Critical Survey: Fomento Economico Mexicano (NYSE:FMX) & Westrock Coffee (NASDAQ:WEST)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Westrock Coffee	-8.58%	-98.07%	-4.26%
Fomento Economico Mexicano	2.09%	5.01%	2.19%

Risk & Volatility

Westrock Coffee has a beta of 0.47, indicating that its stock price is 53% less volatile than the S&P 500. Comparatively, Fomento Economico Mexicano has a beta of 0.46, indicating that its stock price is 54% less volatile than the S&P 500.

Valuation & Earnings

This table compares Westrock Coffee and Fomento Economico Mexicano”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Westrock Coffee	$1.08 billion	0.36	-$80.30 million	($0.98)	-4.07
Fomento Economico Mexicano	$42.88 billion	N/A	$1.28 billion	$2.48	41.37

Fomento Economico Mexicano has higher revenue and earnings than Westrock Coffee. Westrock Coffee is trading at a lower price-to-earnings ratio than Fomento Economico Mexicano, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

45.1% of Westrock Coffee shares are owned by institutional investors. Comparatively, 61.0% of Fomento Economico Mexicano shares are owned by institutional investors. 27.7% of Westrock Coffee shares are owned by company insiders. Comparatively, 5.7% of Fomento Economico Mexicano shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Westrock Coffee and Fomento Economico Mexicano, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Westrock Coffee	1	0	3	0	2.50
Fomento Economico Mexicano	0	5	4	0	2.44

Westrock Coffee currently has a consensus target price of $9.00, indicating a potential upside of 125.56%. Fomento Economico Mexicano has a consensus target price of $101.63, indicating a potential downside of 0.95%. Given Westrock Coffee’s stronger consensus rating and higher probable upside, research analysts plainly believe Westrock Coffee is more favorable than Fomento Economico Mexicano.

Summary

Fomento Economico Mexicano beats Westrock Coffee on 9 of the 13 factors compared between the two stocks.

About Westrock Coffee

Westrock Coffee Company, LLC operates as an integrated coffee, tea, flavors, extracts, and ingredients solutions provider in the United States and internationally. It operates through two segments, Beverage Solutions, and Sustainable Sourcing & Traceability (SS&T). The Beverage Solutions segment provides various packaging, including branded and private label coffee in bags, fractional packs, and single serve cups, as well as extract solutions for applications in cold brew and ready-to-drink offerings. The SS&T segment engages in delivery and settlement of forward sales contracts for green coffee. The company offers coffee sourcing, supply chain management, product development, roasting, packaging, and distribution services to the retail, food service and restaurant, convenience store and travel center, non-commercial account, CPG, and hospitality industries. Westrock Coffee Company, LLC was founded in 2009 and is headquartered in Little Rock, Arkansas.

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.