Coca Cola vs Pepsi vs Monster

I plan on adding a soft drink company to my portfolio, because I don't feel like adding up on my positions, which are quite pricy, nor buying something like the QQQ or any growth fund which would increasingly expose me to tech.

The three choices are obviously Coca Cola, Pespsi and Monster.

Coca cola is the one trading at the lowest multiple, paying the highest dividend, and arguably the one with stronger brand recognition. I really like the fact that they are deleverging and consistently paying off their debt, however the growth has been lagging behind. Has less than half the revenues of Pepsi does (43bln vs 92 bln), but just over twice the net margins. I would say its the safest play.

Pepsi has done I think decent acquistions ( ex, Doctor Pepper ), and is growing slightly faster than Coke with a lower dividend. Very stable growth, a fair amount of debt (nothing too concerning).

Monster growth has been, well, Monstrous. However the PE is 41 (10 more than pepsi, 16 more than coke), and since they never paid dividend the balance-sheet looks incredible. They have more cash than all liabilities, and are already doing buybacks, which for fast growing company is quite nice,as it means they can already return capital to shareholders while expanding operations, without using debt. I am not saying it is undervalued (PE 41), but given the current multiples and its track record, it doesn't seem too bad. The brand doesn't have the same track record of the other two, but is well known and the managment seems to know how to keep it relevant and in touch with consumers preferences. I don't think its going away (stressed overworked people needs energy drinks haha) but the future might be more uncertain than with the other two.

What are your thoughts on these companies?

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