PepsiCo or Coca-Cola: Best Stock for 2025?

As 2025 begins, investors might find PepsiCo and Coca-Cola attractive due to their recent underperformance, with both trading 14% below their 52-week highs. PepsiCo’s valuation is more appealing, with its price-to-sales and price-to-earnings ratios significantly below historical averages, while Coca-Cola’s are closer to average. PepsiCo also offers a higher dividend yield of 3.5%, near its all-time high, compared to Coca-Cola’s 3.1%. Coca-Cola has seen faster revenue and earnings growth recently, but PepsiCo’s diverse portfolio, which includes snacks and packaged foods, adds resilience. For those prioritizing value, income, or diversification, PepsiCo appears to be the better choice, though both are strong long-term investments.