Coca-Cola vs Quest Which Is More Promising?

Coca-Cola and Quest stocks are two vastly different investments in the beverage industry. Coca-Cola, a well-established company with a long history, is known for its wide range of soda products and global reach. On the other hand, Quest, a newer player in the market, specializes in health-conscious protein bars and shakes. Both companies have their own strengths and weaknesses, making them appealing options for investors with different risk tolerances and investment strategies.

Coca-Cola or Quest?

When comparing Coca-Cola and Quest, 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 Quest.

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 3.07%, while Quest has a dividend yield of 3.8%. 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, Quest reports a 5-year dividend growth of 58.49% year and a payout ratio of 0.00%.

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 26.14 and Quest's P/E ratio at 13.46. 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 10.26 while Quest's P/B ratio is 2.31.

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 Quest's is -0.19%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Coca-Cola's ROE at 39.75% and Quest's ROE at 17.36%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $63.11 for Coca-Cola and €5.65 for Quest. Over the past year, Coca-Cola's prices ranged from $57.47 to $73.53, with a yearly change of 27.95%. Quest's prices fluctuated between €4.60 and €6.25, with a yearly change of 35.87%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.