Coca-Cola vs Heineken Which Outperforms?

Coca-Cola and Heineken are two beverage giants with significant market presence and global recognition. Both companies have been longstanding favorites among investors due to their strong brand reputation and consistent growth in revenue and profit. However, their stocks have shown varied performance over the years, with fluctuations in market demand, competition, and external factors affecting their share prices. This comparison between Coca-Cola and Heineken stocks brings to light the strengths and weaknesses of these industry leaders in the ever-evolving beverage market.

Coca-Cola or Heineken?

When comparing Coca-Cola and Heineken, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Coca-Cola and Heineken.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Coca-Cola has a dividend yield of 3.08%, while Heineken has a dividend yield of 3.16%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Coca-Cola reports a 5-year dividend growth of 3.36% year and a payout ratio of 78.28%. On the other hand, Heineken reports a 5-year dividend growth of 2.58% year and a payout ratio of 210.99%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Coca-Cola P/E ratio at 26.05 and Heineken's P/E ratio at 15.51. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Coca-Cola P/B ratio is 10.23 while Heineken's P/B ratio is 0.88.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Coca-Cola has seen a 5-year revenue growth of 0.31%, while Heineken's is 1.73%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Coca-Cola's ROE at 39.75% and Heineken's ROE at 5.61%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $61.79 for Coca-Cola and $31.01 for Heineken. Over the past year, Coca-Cola's prices ranged from $57.47 to $73.53, with a yearly change of 27.95%. Heineken's prices fluctuated between $30.48 and $43.56, with a yearly change of 42.92%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.