Comparative Analysis of Three Consumer Staples Companies

Abstract

With the financial risk like Fed rate hike, the fluctuation of gold price and so on, systematic risk of the global economy keeps increasing. Assets which are stable while still profitable will become popular with high possibility, and consumer staples is a sector with these properties. This paper analyses three stocks of consumer staples: Monster Beverage Corporation (MNST), The Coca-Cola Company (KO), and Nestlé S.A. (NSRGY). The analysis focuses on their risk, profitability, and market ratios to finally conclude the strategies that different types of investments should choose when investing on these stocks. Analysis on risk reveals that three companies have beta less than 1 and larger companies have lower beta. Analysis on profitability reveals that three companies are profitable and smaller companies are more profitable. Based on market ratios, these companies are not in low price. Finally, this paper analyses the asset selection for investors and the results show that these three companies are of good quality for income, ratio, and index investors, but not for value, PEG, and DCF investors, and momentum investors may invest on Monster Beverage Corporation, but not on other two companies. This article may help decide what sections to invest and how to choose between companies in the same section.