Comparing Embotelladora Andina (NYSE:AKO.B) and Pernod Ricard (OTCMKTS:PDRDF)

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

Dividends

Pernod Ricard pays an annual dividend of C$1.67 per share and has a dividend yield of 2.1%. Embotelladora Andina pays an annual dividend of $0.74 per share and has a dividend yield of 2.3%. Pernod Ricard pays out 43.7% of its earnings in the form of a dividend. Embotelladora Andina pays out 36.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Embotelladora Andina is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Pernod Ricard	N/A	N/A	N/A
Embotelladora Andina	8.46%	23.59%	8.70%

Insider & Institutional Ownership

39.1% of Pernod Ricard shares are held by institutional investors. Comparatively, 1.6% of Embotelladora Andina shares are held by institutional investors. 0.0% of Embotelladora Andina shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Pernod Ricard and Embotelladora Andina”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pernod Ricard	N/A	N/A	N/A	C$3.82	21.26
Embotelladora Andina	$3.52 billion	1.41	$295.57 million	$2.05	15.38

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

Analyst Recommendations

This is a summary of recent ratings for Pernod Ricard and Embotelladora Andina, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pernod Ricard	2	0	0	0	1.00
Embotelladora Andina	0	1	0	1	3.00

Summary

Embotelladora Andina beats Pernod Ricard on 9 of the 12 factors compared between the two stocks.

About Pernod Ricard

Pernod Ricard SA produces and sells wines and spirits worldwide. The company offers whiskey, vodka, gin, rum, liqueur and bitters, champagne, tequila and mezcal, and aperitif under the brands 100 Pipers, Aberlour, Absolut, Absolut Elyx, Altos, ARARAT, Augier, Avion, Ballantine's, Becherovka, Beefeater, Blenders Pride, Brancott Estate, Campo Viejo, Ceder's, Chivas, Church Road, Clan Campbell, Del Maguey, George Wyndham, Green Spot, Havana Club, Imperial, Imperial Blue, Italicus, J.P. Wiser's, Jacob's Creek, Jameson, Jefferson's, Kahlúa, Kenwood, KI NO BI, Lillet, Long John, L'Orbe, Lot No. 40, Malfy, Malibu, Martell, Method & Madness, Midleton Very Rare, Minttu, Monkey 47, Mumm, Olmeca, Ostoya, Passport Scotch, Pastis 51, Pernod, Perrier-Jouët, Plymouth Gin, Powers, Rabbit Hole, Ramazzotti, Redbreast, Ricard, Royal Salute, Royal Stag, Scapa, Seagram's Gin, Secret Speyside, Smooth Ambler, Something Special, St Hugo, Stoneleigh, Suze, The Glenlivet, TX, Wyborowa, and Ysios. It also provides non-alcoholic beverages under the brands Ceder's, Suze Tonic 0%, Cinzano Spritz 0%, Pacific, Campo Viejo Sparkling 0%, and Jacob's Creek Unvined. Pernod Ricard SA was founded in 1805 and is headquartered in Paris, France.

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.