Coca-Cola Enterprises Inc (CCE), The Coca-Cola Company (KO): This Beverage Company Must Innovative to Thrive

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Since the market continues to perform well, you might be looking for growth. If that’s the case, then Fomento Economico Mexicano SAB (ADR) (NYSE:FMX), also known as FEMSA, might be a better option than Coca-Cola Enterprises. It sports a net margin of 8.5%, an ROE of 13.8%, and it yields 1.4%.

These aren’t big selling points when compared to Coca-Cola Enterprises, but Fomento Economico Mexicano SAB (ADR) (NYSE:FMX) is the largest Coke bottling company in the world. Plus, Latin America (FEMSA doesn’t just operate in Mexico) presents a lot more growth potential than Western Europe right now. If you’re looking for more proof, consider the annual comparisons below.

Coca-Cola Enterprises:

Metric 2010 2011 2012
Revenue (in billions) $6.71 $8.28 $8.06
Diluted EPS $1.83 $2.29 $2.25

FEMSA:

 Metric 2010 2011 2012
Revenue (in billions) $13.41 $16.43 $18.38
Diluted EPS $9.08 $3.03 $4.46

While neither company has demonstrated perfection, FEMSA is still seeing top-line growth, and EPS improved in 2012 over 2011.

Conclusion

Coca-Cola Enterprises is a strong operation, but based on its region of exposure, this isn’t likely to be the best time to invest. Impressive innovations might help, but that’s a lot to bank on. If you’re looking for a growth play with less downside risk, then consider FEMSA. And if you desire safety because you’re concerned about the health of the stock market, then Coca-Cola will likely be the best bet of the three.

The article This Beverage Company Must Innovative to Thrive originally appeared on Fool.com and is written by Dan Moskowitz.

Fool contributor Dan Moskowitz has no position in any stocks mentioned. The Motley Fool recommends Coca-Cola. 

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