Analyzing Blue Gem Enterprise (OTCMKTS:BGEM) & Fomento Economico Mexicano (NYSE:FMX)

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

Valuation & Earnings

This table compares Blue Gem Enterprise and Fomento Economico Mexicano”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Blue Gem Enterprise	N/A	N/A	N/A	N/A	N/A
Fomento Economico Mexicano	$42.88 billion	0.71	$1.28 billion	$2.94	29.11

Fomento Economico Mexicano has higher revenue and earnings than Blue Gem Enterprise.

Profitability

This table compares Blue Gem Enterprise and Fomento Economico Mexicano’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Blue Gem Enterprise	N/A	N/A	N/A
Fomento Economico Mexicano	2.60%	5.32%	2.31%

Risk & Volatility

Blue Gem Enterprise has a beta of 2.03, meaning that its stock price is 103% more volatile than the S&P 500. Comparatively, Fomento Economico Mexicano has a beta of 0.66, meaning that its stock price is 34% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Blue Gem Enterprise and Fomento Economico Mexicano, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Blue Gem Enterprise	0	0	0	0	0.00
Fomento Economico Mexicano	0	3	2	0	2.40

Fomento Economico Mexicano has a consensus price target of $107.20, suggesting a potential upside of 25.26%. Given Fomento Economico Mexicano’s stronger consensus rating and higher probable upside, analysts clearly believe Fomento Economico Mexicano is more favorable than Blue Gem Enterprise.

Insider & Institutional Ownership

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

Summary

Fomento Economico Mexicano beats Blue Gem Enterprise on 9 of the 10 factors compared between the two stocks.

About Blue Gem Enterprise

Blue Gem Enterprise, Inc., through its subsidiaries, engages in full service direct store beverage distribution activities in Florida, the United States. The company manages and distributes select allied brands, including the Title Sports Drink for food and beverage manufacturers pursuant to exclusive agreements with manufacturers. It distributes various non-alcohol beverages, such as ice teas, juices, nutritional shakes, energy shots, and sports drinks, as well as food products. The company also distributes refrigerated dairy products, fresh produce, and food and beverages, including milk; fruits, such as watermelon; nut and snack bars under the Wings of Nature Bars brand name; Apple Rush, an apple flavored fruit beverage; Xingtea, a tea beverage; and Myoplex, a shake. It serves independent retail stores and chain stores. Blue Gem Enterprise, Inc. is based in Opa-locka, Florida.

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.