Luckin Coffee (OTCMKTS:LKNCY – Get Free Report) and Compania Cervecerias Unidas (NYSE:CCU – Get Free Report) 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, profitability, institutional ownership, dividends, earnings and analyst recommendations.
Insider and Institutional Ownership
0.5% of Luckin Coffee shares are held by institutional investors. Comparatively, 24.1% of Compania Cervecerias Unidas shares are held by institutional investors. 2.7% of Luckin Coffee shares are held by insiders. Comparatively, 8.4% of Compania Cervecerias Unidas shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Analyst Recommendations
This is a summary of current ratings for Luckin Coffee and Compania Cervecerias Unidas, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Luckin Coffee | 0 | 0 | 1 | 3 | 3.75 |
| Compania Cervecerias Unidas | 3 | 1 | 0 | 0 | 1.25 |
Profitability
This table compares Luckin Coffee and Compania Cervecerias Unidas’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Luckin Coffee | 6.78% | 24.91% | 12.44% |
| Compania Cervecerias Unidas | 3.71% | 6.77% | 3.06% |
Earnings & Valuation
This table compares Luckin Coffee and Compania Cervecerias Unidas”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Luckin Coffee | $7.03 billion | 1.39 | $513.88 million | $1.68 | 20.24 |
| Compania Cervecerias Unidas | $3.06 billion | 0.63 | $128.87 million | $0.62 | 16.80 |
Luckin Coffee has higher revenue and earnings than Compania Cervecerias Unidas. Compania Cervecerias Unidas is trading at a lower price-to-earnings ratio than Luckin Coffee, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Luckin Coffee has a beta of -0.36, meaning that its share price is 136% less volatile than the S&P 500. Comparatively, Compania Cervecerias Unidas has a beta of 0.53, meaning that its share price is 47% less volatile than the S&P 500.
Summary
Luckin Coffee beats Compania Cervecerias Unidas on 12 of the 15 factors compared between the two stocks.
About Luckin Coffee
Luckin Coffee Inc. offers retail services of freshly brewed drinks, and pre-made food and beverage items in the People's Republic of China. It offers hot and iced freshly brewed coffee, such as Americano, Latte, Cappuccino, Macchiato, Flat White, and Mocha, as well as specialty coffee based on market and seasonal trends; coconut milk latte products; tea drinks; pre-made beverages; and pre-made food items, such as pastries, sandwiches, and snacks. In addition, the company offers Luckin Pop premium instant coffee and inspirational cups through mobile apps and e-commerce platforms. It operates pick-up stores, relax stores, and delivery kitchens under the Luckin brand, as well as Luckin mobile app, Weixin mini-program, and other third-party platforms for third-party payment channels. Further, the company offers technical and consultation services; and manufactures materials for products. Luckin Coffee Inc. was incorporated in 2017 and is headquartered in Xiamen, the People's Republic of China.
About Compania Cervecerias Unidas
Compañía Cervecerías Unidas S.A. operates as a beverage company in Chile, Argentina, Bolivia, Colombia, Paraguay, and Uruguay. The company operates through three segments: Chile, International Business, and Wine. It produces and sells alcoholic and non-alcoholic beer under proprietary and licensed brands, as well as distributes Pernod Ricard products in non-supermarket retail stores. The company also produces and sells non-alcoholic beverages, including carbonated soft drinks, nectars and juices, sports and energy drinks, and ice tea; and mineral, purified, and flavored bottled water, as well as ready-to-mix products with instant powder drinks. In addition, it is involved in the production and distribution of pisco, cocktails, rum, flavored alcoholic beverages, gin, and cider. The company serves small and medium-sized retail outlets; retail establishments, such as restaurants, hotels, and bars; wholesalers; and supermarket chains. It also exports its products to Europe, Latin America, the United States, Canada, Asia, Oceania, and internationally. The company was founded in 1850 and is based in Santiago, Chile. Compañía Cervecerías Unidas S.A. is a subsidiary of Inversiones y Rentas S.A.
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