Critical Review: Embotelladora Andina (NYSE:AKO.B) versus Zevia PBC (NYSE:ZVIA)

Embotelladora Andina (NYSE:AKO.B) and Zevia PBC (NYSE:ZVIA) are both consumer staples companies, but which is the superior business? We will compare the two companies based on the strength of their risk, profitability, dividends, institutional ownership, valuation, earnings and analyst recommendations.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Embotelladora Andina and Zevia PBC, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Embotelladora Andina	0	1	0	0	2.00
Zevia PBC	1	1	2	0	2.25

Zevia PBC has a consensus target price of $4.50, indicating a potential upside of 267.35%. Given Zevia PBC’s stronger consensus rating and higher possible upside, analysts clearly believe Zevia PBC is more favorable than Embotelladora Andina.

Earnings and Valuation

This table compares Embotelladora Andina and Zevia PBC”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Embotelladora Andina	$3,476.60 billion	0.00	$295.57 million	$2.05	13.95
Zevia PBC	$169.81 million	0.56	-$9.92 million	($0.13)	-9.42

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

Insider & Institutional Ownership

1.6% of Embotelladora Andina shares are held by institutional investors. Comparatively, 53.2% of Zevia PBC shares are held by institutional investors. 0.0% of Embotelladora Andina shares are held by company insiders. Comparatively, 7.7% of Zevia PBC shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Embotelladora Andina	8.46%	23.40%	8.70%
Zevia PBC	-5.34%	-16.92%	-9.56%

Volatility and Risk

Embotelladora Andina has a beta of 0.58, indicating that its stock price is 42% less volatile than the S&P 500. Comparatively, Zevia PBC has a beta of 0.93, indicating that its stock price is 7% less volatile than the S&P 500.

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 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.