New product launches from productive collaborations, rebounding consumer demand, and rising investor attention to the consumer defensive industry should benefit PepsiCo (NASDAQ:PEP) and Monster Beverage (MNST). But which of these stocks is a better buy now? Read more to find out.PepsiCo, Inc. (PEP) in Harrison, N.Y., and Monster Beverage Corporation (NASDAQ:MNST) in Corona, Calif., are two prominent players in the non-alcoholic beverage industry. PEP operates food, beverage, and snack businesses worldwide. It markets its products through a network of direct-store-delivery, customer warehouse, distributor networks, as well as through e-commerce platforms and retailers. MNST develops, markets, sells, and distributes energy drink beverages and concentrates internationally. The products are sold primarily to bottlers and beverage distributors and directly to retail grocery and specialty chains, wholesalers, merchandisers, convenience chains, e-commerce retailers, and the military.
Easing travel restrictions have of late helped the non-alcoholic beverage industry to benefit from rebounding demand for healthy, refreshing, and ready-to-drink beverages from both fountain retailers and e-commerce platforms. Although inflationary pressures have brought the industry increasing production costs, companies in the sector have raised their product prices to offset their heightened costs. Furthermore, as participants in a consumer defensive industry, non-alcoholic beverage companies have been witnessing increasing investor attention amid current market volatility. Indeed, the non-alcoholic beverages market is expected to grow at an 8.2% CAGR to $1.73 trillion by 2028. So, both PEP and MNST are expected to benefit.
But, while MNST's stock has declined 7.5% in price year-to-date, PEP has surged 7.1%. PEP is also a clear winner with 12.3% gains versus MNST’s 5.2% returns in terms of their past year's performance. But which of these stocks is a better pick now? Let’s find out.