Coca-Cola is performing strongly, with organic sales up 6% in the first quarter of 2025. Despite a tough market, investors are drawn to Coca-Cola’s stable of iconic brands and global distribution strength. However, its valuation is high, with price-to-sales, price-to-earnings, and price-to-book ratios above their five-year averages. On the other hand, PepsiCo’s organic sales rose only 1.2% in the first quarter, leading to a 30% drop in shares since mid-2023. While PepsiCo may seem like a weaker investment now, history suggests it may eventually outperform Coca-Cola.

Investors are paying a premium for Coca-Cola, which limits potential upside. Consider PepsiCo as a more attractive long-term dividend stock option, despite its current struggles. The Motley Fool Stock Advisor team has identified 10 stocks with potential for significant returns, and Coca-Cola did not make the cut. Don’t miss out on the next top stock picks by joining Stock Advisor.

Read more at Nasdaq: Coca-Cola Is a Great Company, But I Think This Stock Is a Better Investment