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PepsiCo vs. Vita Coco: Which Beverage Stock Offers Better Growth?
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Key Takeaways
PEP delivers global scale, diversified portfolio, and resilience, amid margin pressures and slowing volumes.
COCO dominates the U.S. coconut water segment, driving strong sales, profitability, and brand-focused growth.
COCO's share rally and earnings outlook, reflecting investor confidence in its niche leadership and momentum.
In the fast-evolving beverage market, PepsiCo Inc. (PEP - Free Report) and The Vita Coco Company Inc. (COCO - Free Report) represent two very different paths to consumer relevance and two vastly different positions on the market share spectrum.
PepsiCo stands as a global beverage heavyweight, commanding meaningful share across carbonated soft drinks, sports drinks and emerging functional categories through its unmatched scale and distribution reach. Vita Coco, in contrast, is a category specialist, built almost entirely around coconut water, where it holds a leading position in the United States and has become synonymous with the segment itself.
This contrast goes beyond size. PepsiCo’s diversified portfolio allows it to spread risk across categories and geographies, while Vita Coco’s focused business model offers purity of brand, agility and deep penetration within a single, health-oriented category. As consumer demand shifts toward hydration, natural ingredients and functional benefits, the competitive question is not just about scale, but about positioning.
This face-off explores how a global beverage titan and a niche category leader compete for relevance, shelf space and growth in an increasingly fragmented drinks landscape.
The Case for PEP Stock
PepsiCo’s investment case is fundamentally anchored in its scale, category leadership and diversified exposure across the global soft drinks industry. The company holds a significant share of the carbonated soft drink market through Trademark Pepsi while steadily expanding its presence in faster-growing segments, such as zero-sugar, flavored colas, functional hydration and modern soda.
Management continues to report market share gains across carbonated soft drinks in a majority of its top international markets, highlighting the resilience of PepsiCo’s brands even as consumer preferences shift toward healthier and more functional options.
PepsiCo benefits from a broad, well-balanced portfolio that spans price points, consumption occasions and demographics. This diversification reduces reliance on any single category and allows the company to adapt to changing demand patterns. Its emphasis on affordability, permissibility and functionality reflects a pragmatic response to value-conscious consumers, supported by sharper price-pack architecture and expanded presence in away-from-home and digital channels.
However, recent performance highlights a more challenging near-term setup. While revenue growth has remained positive, it has been modest and increasingly reliant on pricing and portfolio mix rather than broad-based volume expansion. Cost pressures from commodities, packaging, labor and tariffs continue to weigh on margins, limiting earnings leverage despite ongoing productivity initiatives. At the same time, demand softness in parts of North America and more cautious consumer spending have constrained a faster recovery in core categories.
The Case for COCO Stock
Vita Coco has a dominant position within the coconut water segment, a fast-growing niche of the broader soft drinks industry. While the company represents a small share of the overall global soft drinks market, it commands a leading share of the U.S. coconut water category, effectively defining the segment itself. In the third quarter of 2025, Vita Coco Coconut Water delivered strong volume and revenue growth across both domestic and international markets, reinforcing its status as the category leader and benefiting from rising consumer demand for natural hydration and functional beverages.
Vita Coco operates a focused, asset-light business model centered on brand strength, disciplined portfolio expansion and targeted innovation. The flagship Vita Coco brand remains the growth engine, supported by selective extensions, such as Vita Coco Treats and functional offerings that broaden usage occasions without diluting brand equity. Marketing and digital engagement play a central role in reaching health-conscious, younger consumers who prioritize clean labels and lifestyle alignment. This focused approach contrasts with diversified beverage peers and allows Vita Coco to move quickly within its core category while maintaining premium positioning.
Vita Coco’s recent performance underscores strong execution. The company posted sharp gains in net sales, profitability and adjusted EBITDA during the quarter, supported by volume growth and pricing. Despite margin pressure from tariffs and input costs, cash generation remains robust, supported by a debt-free balance sheet and disciplined capital deployment. While category concentration increases risk, Vita Coco’s leadership, balance sheet strength and sustained demand trends support a compelling, albeit more narrowly defined, growth-driven investment profile.
Price Performance & Valuation of PEP & COCO
In the past year, shares of PepsiCo have tumbled 3.1% against Vita Coco’s rally of 35.2%. Vita Coco has clearly outperformed PepsiCo in the market. Vita Coco’s strong share-price rally reflects investor confidence in its category leadership, accelerating growth and expanding profitability. In contrast, PepsiCo’s decline signals concerns around slowing volumes, margin pressures and limited near-term upside, highlighting the market’s current preference for focused, high-growth beverage plays.
Image Source: Zacks Investment Research
From a valuation standpoint, PEP currently trades at a lower forward price-to-earnings (P/E) multiple of 16.81X compared with Vita Coco’s 32.73X, making it more attractively priced, driven by its earnings and diversified revenue stream.
Image Source: Zacks Investment Research
How Does Zacks Consensus Estimate Compare for PEP & COCO?
PepsiCo’s EPS estimate for 2025 and 2026 has been unchanged in the last 30 days. PEP’s 2025 revenues are projected to increase 1.9% year over year to $93.6 billion, while EPS is expected to decline 0.5% year over year to $8.12.
Image Source: Zacks Investment Research
Vita Coco’s EPS estimates for 2025 and 2026 have been unchanged in the past 30 days. COCO’s 2025 revenues and EPS are expected to increase 18% and 15% year over year to $608.9 million and $1.23 per share, respectively.
Image Source: Zacks Investment Research
PEP vs. COCO: Who Has the Edge?
PepsiCo offers scale, stability and a diversified portfolio that provides resilience but limits near-term upside. Slower volume trends, margin pressures and a cautious consumer environment have weighed on performance, positioning the stock more as a defensive holding than a growth play.
Vita Coco, meanwhile, stands out as the clear winner. Strong share returns reflect investor confidence in its category leadership, focused business model and robust earnings growth outlook. Its premium valuation underscores optimism around long-term growth potential, making Vita Coco the more compelling choice for investors seeking momentum and upside. PEP currently carries a Zacks Rank #4 (Sell), while COCO has a Zacks Rank #3 (Hold).
Image: Bigstock
PepsiCo vs. Vita Coco: Which Beverage Stock Offers Better Growth?
Key Takeaways
In the fast-evolving beverage market, PepsiCo Inc. (PEP - Free Report) and The Vita Coco Company Inc. (COCO - Free Report) represent two very different paths to consumer relevance and two vastly different positions on the market share spectrum.
PepsiCo stands as a global beverage heavyweight, commanding meaningful share across carbonated soft drinks, sports drinks and emerging functional categories through its unmatched scale and distribution reach. Vita Coco, in contrast, is a category specialist, built almost entirely around coconut water, where it holds a leading position in the United States and has become synonymous with the segment itself.
This contrast goes beyond size. PepsiCo’s diversified portfolio allows it to spread risk across categories and geographies, while Vita Coco’s focused business model offers purity of brand, agility and deep penetration within a single, health-oriented category. As consumer demand shifts toward hydration, natural ingredients and functional benefits, the competitive question is not just about scale, but about positioning.
This face-off explores how a global beverage titan and a niche category leader compete for relevance, shelf space and growth in an increasingly fragmented drinks landscape.
The Case for PEP Stock
PepsiCo’s investment case is fundamentally anchored in its scale, category leadership and diversified exposure across the global soft drinks industry. The company holds a significant share of the carbonated soft drink market through Trademark Pepsi while steadily expanding its presence in faster-growing segments, such as zero-sugar, flavored colas, functional hydration and modern soda.
Management continues to report market share gains across carbonated soft drinks in a majority of its top international markets, highlighting the resilience of PepsiCo’s brands even as consumer preferences shift toward healthier and more functional options.
PepsiCo benefits from a broad, well-balanced portfolio that spans price points, consumption occasions and demographics. This diversification reduces reliance on any single category and allows the company to adapt to changing demand patterns. Its emphasis on affordability, permissibility and functionality reflects a pragmatic response to value-conscious consumers, supported by sharper price-pack architecture and expanded presence in away-from-home and digital channels.
However, recent performance highlights a more challenging near-term setup. While revenue growth has remained positive, it has been modest and increasingly reliant on pricing and portfolio mix rather than broad-based volume expansion. Cost pressures from commodities, packaging, labor and tariffs continue to weigh on margins, limiting earnings leverage despite ongoing productivity initiatives. At the same time, demand softness in parts of North America and more cautious consumer spending have constrained a faster recovery in core categories.
The Case for COCO Stock
Vita Coco has a dominant position within the coconut water segment, a fast-growing niche of the broader soft drinks industry. While the company represents a small share of the overall global soft drinks market, it commands a leading share of the U.S. coconut water category, effectively defining the segment itself. In the third quarter of 2025, Vita Coco Coconut Water delivered strong volume and revenue growth across both domestic and international markets, reinforcing its status as the category leader and benefiting from rising consumer demand for natural hydration and functional beverages.
Vita Coco operates a focused, asset-light business model centered on brand strength, disciplined portfolio expansion and targeted innovation. The flagship Vita Coco brand remains the growth engine, supported by selective extensions, such as Vita Coco Treats and functional offerings that broaden usage occasions without diluting brand equity. Marketing and digital engagement play a central role in reaching health-conscious, younger consumers who prioritize clean labels and lifestyle alignment. This focused approach contrasts with diversified beverage peers and allows Vita Coco to move quickly within its core category while maintaining premium positioning.
Vita Coco’s recent performance underscores strong execution. The company posted sharp gains in net sales, profitability and adjusted EBITDA during the quarter, supported by volume growth and pricing. Despite margin pressure from tariffs and input costs, cash generation remains robust, supported by a debt-free balance sheet and disciplined capital deployment. While category concentration increases risk, Vita Coco’s leadership, balance sheet strength and sustained demand trends support a compelling, albeit more narrowly defined, growth-driven investment profile.
Price Performance & Valuation of PEP & COCO
In the past year, shares of PepsiCo have tumbled 3.1% against Vita Coco’s rally of 35.2%. Vita Coco has clearly outperformed PepsiCo in the market. Vita Coco’s strong share-price rally reflects investor confidence in its category leadership, accelerating growth and expanding profitability. In contrast, PepsiCo’s decline signals concerns around slowing volumes, margin pressures and limited near-term upside, highlighting the market’s current preference for focused, high-growth beverage plays.
Image Source: Zacks Investment Research
From a valuation standpoint, PEP currently trades at a lower forward price-to-earnings (P/E) multiple of 16.81X compared with Vita Coco’s 32.73X, making it more attractively priced, driven by its earnings and diversified revenue stream.
Image Source: Zacks Investment Research
How Does Zacks Consensus Estimate Compare for PEP & COCO?
PepsiCo’s EPS estimate for 2025 and 2026 has been unchanged in the last 30 days. PEP’s 2025 revenues are projected to increase 1.9% year over year to $93.6 billion, while EPS is expected to decline 0.5% year over year to $8.12.
Image Source: Zacks Investment Research
Vita Coco’s EPS estimates for 2025 and 2026 have been unchanged in the past 30 days. COCO’s 2025 revenues and EPS are expected to increase 18% and 15% year over year to $608.9 million and $1.23 per share, respectively.
Image Source: Zacks Investment Research
PEP vs. COCO: Who Has the Edge?
PepsiCo offers scale, stability and a diversified portfolio that provides resilience but limits near-term upside. Slower volume trends, margin pressures and a cautious consumer environment have weighed on performance, positioning the stock more as a defensive holding than a growth play.
Vita Coco, meanwhile, stands out as the clear winner. Strong share returns reflect investor confidence in its category leadership, focused business model and robust earnings growth outlook. Its premium valuation underscores optimism around long-term growth potential, making Vita Coco the more compelling choice for investors seeking momentum and upside. PEP currently carries a Zacks Rank #4 (Sell), while COCO has a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.