Coca-Cola and Celsius: A Battle for Investors' Attention

Coca-Cola shows strong growth while Celsius faces challenges. Investors must weigh their options carefully.

Date: 09-03-2025

AI Rating: 7

Coca-Cola Analysis: Coca-Cola has demonstrated sizable financial health, with organic revenue increasing by 12% compared to 2023. This rise is attributed to both heightened unit volumes and strategic pricing initiatives. The company also gained market share, signaling strength in the competitive landscape.

Notably, Coca-Cola's adjusted earnings per share (EPS) grew by 17% on a currency-neutral basis, indicating effective management and a shift towards premium products. For the upcoming year, Coca-Cola anticipates organic revenue growth of 5% to 6% and an 8% to 10% increase in EPS, showcasing continued optimism among investors.

Celsius Analysis: Contrastingly, Celsius has faced significant hurdles, with its annual revenue growth only at 3% for 2024, impacted by an inventory surplus at its distributor, PepsiCo. The EPS of $0.70 reflects a decline of 10% from 2023, highlighting a challenging environment for the brand.

However, Celsius still possesses strong fundamentals and has announced an acquisition of Alani Nu, which could strengthen its market presence in the functional energy drink segment. Analysts project a rebound with a forecasted EPS of $0.96 for 2025—a 37% increase over 2024—with total revenue jumping by more than 30%. Although Celsius currently trades at a higher forward P/E of 27, the strong outlook may justify this premium, especially when compared to Coca-Cola's forward P/E of 24.

Stocks: KO CELH