The Coca-Cola Company and Celsius Holdings, Inc. are two prominent players in the non-alcoholic beverages industry, each representing different market segments and growth strategies. Coca-Cola, a century-old giant, leads with a vast product portfolio and global reach, while Celsius focuses on innovative functional energy drinks appealing to health-conscious consumers. This comparison will help you identify which company presents the most compelling investment opportunity in today’s evolving beverage landscape.
Table of contents
Companies Overview
I will begin the comparison between The Coca-Cola Company and Celsius Holdings, Inc. by providing an overview of these two companies and their main differences.
The Coca-Cola Company Overview
The Coca-Cola Company is a leading global beverage firm headquartered in Atlanta, Georgia. Established in 1886, it manufactures, markets, and sells a diverse range of nonalcoholic beverages, including sparkling soft drinks, water, coffee, tea, juice, and plant-based drinks. It operates through an extensive network of independent bottlers, distributors, and retailers, maintaining a dominant position in the nonalcoholic beverage industry.
Celsius Holdings, Inc. Overview
Celsius Holdings, based in Boca Raton, Florida, develops and sells functional drinks and liquid supplements internationally. Founded in 2004, the company offers carbonated and non-carbonated energy drinks under several brands and distributes its products through direct-to-store delivery, retailers, health clubs, and e-commerce platforms. Celsius focuses on the growing segment of functional and performance beverages with a smaller workforce and market capitalization compared to larger peers.
Key similarities and differences
Both companies operate in the nonalcoholic beverages industry and target health-conscious consumers, but their scale and product focus differ significantly. Coca-Cola offers a broad portfolio of traditional and innovative beverages globally, relying on extensive distribution networks. Celsius concentrates on functional energy drinks and supplements with a more targeted product range, leveraging direct and retail channels. Market capitalization and employee count highlight Coca-Cola’s status as a much larger, established player versus Celsius’s niche positioning.
Income Statement Comparison
The table below compares key income statement metrics for The Coca-Cola Company and Celsius Holdings, Inc. for the fiscal year 2024, providing a snapshot of their financial performance.
| Metric | The Coca-Cola Company | Celsius Holdings, Inc. |
|---|---|---|
| Market Cap | 303.4B | 13.7B |
| Revenue | 47.1B | 1.36B |
| EBITDA | 15.8B | 163M |
| EBIT | 14.7B | 156M |
| Net Income | 10.6B | 108M |
| EPS | 2.47 | 0.46 |
| Fiscal Year | 2024 | 2024 |
Income Statement Interpretations
The Coca-Cola Company
The Coca-Cola Company showed steady revenue growth from $33B in 2020 to $47.1B in 2024, with net income rising from $7.7B to $10.6B. Margins remained strong, with a gross margin around 61% and a net margin near 23%, though slight margin contraction occurred recently. In 2024, revenue growth slowed to 2.86%, and net margin declined by 3.53%, signaling some pressure on profitability.
Celsius Holdings, Inc.
Celsius Holdings grew revenue impressively from $130M in 2020 to $1.36B in 2024, with net income swinging from a loss in 2022 to $145M positive in 2024. Margins improved notably, with gross margin at 50.2% and net margin at 10.7%. However, 2024 saw a 2.85% revenue increase but a sharp 41.5% drop in EBIT and 37.8% decline in net margin, indicating recent operational challenges.
Which one has the stronger fundamentals?
Both companies demonstrate favorable long-term growth and income statement strength. Coca-Cola boasts robust and stable margins with consistent profit growth, despite recent margin pressure. Celsius shows rapid growth and improving margins but faces volatility and recent earnings contraction. Thus, Coca-Cola’s fundamentals reflect more stability, while Celsius offers high growth with greater risk in profitability.
Financial Ratios Comparison
Below is a comparison of key financial ratios for The Coca-Cola Company (KO) and Celsius Holdings, Inc. (CELH) based on their most recent fiscal year data, 2024.
| Ratios | The Coca-Cola Company (KO) | Celsius Holdings, Inc. (CELH) |
|---|---|---|
| ROE | 42.77% | 11.85% |
| ROIC | 10.46% | 8.25% |
| P/E | 25.24 | 42.43 |
| P/B | 10.79 | 5.03 |
| Current Ratio | 1.03 | 3.62 |
| Quick Ratio | 0.84 | 3.26 |
| D/E (Debt-to-Equity) | 1.84 | 0.02 |
| Debt-to-Assets | 45.49% | 1.15% |
| Interest Coverage | 6.03 | 0 |
| Asset Turnover | 0.47 | 0.77 |
| Fixed Asset Turnover | 4.10 | 17.51 |
| Payout Ratio | 78.63% | 18.96% |
| Dividend Yield | 3.12% | 0.45% |
Interpretation of the Ratios
The Coca-Cola Company
The Coca-Cola Company shows a balanced ratio profile with strong net margin (22.59%) and return on equity (42.77%), both favorable, indicating efficient profitability and shareholder value creation. However, its price-to-earnings (P/E) and price-to-book (P/B) ratios are unfavorable, suggesting a premium valuation. The dividend yield at 3.12% is supported by consistent payouts and moderate payout ratios, reflecting steady shareholder returns without excessive risk from distributions or buybacks.
Celsius Holdings, Inc.
Celsius Holdings presents mixed ratios with a favorable net margin of 10.7% and a strong interest coverage ratio, signaling solid operating performance and low debt risks. Yet, its P/E ratio is high and unfavorable, indicating potential overvaluation. The absence of dividends aligns with its reinvestment strategy focused on growth and R&D, supported by a very low debt-to-equity ratio and a robust current ratio, reflecting liquidity strength and conservative financial management.
Which one has the best ratios?
Both companies share a slightly favorable global ratios opinion with 50% favorable metrics. Coca-Cola excels in profitability and dividend yield but has higher leverage and valuation concerns, whereas Celsius boasts superior liquidity, lower leverage, and growth orientation but trades at a higher valuation with no dividend yield. The best ratios depend on investors’ preference for income versus growth and risk tolerance.
Strategic Positioning
This section compares the strategic positioning of The Coca-Cola Company and Celsius Holdings, Inc., focusing on market position, key segments, and exposure to technological disruption:
The Coca-Cola Company
- Leading global beverage player with strong competitive pressure from peers.
- Diverse portfolio including sparkling drinks, water, coffee, tea, juices, and plant-based beverages.
- Exposure to shifts in beverage trends; adapts through innovation in health and wellness categories.
Celsius Holdings, Inc.
- Smaller market cap, competing in niche functional energy drinks with moderate pressure.
- Concentrated on functional energy drinks and dietary supplements, targeting health-conscious consumers.
- Faces disruption risks but leverages functional ingredients and new product formats for growth.
The Coca-Cola Company vs Celsius Holdings, Inc. Positioning
The Coca-Cola Company’s diversified portfolio spans numerous beverage categories, providing broad market exposure but higher complexity. Celsius focuses on a concentrated segment of functional drinks, allowing targeted innovation but limited diversification compared to Coca-Cola.
Which has the best competitive advantage?
The Coca-Cola Company demonstrates a very favorable moat with consistent value creation and durable competitive advantage. Celsius shows slightly favorable moat status with growing profitability but no established competitive moat yet.
Stock Comparison
The stock prices of The Coca-Cola Company and Celsius Holdings, Inc. exhibited contrasting movements over the past 12 months, with Coca-Cola showing steady gains and Celsius facing notable declines amid differing trading dynamics.
Trend Analysis
The Coca-Cola Company’s stock showed a bullish trend over the past year with a 15.2% price increase, though the upward momentum has decelerated recently. The stock ranged between 58.28 and 73.12, showing moderate volatility with a 4.08 standard deviation.
Celsius Holdings, Inc. experienced a bearish trend with a 17.11% price decline over the same period, despite accelerating downward momentum and higher volatility, reflected by an 18.64 standard deviation and a wide price range from 22.34 to 95.15.
Comparing both stocks, Coca-Cola delivered the highest market performance with a positive price change, while Celsius’s stock significantly underperformed, sustaining substantial losses over the past year.
Target Prices
The current target price consensus from recognized analysts shows moderate upside potential for both The Coca-Cola Company and Celsius Holdings, Inc.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| The Coca-Cola Company | 82 | 76 | 79 |
| Celsius Holdings, Inc. | 74 | 60 | 68.33 |
Analysts expect Coca-Cola’s stock to rise moderately from its current price of 70.5 USD to around 79 USD on average, while Celsius Holdings shows a higher relative upside with consensus targets well above its current 53.09 USD price.
Analyst Opinions Comparison
This section compares analysts’ ratings and financial scores for The Coca-Cola Company and Celsius Holdings, Inc.:
Rating Comparison
The Coca-Cola Company Rating
- Rating: B+, considered very favorable by analysts.
- Discounted Cash Flow Score: 5, indicating very favorable valuation metrics.
- ROE Score: 5, showing very efficient profit generation from equity.
- ROA Score: 5, demonstrating excellent asset utilization.
- Debt To Equity Score: 1, reflecting very unfavorable financial leverage.
- Overall Score: 3, a moderate overall financial standing.
Celsius Holdings, Inc. Rating
- Rating: C+, also marked very favorable despite lower scores.
- Discounted Cash Flow Score: 3, reflecting moderate valuation metrics.
- ROE Score: 2, suggesting moderate efficiency in generating profit.
- ROA Score: 2, indicating moderate effectiveness in asset use.
- Debt To Equity Score: 3, showing moderate debt management.
- Overall Score: 2, representing a moderate but lower overall standing.
Which one is the best rated?
The Coca-Cola Company holds a higher rating (B+) and superior scores in discounted cash flow, ROE, and ROA compared to Celsius Holdings, which has a lower C+ rating and moderate scores. However, Coca-Cola’s debt-to-equity score is less favorable.
Scores Comparison
Here is a comparison of the financial scores for KO and CELH:
KO Scores
- Altman Z-Score: 4.59, indicating a safe zone with low bankruptcy risk.
- Piotroski Score: 7, classified as strong financial health.
CELH Scores
- Altman Z-Score: 3.66, also in a safe zone with moderate-low bankruptcy risk.
- Piotroski Score: 5, reflecting average financial strength.
Which company has the best scores?
Based on the provided data, KO has higher Altman Z-Score and Piotroski Score values than CELH. KO’s scores indicate stronger financial health and lower bankruptcy risk compared to CELH.
Grades Comparison
Here is a comparison of recent grades from recognized financial institutions for both companies:
The Coca-Cola Company Grades
The table below shows the latest grades assigned by major financial firms:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| B of A Securities | Maintain | Buy | 2025-11-07 |
| Barclays | Maintain | Overweight | 2025-10-23 |
| Wells Fargo | Maintain | Overweight | 2025-10-22 |
| TD Cowen | Maintain | Buy | 2025-10-22 |
| Piper Sandler | Maintain | Overweight | 2025-10-22 |
| Wells Fargo | Maintain | Overweight | 2025-09-25 |
| UBS | Maintain | Buy | 2025-09-11 |
| JP Morgan | Maintain | Overweight | 2025-07-23 |
| UBS | Maintain | Buy | 2025-07-23 |
| BNP Paribas | Maintain | Outperform | 2025-07-21 |
The Coca-Cola Company consistently receives buy or overweight ratings, indicating a generally positive outlook from analysts.
Celsius Holdings, Inc. Grades
The latest grades from reliable sources are summarized in the table below:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Needham | Maintain | Buy | 2026-01-07 |
| B of A Securities | Maintain | Underperform | 2025-12-19 |
| Piper Sandler | Maintain | Overweight | 2025-12-17 |
| B of A Securities | Maintain | Underperform | 2025-11-07 |
| Stifel | Maintain | Buy | 2025-11-07 |
| JP Morgan | Maintain | Overweight | 2025-11-07 |
| Citigroup | Maintain | Buy | 2025-11-07 |
| UBS | Maintain | Buy | 2025-11-07 |
| Stifel | Maintain | Buy | 2025-10-24 |
| JP Morgan | Maintain | Overweight | 2025-10-24 |
Celsius Holdings shows a mixed rating profile with several buys and overweight ratings but also notable underperform assessments from B of A Securities.
Which company has the best grades?
The Coca-Cola Company has more consistently positive grades, primarily buy and overweight, while Celsius Holdings presents a more mixed picture with some underperform ratings alongside buys. Investors might interpret Coca-Cola’s steadier grades as a sign of lower perceived risk compared to Celsius Holdings’ more varied assessments.
Strengths and Weaknesses
Below is a comparison table highlighting the key strengths and weaknesses of The Coca-Cola Company (KO) and Celsius Holdings, Inc. (CELH) based on recent financial and strategic data.
| Criterion | The Coca-Cola Company (KO) | Celsius Holdings, Inc. (CELH) |
|---|---|---|
| Diversification | Highly diversified with multiple segments including bottling investments and global ventures, generating over $38B in Pacific segment revenue alone | Limited diversification, primarily focused on one main segment with $1.36B revenue in 2024 |
| Profitability | Strong profitability with 22.6% net margin, ROIC 10.46%, and a 3.12% dividend yield | Moderate profitability with 10.7% net margin, ROIC 8.25%, and low dividend yield of 0.45% |
| Innovation | Continuous innovation with durable competitive advantage; strong global brand presence | Growing ROIC indicates improving profitability, but still lacks a strong competitive moat |
| Global presence | Extensive global operations and well-established brand | More limited global footprint and market penetration |
| Market Share | Large market share in beverages, benefiting from economies of scale | Smaller market share, focused on niche energy drink market |
Key takeaways: Coca-Cola’s strong diversification, profitability, and global presence make it a value creator with a durable competitive advantage. Celsius shows potential with improving profitability but remains less diversified and lacks a robust economic moat. Investors should weigh stability versus growth prospects carefully.
Risk Analysis
Below is a comparative table of key risks for The Coca-Cola Company (KO) and Celsius Holdings, Inc. (CELH) based on the most recent financial and operational data from 2024.
| Metric | The Coca-Cola Company (KO) | Celsius Holdings, Inc. (CELH) |
|---|---|---|
| Market Risk | Low beta at 0.39; stable market presence but high valuation ratios may pressure stock price | Moderate beta at 0.88; growth-oriented but volatile stock with high P/E |
| Debt Level | High debt-to-equity ratio (1.84, unfavorable); interest coverage ratio strong at 8.9 | Very low debt (D/E 0.02, favorable); excellent interest coverage |
| Regulatory Risk | Moderate, given global operations and beverage regulations | Moderate, regulatory exposure in multiple markets but smaller scale |
| Operational Risk | Large, complex supply chain with 69.7K employees; potential logistic disruptions | Smaller scale with 1.1K employees; growth-related operational challenges |
| Environmental Risk | Significant sustainability initiatives but exposed to water scarcity and packaging regulations | Emerging sustainability practices; less exposure but growing scrutiny |
| Geopolitical Risk | Moderate, global footprint with exposure to international trade tensions | Lower, mostly North America and limited global footprint |
The most impactful risks are KO’s high leverage, which increases financial risk despite strong cash flow, and CELH’s market volatility linked to its growth profile and valuation. KO’s diversified global presence also subjects it to geopolitical and environmental regulatory risks, while CELH faces operational scaling challenges as it expands. Both companies maintain a “safe zone” Altman Z-score, indicating low bankruptcy risk, but KO’s debt level requires cautious monitoring.
Which Stock to Choose?
The Coca-Cola Company (KO) shows steady income growth with favorable profitability and financial ratios, including a high return on equity of 42.77% and a strong economic moat indicated by a very favorable ROIC versus WACC. However, it carries moderate debt levels and mixed valuation metrics, reflected in a B+ rating.
Celsius Holdings, Inc. (CELH) exhibits rapid revenue and net income growth over the longer term but recent income metrics show some declines. Its financial ratios are slightly favorable overall, with low debt and improving profitability, yet it has a moderate C+ rating and a less established economic moat.
For investors prioritizing stability and proven value creation, KO’s very favorable rating and durable competitive advantage might appear more suitable. Conversely, those with a risk-tolerant profile focusing on high growth potential could view CELH’s accelerating income and improving profitability as attractive, despite its higher volatility and moderate rating.
Disclaimer: Investment carries a risk of loss of initial capital. The past performance is not a reliable indicator of future results. Be sure to understand risks before making an investment decision.
Go Further
I encourage you to read the complete analyses of The Coca-Cola Company and Celsius Holdings, Inc. to enhance your investment decisions:
