Investment Comparison: Coca-Cola vs. Celsius
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Source: Fool
- Coca-Cola's Market Dominance: Coca-Cola sells over 200 brands in more than 200 countries, achieving nearly $47.9 billion in revenue and approximately $13.1 billion in net income for FY 2025, showcasing its strong profitability and market leadership in the beverage sector.
- Celsius's Rapid Growth: Celsius reported around $2.5 billion in revenue for FY 2025, reflecting an impressive growth rate of 85.5%, although its net income was only about $108 million, indicating a strategy focused on market share expansion among younger consumers.
- Risk Analysis: Coca-Cola faces intense competition from rivals like PepsiCo and Nestlé, along with risks from supply chain disruptions and raw material price volatility, while Celsius's heavy reliance on PepsiCo as its primary distributor poses significant financial risks if execution issues arise.
- Valuation Comparison: Despite Celsius's significantly higher revenue growth rate, its forward P/E ratio stands at 17.4x, lower than Coca-Cola's 24.9x, reflecting differing market expectations regarding future growth potential.
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Analyst Views on KO
Wall Street analysts forecast KO stock price to fall
14 Analyst Rating
13 Buy
1 Hold
0 Sell
Strong Buy
Current: 81.170
Low
71.00
Averages
79.33
High
85.00
Current: 81.170
Low
71.00
Averages
79.33
High
85.00
About KO
The Coca-Cola Company is a beverage company. The Company's segments include Europe, Middle East and Africa (EMEA); Latin America; North America; Asia Pacific, and Bottling Investments. It sells multiple brands across several beverage categories worldwide. Its portfolio of sparkling soft drink brands includes Coca-Cola, Sprite and Fanta. Its water, sports, coffee and tea brands include Dasani, smartwater, vitaminwater, Topo Chico, BODYARMOR, Powerade, Costa, Georgia, Fuze Tea, Gold Peak and Ayataka. Its juice, value-added dairy and plant-based beverage brands include Minute Maid, Simply, innocent, Del Valle, fairlife and Santa Clara. It operates in two lines of business: concentrate operations and finished product operations. Its concentrate operations sell beverage concentrates, syrups, including fountain syrups, and certain finished beverages to authorized bottling operations. Its finished product operations sell sparkling soft drinks and a variety of other finished beverages.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Colgate's Resilience: Colgate raised its quarterly dividend in March, continuing a long streak of payout growth, benefiting from its strong market position in oral care and growth potential in emerging markets, which helps it adapt to economic fluctuations.
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See More
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- Delta Airlines Reinvestment: Buffett's reinvestment in Delta Airlines after a six-year hiatus sees the holding's value increase from $2.6 billion to $3.0 billion, reflecting a 14.5% rise, showcasing Abel's early fondness for airline stocks, despite Buffett's non-involvement in this decision.
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See More
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- Coca-Cola's Sustained Growth: The Coca-Cola Company approved its 64th consecutive annual dividend increase in February, raising the annual payout from $2.04 to $2.12 per share, reflecting its strong pricing power and high gross margins within a global network of independent bottlers, despite modest volume growth in developed markets.
- Procter & Gamble's Cash Flow Stability: Procter & Gamble declared its 69th consecutive annual dividend increase in April, supported by a portfolio of leading brands across various categories, ensuring predictable free cash flow that covers dividends, buybacks, and product development funding needs.
- Colgate's Resilience: Colgate-Palmolive raised its quarterly dividend in March, benefiting from the recession-resistant nature of toothpaste and oral care products, while its exposure to emerging markets provides volume growth advantages over mature U.S. competitors.
- Walmart's Advertising Revenue Growth: Walmart extended its dividend growth streak to 53 years in February, increasing its quarterly payout to $0.248 per share, with its advertising business generating approximately $6.4 billion in revenue, showcasing operational leverage and success in its membership program.
See More
Greg Abel's Investment Strategy as Buffett's Successor
- Portfolio Changes: New CEO Greg Abel exited 16 stock positions in his first quarter, indicating a shift in investment strategy from Warren Buffett, which may influence market expectations regarding Berkshire's future investment direction.
- Coca-Cola Investment: Abel and Buffett's shared confidence in Coca-Cola, with 400 million shares generating approximately $800 million in annual income and boasting 64 consecutive years of dividend growth, underscores its significance for stable income and capital appreciation.
- Alphabet Stake Increase: Abel tripled Berkshire's stake in Alphabet from 17.8 million to 57.8 million shares, making it the fifth-largest position worth $26 billion, reflecting a reassessment of technology stocks and their growth potential.
- Ally Financial Outlook: Although Ally Financial's stock performance has been modest, projected revenue growth of around 20% and strong buy ratings from analysts indicate confidence in its potential within the emerging online banking sector.
See More
Coca-Cola and Walmart Maintain Dividend King Status
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- Asset-Light Model: Coca-Cola's asset-light business model enhances profit margins by selling concentrates and syrups to distribution partners, reducing reliance on costly machinery and improving overall operational efficiency.
- Walmart's Diversified Growth: Walmart shows impressive performance in high-margin non-retail businesses, generating $713.2 billion in revenue and $22.3 billion in net income last year, indicating strong profitability even amid economic fluctuations.
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See More
