta of 8.87, meaning that its share price is 787% more volatile than the S&P 500. Comparatively, CocaCola has a beta of 0.33, meaning that its share price is 67% less volatile than the S&P 500.

Institutional and Insider Ownership

3.8% of Alkaline Water shares are owned by institutional investors. Comparatively, 70.3% of CocaCola shares are owned by institutional investors. 4.1% of Alkaline Water shares are owned by company insiders. Comparatively, 0.9% of CocaCola shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Alkaline Water and CocaCola’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Alkaline Water	N/A	N/A	N/A
CocaCola	28.56%	39.38%	13.18%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Alkaline Water and CocaCola, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alkaline Water	0	0	0	0	0.00
CocaCola	0	3	15	0	2.83

CocaCola has a consensus price target of $95.76, suggesting a potential upside of 8.89%. Given CocaCola’s stronger consensus rating and higher probable upside, analysts plainly believe CocaCola is more favorable than Alkaline Water.

Valuation and Earnings

This table compares Alkaline Water and CocaCola”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alkaline Water	$62.39 million	0.01	-$12.64 million	($0.40)	-0.04
CocaCola	$47.94 billion	7.89	$13.11 billion	$3.33	26.41

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

Summary

CocaCola beats Alkaline Water on 12 of the 14 factors compared between the two stocks.

About Alkaline Water

The Alkaline Water Company Inc. produces, distributes, and markets bottled alkaline water in the United States. The company also offers bottled alkaline water in various volumes under the Alkaline88 brand. In addition, it engages in selling of sports drinks under the Alkaline88 Sports Drinks brand. The company sells its products through brokers and distributors to retailers, such as convenience stores, natural food products stores, large ethnic markets, and national retailers, as well as e-commerce websites. The Alkaline Water Company Inc. was incorporated in 2011 and is headquartered in Scottsdale, Arizona.

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.