Comparing Coca-Cola Consolidated (NASDAQ:COKE) and Luckin Coffee (OTCMKTS:LKNCY)
by Danessa Lincoln · The Markets DailyCoca-Cola Consolidated (NASDAQ:COKE – Get Free Report) and Luckin Coffee (OTCMKTS:LKNCY – Get Free Report) are both consumer staples companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, dividends, profitability, valuation, earnings, risk and institutional ownership.
Volatility and Risk
Coca-Cola Consolidated has a beta of 0.55, indicating that its stock price is 45% less volatile than the S&P 500. Comparatively, Luckin Coffee has a beta of -0.31, indicating that its stock price is 131% less volatile than the S&P 500.
Insider and Institutional Ownership
48.2% of Coca-Cola Consolidated shares are held by institutional investors. Comparatively, 0.5% of Luckin Coffee shares are held by institutional investors. 0.0% of Coca-Cola Consolidated shares are held by company insiders. Comparatively, 2.7% of Luckin Coffee shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Valuation and Earnings
This table compares Coca-Cola Consolidated and Luckin Coffee”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Coca-Cola Consolidated | $7.23 billion | 1.67 | $570.58 million | $7.31 | 24.83 |
| Luckin Coffee | $7.03 billion | 1.24 | $513.88 million | $1.60 | 19.07 |
Coca-Cola Consolidated has higher revenue and earnings than Luckin Coffee. Luckin Coffee is trading at a lower price-to-earnings ratio than Coca-Cola Consolidated, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of current ratings and target prices for Coca-Cola Consolidated and Luckin Coffee, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Coca-Cola Consolidated | 0 | 0 | 1 | 0 | 3.00 |
| Luckin Coffee | 0 | 1 | 1 | 1 | 3.00 |
Luckin Coffee has a consensus target price of $47.80, indicating a potential upside of 56.67%. Given Luckin Coffee’s higher possible upside, analysts clearly believe Luckin Coffee is more favorable than Coca-Cola Consolidated.
Profitability
This table compares Coca-Cola Consolidated and Luckin Coffee’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Coca-Cola Consolidated | 7.72% | 138.44% | 13.10% |
| Luckin Coffee | 6.74% | 25.48% | 12.97% |
Summary
Coca-Cola Consolidated beats Luckin Coffee on 10 of the 13 factors compared between the two stocks.
About Coca-Cola Consolidated
Coca-Cola Consolidated, Inc., together with its subsidiaries, manufactures, markets, and distributes nonalcoholic beverages primarily products of The Coca-Cola Company in the United States. The company offers sparkling beverages; and still beverages, including energy products, as well as noncarbonated beverages comprising bottled water, ready to drink coffee and tea, enhanced water, juices, and sports drinks. It also sells its products to other Coca-Cola bottlers; and post-mix products that are dispensed through equipment, which mixes the fountain syrups with carbonated or still water enabling fountain retailers to sell finished products to consumers in cups or glasses. In addition, the company manufactures and distributes various other beverage brands that include Dr Pepper and Monster Energy. It sells and distributes its products directly to grocery stores, mass merchandise stores, club stores, convenience stores, and drug stores; and restaurants, schools, amusement parks, and recreational facilities, as well as through vending machine outlets. The company was formerly known as Coca-Cola Bottling Co. Consolidated and changed its name to Coca-Cola Consolidated, Inc. in January 2019. Coca-Cola Consolidated, Inc. was incorporated in 1980 and is headquartered in Charlotte, North Carolina.
About Luckin Coffee
Luckin Coffee Inc. offers retail services of freshly brewed drinks, and pre-made food and beverage items in the People's Republic of China. It offers hot and iced freshly brewed coffee, such as Americano, Latte, Cappuccino, Macchiato, Flat White, and Mocha, as well as specialty coffee based on market and seasonal trends; coconut milk latte products; tea drinks; pre-made beverages; and pre-made food items, such as pastries, sandwiches, and snacks. In addition, the company offers Luckin Pop premium instant coffee and inspirational cups through mobile apps and e-commerce platforms. It operates pick-up stores, relax stores, and delivery kitchens under the Luckin brand, as well as Luckin mobile app, Weixin mini-program, and other third-party platforms for third-party payment channels. Further, the company offers technical and consultation services; and manufactures materials for products. Luckin Coffee Inc. was incorporated in 2017 and is headquartered in Xiamen, the People's Republic of China.