The Coca-Cola Company (KO) and Coca-Cola Europacific Partners PLC (CCEP) are two dominant players in the non-alcoholic beverages industry, each with a strong global presence and extensive brand portfolios. KO leads as a global beverage giant headquartered in the US, while CCEP operates as a major bottler and distributor focused on Europe and the Pacific region. This article will dissect their market strategies and innovation efforts to reveal which company presents a more compelling investment opportunity for your portfolio.
Table of contents
Companies Overview
I will begin the comparison between The Coca-Cola Company and Coca-Cola Europacific Partners PLC 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 that manufactures, markets, and sells a diverse portfolio of nonalcoholic drinks including soft drinks, water, coffee, tea, juices, and plant-based beverages. Founded in 1886 and headquartered in Atlanta, GA, it operates through a network of independent bottlers, distributors, and retailers. The company is well-established in the consumer defensive sector with a market cap of $303B and employs around 69,700 people worldwide.
Coca-Cola Europacific Partners PLC Overview
Coca-Cola Europacific Partners PLC is a major producer and distributor of non-alcoholic ready-to-drink beverages, offering a broad range of soft drinks, waters, energy drinks, and juices. Established in 1986 and based in Uxbridge, UK, it serves approximately 600 million consumers. The company operates in the consumer defensive sector with a market cap of $40.4B and employs about 41,000 people, focusing on bottling and distribution operations primarily in Europe and the Pacific region.
Key similarities and differences
Both companies operate in the non-alcoholic beverages industry under the consumer defensive sector and offer products under well-known brands such as Coca-Cola, Diet Coke, Fanta, and Sprite. The Coca-Cola Company has a broader global presence and a larger market cap, primarily focusing on brand ownership and product innovation, while Coca-Cola Europacific Partners emphasizes bottling and distribution in Europe and Pacific markets with a smaller market cap and workforce. Their business models complement each other but differ in geographic focus and operational roles.
Income Statement Comparison
This table presents a side-by-side comparison of key income statement metrics for The Coca-Cola Company and Coca-Cola Europacific Partners PLC for the fiscal year 2024.
| Metric | The Coca-Cola Company (KO) | Coca-Cola Europacific Partners PLC (CCEP) |
|---|---|---|
| Market Cap | 303.4B USD | 40.4B EUR |
| Revenue | 47.1B USD | 20.4B EUR |
| EBITDA | 15.8B USD | 3.3B EUR |
| EBIT | 14.7B USD | 2.3B EUR |
| Net Income | 10.6B USD | 1.4B EUR |
| EPS | 2.47 USD | 3.08 EUR |
| Fiscal Year | 2024 | 2024 |
Income Statement Interpretations
The Coca-Cola Company
From 2020 to 2024, The Coca-Cola Company showed steady revenue growth from $33B to $47B, with net income rising from $7.75B to $10.63B. Margins remained generally stable, with a slight decline in net margin by 3.53% in the last year. The 2024 results reveal a moderate 2.86% revenue growth and a minor dip in EPS, reflecting some pressure on profitability despite favorable gross and EBIT margins.
Coca-Cola Europacific Partners PLC
Between 2020 and 2024, Coca-Cola Europacific Partners increased revenue substantially from €10.6B to €20.4B, almost doubling net income from €498M to €1.42B. Margins were favorable overall, although net margin contracted by nearly 24% in 2024. The recent year saw strong revenue and gross profit growth but declined EBIT and EPS, indicating rising operating expenses affecting bottom-line growth.
Which one has the stronger fundamentals?
Both companies exhibit favorable income statement fundamentals with solid revenue and net income growth over the period. The Coca-Cola Company shows more stability in margins but slower recent growth and slight margin deterioration. Coca-Cola Europacific Partners demonstrates higher overall growth rates and margin improvements long term but faced sharper net margin and EPS declines in the latest year. The assessment favors neither unequivocally, highlighting different strengths and challenges.
Financial Ratios Comparison
The table below provides a side-by-side comparison of key financial ratios for The Coca-Cola Company (KO) and Coca-Cola Europacific Partners PLC (CCEP) for the fiscal year 2024, highlighting profitability, liquidity, leverage, efficiency, and dividend metrics.
| Ratios | The Coca-Cola Company (KO) | Coca-Cola Europacific Partners PLC (CCEP) |
|---|---|---|
| ROE | 42.8% | 16.7% |
| ROIC | 10.5% | 6.5% |
| P/E | 25.2 | 24.1 |
| P/B | 10.8 | 4.0 |
| Current Ratio | 1.03 | 0.81 |
| Quick Ratio | 0.84 | 0.62 |
| D/E (Debt-to-Equity) | 1.84 | 1.33 |
| Debt-to-Assets | 45.5% | 36.4% |
| Interest Coverage | 6.03 | 8.81 |
| Asset Turnover | 0.47 | 0.66 |
| Fixed Asset Turnover | 4.10 | 3.18 |
| Payout Ratio | 78.6% | 64.2% |
| Dividend Yield | 3.12% | 2.66% |
Interpretation of the Ratios
The Coca-Cola Company
The Coca-Cola Company shows a strong profitability profile with favorable net margin (22.59%), ROE (42.77%), and ROIC (10.46%), but faces concerns with high P/E (25.24) and P/B (10.79) ratios, and a relatively high debt-to-equity (1.84). Its dividend yield of 3.12% is favorable, supported by dividends and moderate share buybacks, although coverage by free cash flow is limited, posing potential risks.
Coca-Cola Europacific Partners PLC
Coca-Cola Europacific Partners exhibits moderate profitability with neutral net margin (6.94%) and ROIC (6.53%), but favorable ROE (16.7%) and interest coverage (9.67). Its liquidity ratios are weak (current ratio 0.81, quick ratio 0.62), indicating possible short-term risk. The dividend yield of 2.66% is supported, but the company has some unfavorable leverage and valuation metrics to consider.
Which one has the best ratios?
Both companies have a slightly favorable overall ratio profile, but The Coca-Cola Company demonstrates stronger profitability and higher dividend yield, offset by higher leverage and valuation concerns. Coca-Cola Europacific Partners has more balanced leverage and interest coverage but weaker liquidity and profitability. The Coca-Cola Company’s ratios appear more robust in profitability and shareholder returns.
Strategic Positioning
This section compares the strategic positioning of The Coca-Cola Company and Coca-Cola Europacific Partners PLC, focusing on Market position, Key segments, and exposure to disruption:
The Coca-Cola Company
- Global beverage leader with extensive competitive moat; faces moderate industry competition.
- Diversified product portfolio including sparkling drinks, water, coffee, juices, and plant-based beverages.
- Exposure to technological disruption mainly through innovation in beverage offerings and distribution networks.
Coca-Cola Europacific Partners PLC
- Regional bottler and distributor with competitive pressure in European and Pacific markets.
- Focus on non-alcoholic ready-to-drink beverages including soft drinks, energy drinks, and mixers.
- Faces disruption risks in bottling operations and evolving consumer preferences in regional markets.
The Coca-Cola Company vs Coca-Cola Europacific Partners Positioning
The Coca-Cola Company shows a diversified global strategy with broad product offerings and extensive partnerships, while Coca-Cola Europacific Partners concentrates on regional bottling and distribution. The former’s scale and product diversity offer wider market reach, whereas the latter operates with a more focused regional footprint.
Which has the best competitive advantage?
The Coca-Cola Company demonstrates a very favorable moat with ROIC exceeding WACC by 5.2% and growing profitability, indicating a durable competitive advantage. Coca-Cola Europacific Partners shows slightly favorable moat with ROIC below WACC but improving trends, reflecting less established competitive strength.
Stock Comparison
The stock prices of The Coca-Cola Company (KO) and Coca-Cola Europacific Partners PLC (CCEP) have shown notable bullish trends over the past 12 months, with differing acceleration patterns and recent slight shifts in momentum.
Trend Analysis
The Coca-Cola Company (KO) stock experienced a 15.2% increase over the past 12 months, indicating a bullish trend with decelerating momentum. The highest price reached 73.12 and the lowest was 58.28, with moderate volatility (std deviation 4.08).
Coca-Cola Europacific Partners PLC (CCEP) stock rose by 28.19% over the same period, also bullish but with decelerating acceleration. It showed higher volatility (std deviation 8.26), peaking at 100.04 and bottoming at 67.58.
Comparing trends, CCEP outperformed KO with a stronger 28.19% gain versus 15.2%, despite both showing deceleration in growth momentum during the analyzed year.
Target Prices
The current target price consensus for these companies reflects moderate upside potential.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| The Coca-Cola Company | 82 | 76 | 79 |
| Coca-Cola Europacific Partners PLC | 114 | 114 | 114 |
Analysts expect The Coca-Cola Company’s stock to rise from 70.5 USD to around 79 USD, signaling modest growth. Coca-Cola Europacific Partners shows a firm target at 114 USD, well above its current price of 87.89 USD.
Analyst Opinions Comparison
This section compares analysts’ ratings and grades for The Coca-Cola Company and Coca-Cola Europacific Partners PLC:
Rating Comparison
KO Rating
- Rating: B+, considered very favorable by analysts.
- Discounted Cash Flow Score: 5, indicating a very favorable valuation outlook.
- ROE Score: 5, showing excellent profit generation from equity.
- ROA Score: 5, demonstrating very effective asset utilization.
- Debt To Equity Score: 1, reflecting very unfavorable financial risk profile.
- Overall Score: 3, indicating a moderate overall financial standing.
CCEP Rating
- Rating: B, also very favorable according to analysts.
- Discounted Cash Flow Score: 5, also very favorable for valuation.
- ROE Score: 5, equally excellent in generating profit from equity.
- ROA Score: 3, moderate effectiveness in asset utilization.
- Debt To Equity Score: 1, similarly very unfavorable financial risk.
- Overall Score: 3, also indicating a moderate overall financial standing.
Which one is the best rated?
Based strictly on the provided data, KO holds a slight edge over CCEP, mainly due to its higher ROA score of 5 compared to CCEP’s 3, while both share equal ratings in other categories and overall scores.
Scores Comparison
The scores comparison between The Coca-Cola Company and Coca-Cola Europacific Partners PLC is as follows:
KO Scores
- Altman Z-Score: 4.59, indicating a safe zone with low bankruptcy risk.
- Piotroski Score: 7, reflecting strong financial health.
CCEP Scores
- Altman Z-Score: 3.17, indicating a safe zone with low bankruptcy risk.
- Piotroski Score: 5, reflecting average financial health.
Which company has the best scores?
Based on the provided data, KO has a higher Altman Z-Score and a stronger Piotroski Score compared to CCEP, indicating relatively better financial stability and strength.
Grades Comparison
Here is a comparative overview of the grades assigned to The Coca-Cola Company and Coca-Cola Europacific Partners PLC by leading grading firms:
The Coca-Cola Company Grades
The table below shows recent grades from notable financial institutions for The Coca-Cola Company:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| B of A Securities | Buy | Buy | 2025-11-07 |
| Barclays | Hold (Overweight) | Overweight | 2025-10-23 |
| Wells Fargo | Hold (Overweight) | Overweight | 2025-10-22 |
| TD Cowen | Buy | Buy | 2025-10-22 |
| Piper Sandler | Hold (Overweight) | Overweight | 2025-10-22 |
| Wells Fargo | Hold (Overweight) | Overweight | 2025-09-25 |
| UBS | Buy | Buy | 2025-09-11 |
| JP Morgan | Hold (Overweight) | Overweight | 2025-07-23 |
| UBS | Buy | Buy | 2025-07-23 |
| BNP Paribas | Outperform | Outperform | 2025-07-21 |
The Coca-Cola Company’s grades consistently show a positive outlook with a strong consensus on “Buy” and “Overweight” ratings maintained over multiple months.
Coca-Cola Europacific Partners PLC Grades
The following table presents recent grades from reputable grading firms for Coca-Cola Europacific Partners PLC:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| UBS | Buy | Buy | 2026-01-08 |
| Barclays | Hold (Overweight) | Overweight | 2025-08-08 |
| Barclays | Hold (Overweight) | Overweight | 2025-07-15 |
| UBS | Buy | Buy | 2025-07-02 |
| Barclays | Hold (Overweight) | Overweight | 2025-05-01 |
| UBS | Buy | Buy | 2025-04-30 |
| Barclays | Hold (Overweight) | Overweight | 2025-04-11 |
| Barclays | Hold (Overweight) | Overweight | 2025-03-27 |
| Barclays | Hold (Overweight) | Overweight | 2025-03-06 |
| Evercore ISI Group | Outperform | Outperform | 2025-02-18 |
Coca-Cola Europacific Partners PLC also maintains a consistent positive grading pattern, with repeated “Buy” and “Overweight” ratings and an “Outperform” rating from Evercore ISI Group.
Which company has the best grades?
Both companies exhibit strong and stable grades predominantly in the “Buy” and “Overweight” categories, supported by reputable grading firms. The Coca-Cola Company shows a slightly higher number of “Buy” ratings, potentially indicating marginally stronger confidence from analysts, which could influence investor sentiment favorably.
Strengths and Weaknesses
Below is a comparative overview of The Coca-Cola Company (KO) and Coca-Cola Europacific Partners PLC (CCEP) highlighting key strengths and weaknesses based on diversification, profitability, innovation, global presence, and market share.
| Criterion | The Coca-Cola Company (KO) | Coca-Cola Europacific Partners PLC (CCEP) |
|---|---|---|
| Diversification | Strong product mix including Pacific region, bottling, and global ventures generating diversified revenues | Less diversified product portfolio focused mainly on bottling and regional markets |
| Profitability | High net margin (22.59%), ROIC of 10.46%, creating value with a very favorable economic moat | Moderate net margin (6.94%), ROIC of 6.53%, slightly favorable moat but currently shedding value |
| Innovation | Consistent investment in global ventures and bottling innovations supporting growth | Growing ROIC trend indicates improving innovation but still behind KO in value creation |
| Global presence | Extensive global footprint with strong presence in the Pacific and other regions | More regional focus mainly in Europe and Pacific areas |
| Market Share | Large market share with durable competitive advantage and growing profitability | Smaller market share relative to KO, profitability improving but still less dominant |
The Coca-Cola Company demonstrates a durable competitive advantage with strong profitability and global diversification, making it a safer investment. Coca-Cola Europacific Partners shows promising growth in profitability but remains less diversified and currently sheds value, suggesting higher risk but potential upside.
Risk Analysis
Below is a comparative table summarizing key risks for The Coca-Cola Company (KO) and Coca-Cola Europacific Partners PLC (CCEP) based on the most recent data from 2024:
| Metric | The Coca-Cola Company (KO) | Coca-Cola Europacific Partners PLC (CCEP) |
|---|---|---|
| Market Risk | Moderate (Beta 0.39) | Moderate (Beta 0.36) |
| Debt level | High (Debt/Equity 1.84; Neutral debt-to-assets 45.5%) | Elevated (Debt/Equity 1.33; Neutral debt-to-assets 36.4%) |
| Regulatory Risk | Moderate (US regulations, global beverage standards) | Moderate (EU/UK regulations, supply chain oversight) |
| Operational Risk | Moderate (Global bottling network complexity) | Moderate (Regional bottling and distribution challenges) |
| Environmental Risk | Increasing pressure on sustainability and water usage | Similar environmental scrutiny, focus on packaging and emissions |
| Geopolitical Risk | Moderate (Global presence, currency fluctuations) | Moderate (Exposure to European and Asia-Pacific markets) |
The most impactful risks for both companies are their relatively high debt levels, which may constrain flexibility and increase financial vulnerability. Market and regulatory risks remain moderate but require vigilance due to evolving consumer preferences and tightening sustainability standards. Operational complexities in their widespread distribution networks also pose ongoing challenges.
Which Stock to Choose?
The Coca-Cola Company (KO) shows a favorable income evolution with steady revenue and net income growth over 2020-2024, supported by strong profitability metrics such as a 22.59% net margin and 42.77% ROE. Its debt level is moderate with a net debt to EBITDA of 2.21, while its overall rating is very favorable (B+).
Coca-Cola Europacific Partners PLC (CCEP) demonstrates robust income growth, particularly in net income and EPS over the period, despite a lower net margin of 6.94%. Profitability ratios like ROE at 16.7% are positive, though debt levels are relatively higher with net debt to EBITDA near 3. Its rating is also very favorable (B), reflecting solid financial health.
Investors prioritizing durable competitive advantages and consistent profitability might find KO more appealing given its very favorable moat status and strong income stability. Conversely, those seeking higher growth potential with improving profitability could see CCEP as an interesting case despite its higher leverage and lower margins.
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 Coca-Cola Europacific Partners PLC to enhance your investment decisions:
