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Community Picks 08/03

The DAX starts the week with over 15,200 points! Last week, there was quite little movement, as the worries about the never-ending Corona crisis and the optimism about the time thereafter currently balance each other out.


What brings this week on the stock market? There are several quarterly reports and annual general meetings of major companies coming up, which are eagerly awaited.


Community Picks Portfolio!

1. Coca-Cola

The first duel was about the eternal duel Pepsi versus Coca-Cola. Both brands have been competing in the beverage market for decades.


Both groups still suffer from the fact that restaurants are closed and events canceled. Pepsi seems to be coming through the crisis better, with EBITDA down only 0.75% in 2020. Coca-Cola, on the other hand, generated over 8% less than in 2019.


Pepsi is also clearly superior in terms of absolute revenue. Pepsi was able to generate sales of over $70 billion in 2020, while Coca-Cola only generated just under $33 billion.


However, Coca-Cola is the leader in terms of market capitalization, with 193 billion euros compared to Pepsi's 165 billion euros. Moreover, Coca-Cola is an integral part of any dividend portfolio with a constant dividend yield of around 3%.

Pepsi will present its Q1 2021 quarterly results next Thursday, and Coca-Cola will hold its annual shareholders' meeting on April 20.

2. BlackRock

In the duel of the big banks, BlackRock clearly prevailed against Goldman Sachs. Both will present their figures for the past quarter this week. Goldman Sachs will start on Wednesday, BlackRock will follow on Thursday.


BlackRock manages nearly $9 billion in assets, making it the largest asset manager in the world. An increasingly large part of this is passively managed via the ETF division iShares.


The company itself has a market capitalization of just under 100 billion euros and is fairly valued with a P/E ratio of around 25.


It is also commendable that the founder and CEO of BlackRock, Larry Fink, is actively involved in the fight against climate change. He is always trying to convince the CEOs of the companies in which he has a stake to become more involved in sustainability. And iShares' product range also includes more and more ETFs that invest only in ESG or SRI-screened companies. 🌱

3. Ferrari

In the third duel of the Community Picks, Ferrari and Stellantis faced each other. You decided in favor of the traditional Italian brand. Stellantis had to admit defeat, but perhaps also because the company is still very young and rather unknown.


Stellantis was only formed at the beginning of the year from the merger of PSA and Fiat Chrysler Automobiles. The group includes brands such as Fiat, Citroën, Maserati, Opel, Peugeot and Jeep.


But now to Ferrari: The Italians have come through the crisis well and even reached a new all-time high at the end of last year. Ferrari sold 9,100 vehicles last year, which is a decrease of 10% compared to the previous year.


Ferrari's big advantage is its extremely high margin. Per car sold, the profit is about 18% of the purchase price. That's an average of about 60,000 euros for Ferrari's high-priced cars. By comparison, Porsche's profit per car is about 17,000 euros.


Ferrari's annual general meeting will be held on Thursday.

4. LVMH

The fourth duel was about luxury for the portfolio: LVMH vs. Christian Dior.


If you look at these companies, you can't avoid one name: Bernard Arnault. The 72-year-old Frenchman is the richest man in Europe and the third richest person in the world after Jeff Bezos and Elon Musk.


With LVMH, Arnault has built a huge empire that includes more than 75 brands. The portfolio ranges from spirits such as Moët & Chandon, Belvedere and Hennessy to fashion labels such as Louis Vuitton, Givenchy and Fendi to perfume, cosmetics, watches, jewelry and even newspapers.


With a market capitalization of nearly 300 billion euros, LVMH is one of the largest companies in Europe. Since Corona, the company has even continued to grow. The market for luxury goods did not collapse even during the crisis. Especially in Asia, they were able to grow even more, because many customers could not spend their money on travel and the stores in China were able to reopen relatively quickly.


So it's a very interesting company, which is holding its annual general meeting on Thursday.

5. Nestle

Let's turn our attention to the next major corporation. In the last duel, you chose Nestle over Henkel.


Nestle's brands include Nescafé, S.Pellegrino, KitKat and many more. For some time now, Ulf Schneider, the CEO of Nestle, has been restructuring the group. This resulted in a drop in sales of about 12% last year. Nevertheless, Nestle is an absolutely solid company that continues to offer growth potential.


Especially in the areas of coffee, pet food and vegan nutrition, Nestle wants to expand its portfolio and continue to grow. To this end, they recently sold their water business in the USA for over $4 billion. However, the brands Perrier, S.Pellegrino and Acqua Panna will remain in the Nestle portfolio.


More information on the restructuring will probably be published on Thursday. That's when the annual general meeting is scheduled.