Coca-Cola vs. Celsius Holdings: Which Beverage Stock Has the Edge Now?

The Coca-Cola Company (KO), a global beverage powerhouse with a market cap of roughly $296.7 billion, and Celsius Holdings, Inc. (CELH), the fast-rising functional energy drink innovator valued at nearly $15.5 billion, represent two very different generations of beverage success.Coca-Cola, with more than 200 brands sold worldwide and 30 billion-dollar labels under its umbrella, continues to evolve through premiumization, innovation and digital marketing. Its latest quarter showed steady growth with organic revenues and EPS up 6% each, reflecting resilient demand across sparkling, hydration and dairy categories despite a volatile global backdrop.Meanwhile, Celsius is redefining the energy drink market with its zero-sugar, performance-oriented positioning. Its second-quarter 2025 results showcased 84% year-over-year revenue growth to $739 million, propelled by the integration of Alani Nu and surging consumer adoption among Gen Z and wellness-driven audiences.While Coca-Cola epitomizes scale and consistency, Celsius embodies innovation and speed. Their comparison is timely, as with consumer preferences shifting toward health-conscious beverages, both companies are racing to capture the next wave of growth in the global drinks industry.The Case for KOCoca-Cola’s investment story stands out for its lasting global leadership, strategic adaptability and broad geographic reach. The company maintains one of the largest positions in the non-alcoholic ready-to-drink space and has delivered 18 straight quarters of value share growth. With a portfolio that spans sparkling soft drinks, juices, dairy, hydration and energy beverages, Coca-Cola remains relevant across a wide range of consumers and income levels. North America continues to post steady gains with improving volumes, while high-growth markets such as India, Brazil, and Africa support its longer-term trajectory through affordable offerings and local innovation.Coca-Cola’s resilient business model combines iconic brands with strong execution and efficiency. Its digital-first marketing approach is building deeper consumer connections through personalized and culturally aligned campaigns, such as Fanta’s global Halloween initiative. At the same time, refranchising moves in regions like India and Africa are sharpening its focus on brand-building, improving margins and unlocking cash for future investments.The company’s portfolio balances value and premium choices, from mini-cans and smartwater to Topo Chico and fairlife, positioning it well to meet shifting lifestyle and wellness preferences. This balance strengthens its strategic cycle of marketing, innovation and disciplined execution.In the third quarter of 2025, Coca-Cola delivered 6% organic revenue growth with improved margins despite currency and cost pressures. Strong free cash flow — expected to reach around $10 billion — provides flexibility for reinvestment and shareholder returns. While near-term risks like tariffs and sugar taxes in markets such as Mexico remain, Coca-Cola’s dynamic pricing, efficient supply chain, and strong bottling network keep it well-positioned to sustain profitable growth and long-term value creation.The Case for CELHCelsius Holdings continues to stand out in the fast-growing functional beverage market, delivering strong momentum and expanding its position in the energy drink space. The company’s second-quarter 2025 performance was fueled by the Alani Nu acquisition and continued strength of the core Celsius brand, which grew 9%, thanks to better shelf placement, improved retail sell-through and a favorable mix across distribution channels.The modern energy category is outperforming the broader beverage market, driven by younger consumers who prefer zero-sugar and functional drinks. Both Celsius and Alani Nu are connecting well with this demographic, achieving household penetration of 34% and 22%, respectively, and repeat purchase rates above 65% — a clear sign of brand loyalty and staying power.Innovation remains a key growth engine. Alani Nu’s limited-time flavors like Cotton Candy and Sherbet Swirl helped lift incremental sales, while Celsius added fizz-free options such as Pink Lemonade and Dragon Fruit Lime to expand its portfolio. More seasonal and limited-edition launches are planned for the coming quarters to keep the brands fresh and top of mind with consumers.However, some near-term challenges persist. Higher input and packaging costs, including aluminum, as well as tariff-related pressures, could weigh on margins in the back half of the year. Increased marketing and acquisition costs could also temporarily affect profitability. Nonetheless, Celsius’ rapid growth, expanding distribution and strong consumer connection keep it well-positioned for continued category leadership.How Does the Zacks Consensus Estimate Compare for KO & CELH?The Zacks Consensus Estimate for Coca-Cola’s current fiscal-year sales and EPS suggests a year-over-year increase of 2.8% and 3.5%, respectively. The consensus estimate for EPS for the current fiscal year has risen by a penny to $2.98 over the past 30 days.Image Source: Zacks Investment ResearchThe Zacks Consensus Estimate for Celsius Holdings’ current fiscal-year sales and EPS implies year-over-year growth of 82.5% and 60%, respectively. The consensus estimate for EPS for the current fiscal year has remained unchanged at $1.12 over the past 30 days.Image Source: Zacks Investment ResearchKO & CELH: A Look at Past-Year Stock PerformanceOver the past year, shares of Coca-Cola have gained 5.6% compared with Celsius Holdings’ whopping increase of almost 100%. Based on recent performance, Celsius Holdings appears to be the stronger pick.Image Source: Zacks Investment ResearchKO vs. CELH: A Peek Into Stock ValuationCoca-Cola’s forward price-to-earnings (P/E) of 21.69 sits below its median of 22.26. Celsius Holdings is trading at a forward 12-month P/E ratio of 43.14, above its one-year median of 35.44. On valuation grounds, Coca-Cola looks more reasonably priced right now. Its forward P/E is slightly below its usual range, suggesting the stock may offer good value for investors seeking steady returns. Celsius Holdings, on the other hand, is trading above its typical valuation, meaning the market has already priced in much of its strong growth outlook.Image Source: Zacks Investment ResearchKO vs. CELH: Which Is the Better Bet Now?Coca-Cola and Celsius Holdings reflect two very different strengths in the beverage world — Coca-Cola brings scale, stability and global reach, while Celsius stands out for its fast growth and innovation. Coca-Cola’s strong brand portfolio, steady cash flow and reliable execution make it appealing for investors looking for consistency and resilience. Celsius, on the other hand, offers big growth potential as it expands quickly in the energy and functional drink market.For now, Coca-Cola looks like the stronger near-term choice, while Celsius remains a high-growth opportunity for investors with a longer-term view. Both KO and CELH currently carry a Zacks Rank #3 (Hold) each. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report CocaCola Company (The) (KO): Free Stock Analysis Report Celsius Holdings Inc. (CELH): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks