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Kick off: Coca-Cola Amatil Ltd v Woodside Petroleum Limited

The Motley Fool’s ASX World Cup is now halfway through the 16-team knockout stage. Today we have two S&P/ASX 200 (ASX: XJO) (INDEX: ^AXJO) heavyweights playing off for a spot in the final eight. Both of the contenders, Coca-Cola Amatil Ltd (ASX: CCL) – a crowd favourite who barely made it through the retail group, and the yet to be beaten Woodside Petroleum Limited (ASX: WPL), will both be looking to get over the line in what has proven to be a hotly anticipated match up.

Here’s how they line up.

Measure Coca-Cola Amatil (“CCA”) Woodside Petroleum
Market Capitalisation $7.2 billion $33.8 billion
FY14 Forecast Dividend Yield 4.8% 6.5%
Forward Price to Earnings ratio 16.7 12.8
Price to Book Ratio 4.17 1.99
Return on Equity 29% 11.2%
Debt to Equity 179% 24.7%

Data sourced from Morningstar.

Pre-Match Commentary

Based on current form, CCA is coming into the game as the underdog. Thanks to the recent turbulence in its earnings and, subsequently, its share price, the team has a newly appointed captain, Alison Watkins, who is keen to turnaround the spate of bad results. The Indonesian business’s rising costs, SPC Ardmona’s intense foreign competition and a price war with Schweppes aren’t easy hurdles to overcome but she just might have what it takes to get CCA over the line today.

Woodside Petroleum, led by Peter Coleman, has a history of rewarding faithful shareholders and, together with the current and former management teams, has nurtured a reputation for successfully taking on big projects, such as North West Shelf. With a solid balance sheet and juicy dividend yield, Woodside is looking for a clean sheet today.

GAME ON!

Straight from the whistle it’s easy to see how Woodside has built its reputation because any attack from the CCA forwards is crushed before it begins to look dangerous. With ongoing injury concerns Woodside’s key forward, Browse FLNG, is kept on the sidelines but with little attacking power up front it may be needed sooner rather than later.

Then, with minutes left in the first half, a streaker takes to the field with the words “valuation” written on his chest. The CCA players seem distracted by the man but the Woodside captain, Peter Coleman, has seen those words too many times to let it get to him and seizes the opportunity to play a lovely ball through the opposing defenders for the attacker, Pluto LNG, to finish with a classy goal. The CCA players and fans are livid with the referee. At half-time the score is 1 – 0 to Woodside.

The second half plays out much the same as the first but it’s obvious the CCA players are still upset by the earlier distraction and are unable to lift their game. They quickly begin to blame all their shortcomings on the referee, but it’s clear they have other issues such as expensive input costs into the Indonesian market, increased labour rates and a price war with Schweppes.

Through it all Alison Watkins remains composed, despite fans being fed-up with the company’s performance and apparent lack of transparency over the past 24 months. With a better dividend payout and debt position, Woodside moves the ball forward with ease and snatches a goal as a key CCA defender, SPC Ardoma, takes a dive. He holds his hand out to the referee pleading for a $50 million payout, but the official has different ideas and pulls a cheaper (but still juicy) red can of Italian tomatoes from his pocket and sends him off the pitch for diving.

The game ends 2 – 0 to Woodside.

Although the game ended controversially, CCA can be hopeful of what the future holds because, from here, it seems the only way this iconic Australian company can go is up. Woodside moves through to the final eight unbeaten so far in the cup.

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Motley Fool Contributor Owen Raszkiewicz does not have a financial interest in any of the mentioned companies. 

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