Critical Contrast: Golfgear International (MCHA) and Fomento Economico Mexicano SAB (FMX)

Golfgear International (OTCMKTS:MCHA) and Fomento Economico Mexicano SAB (NYSE:FMX) are both basic materials companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, profitability, dividends, risk, valuation, analyst recommendations and institutional ownership.

Dividends

Fomento Economico Mexicano SAB pays an annual dividend of $1.36 per share and has a dividend yield of 1.6%. Golfgear International does not pay a dividend. Fomento Economico Mexicano SAB pays out 22.6% of its earnings in the form of a dividend.

Volatility and Risk

Golfgear International has a beta of -3.75, indicating that its stock price is 475% less volatile than the S&P 500. Comparatively, Fomento Economico Mexicano SAB has a beta of 0.73, indicating that its stock price is 27% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and price targets for Golfgear International and Fomento Economico Mexicano SAB, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Golfgear International 0 0 0 0 N/A
Fomento Economico Mexicano SAB 0 1 3 0 2.75

Profitability

This table compares Golfgear International and Fomento Economico Mexicano SAB’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Golfgear International -40.75% -45.22% -16.35%
Fomento Economico Mexicano SAB 3.16% 4.59% 2.56%

Insider & Institutional Ownership

19.8% of Fomento Economico Mexicano SAB shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Golfgear International and Fomento Economico Mexicano SAB’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Golfgear International $510,000.00 50.46 -$300,000.00 N/A N/A
Fomento Economico Mexicano SAB $24.42 billion 1.28 $2.16 billion $6.03 14.44

Fomento Economico Mexicano SAB has higher revenue and earnings than Golfgear International.

Summary

Fomento Economico Mexicano SAB beats Golfgear International on 9 of the 11 factors compared between the two stocks.

Golfgear International Company Profile

Matchaah Holdings, Inc. develops, markets, sells, and distributes premium better-for-you matcha tea based products under the MATCHAAH brand name. The company was founded in 2016 and is based in Bloomington, Minnesota.

Fomento Economico Mexicano SAB Company Profile

Fomento Económico Mexicano, S.A.B. de C.V., through its subsidiaries, operates as a bottler of Coca-Cola trademark beverages and a chain of small-format stores. The company produces, markets, distributes, and sells Coca-Cola trademark beverages, including sparkling beverages, such as colas and flavored sparkling beverages; and waters and still beverages comprising juice, coffee, tea, milk, value-added dairy, sports, energy, and plant-based drinks. It also operates small-box retail chain stores in Mexico, Colombia, and the United States under the OXXO and Big John names; retail service stations for fuels, motor oils, lubricants, and car care products in Mexico under the OXXO GAS name; and drugstores in Chile, Colombia, and Mexico under the Cruz Verde, YZA, La Moderna, and Farmacon names. In addition, the company engages in the production and distribution of coolers, commercial refrigeration equipment, and plastic cases, as well as food processing, preservation, and weighing equipment; and provision of logistic transportation and maintenance, point-of-sale refrigeration, and plastics solutions. As of December 31, 2017, it operated 16,526 OXXO small-format stores in Mexico and Colombia, and 51 stores in Chile; 1,123 points of sale in Mexico, 882 in Chile, and 220 in Colombia; and 452 service stations in Mexico. Fomento Económico Mexicano, S.A.B. de C.V. was founded in 1890 and is headquartered in Monterrey, Mexico.

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