There must be millions of Coke addicts out there but are they a dying breed?
Indeed, the Coca-Cola Amatil Ltd (ASX: CCL) share price seems to suggest such.
In 2013 it was trading above $15 and closed on Wednesday at $8.01.
So, is Coca-Cola a bargain or has it lost its fizz?
Coca-Cola shares are trading at around 32x trailing earnings, significantly below that of another alcohol distributor, Treasury Wine Estates Ltd (ASX: TWE), which is trading for about 43x earnings.
But Treasury Wine's profits have been growing, up 55% to $269.1 million for financial year (FY) 2017, and look set to continue doing so, whereas with Coca-Cola it's a different story.
According to Coca-Cola's latest half-year results its net profit dropped to about $190.1 million, representing a decline of 4.1% on the previous year.
That being the case, Coca-Cola is not looking like much of a bargain.
And while Treasury Wine's management has produced a return on assets of about 5.11%, Coca-Cola's has yielded 3.37%.
Another company, Retail Food Group Limited (ASX: RFG), which like Coca-Cola also has a hand in the coffee business may provide some interesting points of comparison.
On the surface Retail Food Group Limited, which is trading for about 12x trailing earnings, looks a bargain when stacked against Coca-Cola.
Like Coca-Cola, the Retail Food Group share price has plummeted this year.
But, unlike Coca-Cola, the Retail Food Group has managed to increase profits, up 14% in a year, according to the company which operates coffee chains including Gloria Jean's Coffees and Esquires Coffee in addition to its wholesale coffee business Di Bella Coffee.
And, using return on assets as an indicating measure, at 7.36% it appears Retail Food Group's management are making better use of what they've got than both Coca-Cola and Treasury Wine.
All this leads to a tentative conclusion that supports the ideas that Coke addicts are a dying breed and Coca-Cola has lost its fizz.
As such, there are healthier options for your hipline and hip pocket than Coke.
