Coca-Cola Company actions (Nyse 🙂 and Pepsico (Nasdaq :). Inc. is a source of debate among value and growth investors. In 2025, the KO stock clearly contains the advantage. The action has increased by 14.5%, which is above the sector average. PEP shares have dropped from 13.5% and are quoted near the minimum of 52 weeks.
However, while the impulse is on the side of Coca Cola, Pepsi can be a more refreshing option for investors.
When evaluating these two category leaders, it is important to develop vision of the tunnel. The company’s emblematic soft drinks are under fire of the Secretary of Health and Human Services (HHS) and GLP-1 drugs.
Both companies have been diversifying their respective businesses for years, so they continue to be a basic element in the portfolios of many investors.
It is also the reason why many of the main ETFs of basic consumption products have both actions. Companies have defensive qualities and prioritize the value of shareholders.
Coca-Cola is surpassing the sector, but it is growing expensive
Just when the consumption of Staples’ actions began to leave a two -year drop, a weakened economy increased to the sector. The ETF NYSEARCA: IYK, a fund that provides broad exposure to the sector, has increased approximately 8% in 2025, but resistance is located near its maximum of 52 weeks.
That makes KO stock performance much more impressive. When it includes its 2.86% dividend yield in the profit of the price of the shares, it doubles the average of the sector. This is a profit story.
The company’s income has dropped a little year after year (year -on -year), but their ability to maintain stable profits is a testimony of its price setting power.
However, in 2024, the word on the lips of each investor is the assessment.
That’s where Ko’s actions begin to seem a bit expensive. It is quoted to the profits of around 28 times and the 24x earnings forward. Both are above the average of 20.4x soft drinks, as compiled by Yardeni Research.
Perhaps more significantly, both are above the historical average of the actions.
The forecasts of Coca-Cola analysts in Marketbeat have an objective consensus price of $ 75.08 in KO shares as of May 28. Several analysts increased their price objectives after Coca-Cola reported profits in April.
The king may be ready to ascend once again
A common feature of Pepsi and Coca-Cola is its status as dividends. That means that companies have increased their dividends for at least 50 consecutive years.
That generally means that investors can have strength balances to support that dividend.
That is not the case with Pepsi in 2025. In 2024, Pepsi paid shareholders $ 5.42 per action in dividends. However, it generated $ 5.28 per action in free cash flow. That means that Pepsi had to immerse himself in his wide cash reserves to cover his dividend.
The company’s financial performance is reflected in the price of shares. Pepsico’s shares have dropped 14% in 2025 and more than 24% in the last 12 months. The company is clearly different from Coca-Cola due to its division of snacks.
This has allowed Pepsi to offer investors a more diversified portfolio that has been reflected in the total PEP stock yield of more than 224% in the last 15 years.
The company is being affected by LPG-1 drugs that reduce patients. However, the greatest impact is now inflation, which has been greater in relation to food.
Even with the premium platform space and price power, consumers seem to be making smarter decisions.
However, the slower growth remains a growth, and with the negotiation of shares near the minimum of five years, it is beginning to seem oversized. The analysts forecasts and the relative resistance indicator support it. In addition, with 18x profits, it is quoted with a discount for itself and the sector.
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