Head to Head Review: Suntory Beverage & Food (OTCMKTS:STBFY) and Fomento Económico Mexicano (NYSE:FMX)

Suntory Beverage & Food (OTCMKTS:STBFYGet Free Report) and Fomento Económico Mexicano (NYSE:FMXGet Free Report) are both consumer defensive companies, but which is the better investment? We will compare the two businesses based on the strength of their institutional ownership, profitability, analyst recommendations, dividends, valuation, earnings and risk.

Earnings and Valuation

This table compares Suntory Beverage & Food and Fomento Económico Mexicano’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Suntory Beverage & Food N/A N/A N/A $60.68 0.27
Fomento Económico Mexicano $760.87 billion 0.06 $1.23 billion $10.69 12.68

Fomento Económico Mexicano has higher revenue and earnings than Suntory Beverage & Food. Suntory Beverage & Food is trading at a lower price-to-earnings ratio than Fomento Económico Mexicano, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

0.7% of Suntory Beverage & Food shares are held by institutional investors. 5.7% of Fomento Económico Mexicano shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Suntory Beverage & Food and Fomento Económico Mexicano’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Suntory Beverage & Food N/A N/A N/A
Fomento Económico Mexicano 9.01% 9.42% 4.22%

Dividends

Suntory Beverage & Food pays an annual dividend of $13.97 per share and has a dividend yield of 86.0%. Fomento Económico Mexicano pays an annual dividend of $1.84 per share and has a dividend yield of 1.4%. Suntory Beverage & Food pays out 23.0% of its earnings in the form of a dividend. Fomento Económico Mexicano pays out 17.2% 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.

Analyst Ratings

This is a summary of recent ratings for Suntory Beverage & Food and Fomento Económico Mexicano, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Suntory Beverage & Food 0 0 1 0 3.00
Fomento Económico Mexicano 0 4 3 0 2.43

Fomento Económico Mexicano has a consensus target price of $125.00, suggesting a potential downside of 7.78%. Given Fomento Económico Mexicano’s higher possible upside, analysts clearly believe Fomento Económico Mexicano is more favorable than Suntory Beverage & Food.

Summary

Fomento Económico Mexicano beats Suntory Beverage & Food on 9 of the 13 factors compared between the two stocks.

About Suntory Beverage & Food

(Get Free Report)

Suntory Beverage & Food Limited engages in manufacture and sale of alcoholic and non-alcoholic beverages, and foods in Japan, Asia-Pacific, Europe, and the Americas. It offers mineral water, coffee drinks, tea drinks, carbonated drinks, sports drinks, and food for specified health uses. It offers its products under various brands, including Suntory Tennensui, BOSS, Suntory Green Tea Iyemon, Suntory Green Tea Iyemon Tokucha (FOSHU), GREEN DAKARA, Pepsi Big, C.C.Lemon, Natchan, Orangina, Oasis, Lucozade, Ribena, Schweppes, MayTea, TEA+, MYTEA Oolong Tea, Sting, Okky, goodmood, BRAND'S Essence of Chicken, V, and Nature's Twist. The company was incorporated in 2009 and is headquartered in Tokyo, Japan. Suntory Beverage & Food Limited is a subsidiary of Suntory Holdings Limited.

About Fomento Económico Mexicano

(Get Free Report)

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.

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