Coca-Cola Bottling Co. Consolidated (COKE) and Long Island Iced Tea Corp. (LTEA) Critical Review

Coca-Cola Bottling Co. Consolidated (NASDAQ: COKE) and Long Island Iced Tea Corp. (NASDAQ:LTEA) are both small-cap consumer staples companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, institutional ownership, valuation, earnings, dividends, analyst recommendations and risk.

Dividends

Coca-Cola Bottling Co. Consolidated pays an annual dividend of $1.00 per share and has a dividend yield of 0.5%. Long Island Iced Tea Corp. does not pay a dividend. Coca-Cola Bottling Co. Consolidated pays out 20.4% of its earnings in the form of a dividend.

Profitability

This table compares Coca-Cola Bottling Co. Consolidated and Long Island Iced Tea Corp.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Coca-Cola Bottling Co. Consolidated 1.23% 15.49% 2.18%
Long Island Iced Tea Corp. -305.26% -349.13% -202.48%

Valuation & Earnings

This table compares Coca-Cola Bottling Co. Consolidated and Long Island Iced Tea Corp.’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Coca-Cola Bottling Co. Consolidated $3.73 billion 0.52 $251.76 million $4.91 42.54
Long Island Iced Tea Corp. $4.79 million 5.42 -$11.97 million ($1.90) -1.50

Coca-Cola Bottling Co. Consolidated has higher revenue and earnings than Long Island Iced Tea Corp.. Long Island Iced Tea Corp. is trading at a lower price-to-earnings ratio than Coca-Cola Bottling Co. Consolidated, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

37.3% of Coca-Cola Bottling Co. Consolidated shares are held by institutional investors. Comparatively, 1.1% of Long Island Iced Tea Corp. shares are held by institutional investors. 0.0% of Coca-Cola Bottling Co. Consolidated shares are held by company insiders. Comparatively, 18.1% of Long Island Iced Tea Corp. shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Volatility & Risk

Coca-Cola Bottling Co. Consolidated has a beta of 0.06, suggesting that its stock price is 94% less volatile than the S&P 500. Comparatively, Long Island Iced Tea Corp. has a beta of -10.56, suggesting that its stock price is 1,156% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for Coca-Cola Bottling Co. Consolidated and Long Island Iced Tea Corp., as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Coca-Cola Bottling Co. Consolidated 0 0 0 0 N/A
Long Island Iced Tea Corp. 0 0 0 0 N/A

Summary

Coca-Cola Bottling Co. Consolidated beats Long Island Iced Tea Corp. on 9 of the 12 factors compared between the two stocks.

Coca-Cola Bottling Co. Consolidated Company Profile

Coca-Cola Bottling Co. Consolidated produces, markets and distributes nonalcoholic beverages. The Company is an independent Coca-Cola bottler in the United States. The Company’s segments include Nonalcoholic Beverages and All Other. Majority of its total bottle/can volume to retail customers consist of products of The Coca-Cola Company. It also distributes products for various other beverage brands, including Dr Pepper, Sundrop and Monster Energy. The Company’s product offerings include both sparkling and still beverages. Sparkling beverages are carbonated beverages and the Company’s principal sparkling beverage is Coca-Cola. Still beverages include energy products and noncarbonated beverages, such as bottled water, tea, ready to drink coffee, enhanced water, juices and sports drinks. There are two main categories of sales, which include bottle/can sales and other sales.

Long Island Iced Tea Corp. Company Profile

Long Island Iced Tea Corp. is a holding company operating through its subsidiary, Long Island Brand Beverages, LLC (LIBB). The Company is engaged in the production and distribution of Non-Alcoholic Ready-to-Drink (NARTD) iced tea in the beverage industry. It is organized around its brand, Long Island Iced Tea. Long Island Iced Tea is sold primarily on the East Coast of the United States through a network of national and regional retail chains and distributors. The Company produces brewed tea, using black tea leaves, purified water and natural cane sugar or sucralose. The Company’s Long Island Iced Tea’s flavors include lemon, peach, raspberry, guava, mango, diet lemon, diet peach, sweet tea, green tea and honey, and half tea and half lemonade. It also offers lower calorie iced tea in over 12 ounce bottles. The lower calorie flavor options include mango, raspberry and peach. The Company’s products include All-Natural Tea, Diet Tea, Fruit-Flavored Tea, Organic Tea and Herbal Tea.

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