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 readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool