This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

A Cross-Border Battle With Some Pop

NEW YORK ( TheStreet) -- I notice that when I stop by the supermarket here in San Diego there is now a cooler full of sleek, old-style bottles filled with Mexican Coca-Cola.

I like the Mexican version a lot better than the American version. There is just something about an ice-cold glass bottle. In addition to this, the Mexican Coke uses a less refined sugar than American Coke that makes for a sweeter, bolder taste.

Drinking these Mexican Cokes is like going back 40-50 years when the American version came in similar bottles and one needed a bottle opener to pop the lid. That was back when the American version of Coca-Cola's (KO - Get Report) stock was an aggressive growth stock and the Mexican version, offered by Fomento Economico Mexicano SAB de CV (FMX), did not exist.

Since then, Atlanta-based Coca-Cola has matured and growth has slowed down considerably for this Dow Jones Industrials member. The company is now a $169 billion firm while the Mexican version is just $35 billion.

Data from Best Stocks Now App

While I like the taste of Mexico-produced Coca-Cola better than American Coca-Cola, which is the better stock?

Let's begin with the performance of the two stocks over the years:

Data from Best Stocks Now App

As you can see, it is virtually no contest. Or should I say no concurso? The Mexican middle-weight has it all over the American heavyweight. Compare the one-, two-, five-, and 10-year performance of these two stocks. $10,000 would have grown to almost $95,000 in pesos in FMX, while the American version delivered a much flatter $21,790.

I know, you have all heard the expression "past performance is no guarantee of future results," but those are some significant numbers. If I am an odds maker on this battle, based on performance the favorite would seem clear.

But what about valuation? I don't like to buy stocks based on performance only. I like all three legs of the stool to be in place: performance, value and a good stock chart. How does the valuation weigh-in stack up?
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
FMX $93.25 0.00%
KO $44.66 0.07%
AAPL $95.03 0.21%
FB $116.73 0.00%
GOOG $691.02 0.00%


Chart of I:DJI
DOW 17,830.76 -210.79 -1.17%
S&P 500 2,075.81 -19.34 -0.92%
NASDAQ 4,805.2910 -57.85 -1.19%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs