Head-To-Head Survey: Pepsico (NYSE:PEP) and Fomento Economico Mexicano S.A.B. de C.V. (FMX)

Fomento Economico Mexicano S.A.B. de C.V. (NYSE: FMX) and Pepsico (NYSE:PEP) are both large-cap consumer staples companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, risk, earnings, profitability, valuation, dividends and institutional ownership.

Risk and Volatility

Fomento Economico Mexicano S.A.B. de C.V. has a beta of 0.57, suggesting that its stock price is 43% less volatile than the S&P 500. Comparatively, Pepsico has a beta of 0.67, suggesting that its stock price is 33% less volatile than the S&P 500.

Profitability

This table compares Fomento Economico Mexicano S.A.B. de C.V. and Pepsico’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Fomento Economico Mexicano S.A.B. de C.V. 5.26% 8.42% 4.44%
Pepsico 10.77% 59.74% 9.72%

Valuation and Earnings

This table compares Fomento Economico Mexicano S.A.B. de C.V. and Pepsico’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Fomento Economico Mexicano S.A.B. de C.V. $24.77 billion 1.46 $3.02 billion $2.69 37.55
Pepsico $63.30 billion 2.65 $12.42 billion $4.72 24.92

Pepsico has higher revenue and earnings than Fomento Economico Mexicano S.A.B. de C.V.. Pepsico is trading at a lower price-to-earnings ratio than Fomento Economico Mexicano S.A.B. de C.V., indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current ratings and target prices for Fomento Economico Mexicano S.A.B. de C.V. and Pepsico, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Fomento Economico Mexicano S.A.B. de C.V. 0 1 3 0 2.75
Pepsico 0 4 11 0 2.73

Fomento Economico Mexicano S.A.B. de C.V. presently has a consensus price target of $102.00, indicating a potential upside of 0.98%. Pepsico has a consensus price target of $123.09, indicating a potential upside of 4.67%. Given Pepsico’s higher probable upside, analysts plainly believe Pepsico is more favorable than Fomento Economico Mexicano S.A.B. de C.V..

Insider & Institutional Ownership

23.8% of Fomento Economico Mexicano S.A.B. de C.V. shares are owned by institutional investors. Comparatively, 70.2% of Pepsico shares are owned by institutional investors. 0.3% of Pepsico shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Dividends

Fomento Economico Mexicano S.A.B. de C.V. pays an annual dividend of $1.32 per share and has a dividend yield of 1.3%. Pepsico pays an annual dividend of $3.22 per share and has a dividend yield of 2.7%. Fomento Economico Mexicano S.A.B. de C.V. pays out 49.1% of its earnings in the form of a dividend. Pepsico pays out 68.2% 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. Fomento Economico Mexicano S.A.B. de C.V. has increased its dividend for 44 consecutive years.

Summary

Pepsico beats Fomento Economico Mexicano S.A.B. de C.V. on 13 of the 17 factors compared between the two stocks.

Fomento Economico Mexicano S.A.B. de C.V. Company Profile

Fomento Economico Mexicano, S.A.B. de C.V. (FEMSA) is a holding company. The Company’s segments are Coca-Cola FEMSA, FEMSA Comercio-Retail Division and FEMSA Comercio-Fuel Division. The Company conducts its operations through holding companies, such as Coca-Cola FEMSA, S.A.B. de C.V. and subsidiaries (Coca-Cola FEMSA), which produces, distributes and sells beverages; FEMSA Comercio, S.A. de C.V. and subsidiaries (FEMSA Comercio), which consists of a Retail Division operating various small-format chain stores, and CB Equity LLP, which holds its equity investment in Heineken N.V., and Heineken Holding N.V. The Company’s Coca-Cola FEMSA produces, markets, sells and distributes Coca-Cola trademark beverages through standard bottler agreements in certain territories in the countries, in which it operates. Coca-Cola FEMSA also sells bottled water products. FEMSA participates in the retail sector primarily through FEMSA Comercio.

Pepsico Company Profile

PepsiCo, Inc. is a global food and beverage company. The Company’s portfolio of brands includes Frito-Lay, Gatorade, Pepsi-Cola, Quaker and Tropicana. The Company operates through six segments: Frito-Lay North America (FLNA), Quaker Foods North America (QFNA), North America Beverages (NAB), Latin America, Europe Sub-Saharan Africa (ESSA), and Asia, Middle East and North Africa (AMENA). The FLNA segment includes its branded food and snack businesses in the United States and Canada. The QFNA segment includes its cereal, rice, pasta and other branded food businesses in the United States and Canada. The NAB segment includes its beverage businesses in the United States and Canada. The Latin America segment includes its beverage, food and snack businesses in Latin America. The ESSA segment includes its beverage, food and snack businesses in Europe and Sub-Saharan Africa. The AMENA segment includes its beverage, food and snack businesses in Asia, Middle East and North Africa.

Receive News & Ratings for Fomento Economico Mexicano S.A.B. de C.V. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Fomento Economico Mexicano S.A.B. de C.V. and related companies with MarketBeat.com's FREE daily email newsletter.

Latest News

Leave a Reply