Best Stock to Buy Right Now: PepsiCo vs. Coca-Cola
With the recent return of volatility in the stock market, investors have fallen back in love with sturdy consumer staples businesses -- especially the ones that pay out predictably rising dividends. PepsiCo (NASDAQ: PEP) has been one of those relative winners so far in 2025, with shares up slightly even as the S&P 500 dropped 5%. Let's take a closer look at that beverage and snack food giant to see how it stacks up against its main drink rival, Coca-Cola (NYSE: KO).Coca-Cola is the clear growth winner, despite consumers becoming more price-sensitive in the past year. Organic sales rose 14% in the most recent quarter, trouncing PepsiCo's 2% uptick. The beverage giant is projecting another solid year ahead as organic revenue expands by between 5% and 6%. PepsiCo's management team, on the other hand, forecast another year of low-single-digit revenue gains in 2025 after organic sales rose by just 2% last year.Investors will be watching both companies' results for signs of inflation fatigue. That's more of a challenge for PepsiCo, though, due to its exposure to rising food ingredient prices. Its sales volume fell by 1% last quarter, compared to Coca-Cola's 2% uptick. Coca-Cola was also able to raise prices more aggressively in 2024 while keeping volume in positive territory. These factors suggest that Coca-Cola has a clearer path toward improving shareholder returns in 2025 and beyond.Continue reading
With the recent return of volatility in the stock market, investors have fallen back in love with sturdy consumer staples businesses -- especially the ones that pay out predictably rising dividends. PepsiCo (NASDAQ: PEP) has been one of those relative winners so far in 2025, with shares up slightly even as the S&P 500 dropped 5%. Let's take a closer look at that beverage and snack food giant to see how it stacks up against its main drink rival, Coca-Cola (NYSE: KO).
Coca-Cola is the clear growth winner, despite consumers becoming more price-sensitive in the past year. Organic sales rose 14% in the most recent quarter, trouncing PepsiCo's 2% uptick. The beverage giant is projecting another solid year ahead as organic revenue expands by between 5% and 6%. PepsiCo's management team, on the other hand, forecast another year of low-single-digit revenue gains in 2025 after organic sales rose by just 2% last year.
Investors will be watching both companies' results for signs of inflation fatigue. That's more of a challenge for PepsiCo, though, due to its exposure to rising food ingredient prices. Its sales volume fell by 1% last quarter, compared to Coca-Cola's 2% uptick. Coca-Cola was also able to raise prices more aggressively in 2024 while keeping volume in positive territory. These factors suggest that Coca-Cola has a clearer path toward improving shareholder returns in 2025 and beyond.
