Is Coca Cola riskier than Industrias Bachoco SA (NYSE:IBA)?

KO
 Stock
  

USD 62.69  0.06  0.1%   

Today we may see the proof that Industrias Bachoco would recover slower from the current slip as its shares fell 1.65% to Coca Cola's 1.11%. As many rational traders are trying to avoid consumer defensive space, it makes sense to outline Coca-Cola a little further and understand how it stands against Industrias Bachoco and other similar entities. We are going to inspect some of the competitive aspects of both Coca Cola and Industrias.
Published over two months ago
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By analyzing existing basic indicators between Coca Cola and Industrias, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Industrias with a short position in Coca Cola. Check out our pair correlation module for more information.

Let's begin by analyzing the assets.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Coca Cola has an asset utilization ratio of 45.91 percent. This suggests that the company is making $0.46 for each dollar of assets. An increasing asset utilization means that Coca-Cola is more efficient with each dollar of assets it utilizes for everyday operations.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two entities, such as Coca Cola or PBF Energy is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

Understending Coca Cola dividends

A dividend is the distribution of a portion of Coca Cola earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Coca Cola dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Coca Cola one year expected dividend income is about $1.28 per share.
Dividend Yield is expected to rise to 0.032 this year, although the value of Payment of Dividends and Other Cash Distributions will most likely fall to (7.8 B).
Last ReportedProjected for 2022
Payment of Dividends and Other Cash Distributions-7.3 B-7.8 B
Dividend Yield 0.028  0.032 
Dividends per Basic Common Share 1.68  1.67 
Investing in dividend-paying stocks, such as Coca-Cola is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Coca Cola must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Coca Cola. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.

How important is Coca Cola's Liquidity

Coca Cola financial leverage refers to using borrowed capital as a funding source to finance Coca-Cola ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Coca Cola financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Coca Cola's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
It is good to see analyst projects for Coca Cola, but it might be worth checking our own buy vs. sell analysis

Correlation Between Coca Cola and PBF Energy

In general, Stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Coca Cola together with similar or unrelated positions with a negative correlation. For example, you can also add PBF Energy to your portfolio. If PBF Energy is not perfectly correlated to Coca Cola it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Coca Cola, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Please check pair correlation details between KO and PBF for more information.

Note

Are you currently holding both Coca Cola and PBF Energy in your portfolio?
Please note if you are using this as a pair-trade strategy between Coca Cola and PBF Energy, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses.

Coca Cola exotic insider transaction detected

Legal trades by Coca Cola insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Coca Cola insider trading alert for general transaction of hypothetical shares by James Quincey, Chairman and CEO, on 4th of September 2022. This event was filed by Coca Cola Co with SEC on 2022-07-29. Statement of changes in beneficial ownership - SEC Form 4. James Quincey currently serves as chairman of the board, chief executive officer of Coca-Cola [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

A Deeper look at Coca Cola

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Now, let's check Coca Cola revenue. Based on the latest financial disclosure, Coca-Cola reported 41.32 B of revenue. This is 178.16% higher than that of the Consumer Defensive sector and significantly higher than that of the Beverages—Non-Alcoholic industry. The revenue for all United States stocks is significantly lower than that of Coca-Cola. As for Industrias Bachoco we see revenue of 92.28 B, which is much higher than that of the Beverages—Non-Alcoholic

Coca Cola41.32 Billion
Sector0.0
Industrias92.28 Billion
41.3 B
Coca Cola
Sector
92.3 B
Industrias

Analysis of Coca-Cola

Latest Risk Adjusted Performance is up to -0.07. Price may slide again.
As of the 24th of September, Coca Cola shows the mean deviation of 0.7939, and Risk Adjusted Performance of (0.07). Coca-Cola technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices. Put another way, you can use this information to find out if the firm will indeed mirror its model of historical prices and volume momentum, or the prices will eventually revert. We were able to break down and interpolate data for nineteen technical drivers for Coca-Cola, which can be compared to its rivals. Please confirm Coca-Cola variance, as well as the relationship between the value at risk and skewness to decide if Coca-Cola is priced correctly, providing market reflects its regular price of 58.6 per share. Given that Coca Cola has jensen alpha of (0.036654), we suggest you to validate Coca-Cola's prevailing market performance to make sure the company can sustain itself at a future point.

Our Conclusion on Coca Cola

Whereas many other companies in the beverages—non-alcoholic industry are either recovering or due for a correction, Coca Cola may not be as strong as the others in terms of longer-term growth potentials. With a somewhat neutral outlook on your 90 days horizon, it may be better to hold off any trading activity and neither take in new shares of Coca Cola nor drop your existing holdings in the Stock. It seems the expected volatility has not yet been fully factored into the current price. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Coca Cola.

Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Aina Ster do not own shares of Coca-Cola. Please refer to our Terms of Use for any information regarding our disclosure principles.

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