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) 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?
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV