Critical Contrast: Fomento Economico Mexicano (NYSE:FMX) & Baristas Coffee (OTCMKTS:BCCI)

Fomento Economico Mexicano (NYSE:FMX) and Baristas Coffee (OTCMKTS:BCCI) are both consumer staples companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, institutional ownership, risk, earnings, analyst recommendations, dividends and profitability.

Analyst Ratings

This is a breakdown of recent ratings for Fomento Economico Mexicano and Baristas Coffee, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fomento Economico Mexicano	1	4	4	0	2.33
Baristas Coffee	0	0	0	0	0.00

Fomento Economico Mexicano currently has a consensus price target of $101.97, indicating a potential upside of 6.75%. Given Fomento Economico Mexicano’s stronger consensus rating and higher probable upside, analysts plainly believe Fomento Economico Mexicano is more favorable than Baristas Coffee.

Volatility & Risk

Fomento Economico Mexicano has a beta of 0.72, indicating that its share price is 28% less volatile than the S&P 500. Comparatively, Baristas Coffee has a beta of 0.71, indicating that its share price is 29% less volatile than the S&P 500.

Earnings and Valuation

This table compares Fomento Economico Mexicano and Baristas Coffee”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fomento Economico Mexicano	$42.88 billion	0.80	$1.28 billion	$2.94	32.49
Baristas Coffee	$180,000.00	0.11	-$660,000.00	N/A	N/A

Fomento Economico Mexicano has higher revenue and earnings than Baristas Coffee.

Profitability

This table compares Fomento Economico Mexicano and Baristas Coffee’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fomento Economico Mexicano	2.60%	5.32%	2.31%
Baristas Coffee	N/A	N/A	N/A

Insider and Institutional Ownership

61.0% of Fomento Economico Mexicano shares are held by institutional investors. 5.7% of Fomento Economico Mexicano shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Fomento Economico Mexicano beats Baristas Coffee on 12 of the 12 factors compared between the two stocks.

About Fomento Economico Mexicano

Fomento Económico Mexicano, S.A.B. de C.V., through its subsidiaries, operates as a bottler of Coca-Cola trademark beverages. The company produces, markets, and distributes Coca-Cola trademark beverages in Mexico, Guatemala, Nicaragua, Costa Rica, Panama, Colombia, Venezuela, Brazil, Argentina, and Uruguay. It also operates small-box retail chain stores in Mexico, Colombia, Peru, Chile, and Brazil under the OXXO name; retail service stations for fuels, motor oils, lubricants, and car care products under the OXXO GAS name in Mexico; and drugstores in Chile, Colombia, Ecuador, and Mexico under the Cruz Verde, Fybeca, SanaSana, YZA, La Moderna, and Farmacon names. In addition, the company is involved in the production and distribution of collers, commercial refrigeration equipment, plastic boxes, food processing, and preservation and weighing equipment; and provision of logistic transportation, distribution and maintenance, point-of-sale refrigeration, and plastics solutions, as well as distribution platform for cleaning products and consumables. Further, it operates small-box retail and food convenience chain stores in Switzerland, Germany, Austria, Luxembourg, and the Netherlands under the k kiosk, Brezelkönig, BackWerk, Ditsch, Press & Books, avec, Caffè Spettacolo, and ok.) names, as well as pretzels under the Ditsch name. The company was founded in 1890 and is based in Monterrey, Mexico.

About Baristas Coffee

Barista Coffee Company, Inc., doing business as Baristas, operates as a specialty drive-through beverage retailer in the United States. The company offers hot and cold beverages, including specialty coffees, blended teas, and other custom drinks, as well as smoothies, fresh-baked pastries, and other confections. It also provides beverages, such as hot apple cider, hot chocolate, frozen coffees, and other products. In addition, the company promotes and sells Baristas merchandise, calendars, mugs, T-shirts, and hats. Barista Coffee Company, Inc. also sells its merchandise and other novelties through its baristas.tv Website. The company was formerly known as Innovative Communications, Inc. and changed its name to Barista Coffee Company, Inc. in May 2010. Barista Coffee Company, Inc. was founded in 1996 and is headquartered in Kent, Washington.