Investing $10,000 in Monster Beverage Stock 10 Years Ago Paid Off More Than Investing the Same Amount in Coca-Cola. Here's the Better Buy for the Next Decade.
Key Points
With total returns of 258.9% versus 179.3% for Coca-Cola, Monster Beverage was the stronger-performing of these two soft drink stocks.
More recently, though, Coca-Cola has become the outperformer, with its recent sales growth resurgence driving 27% gains so far in 2026, versus just 14.8% for Monster.
Only time will tell which of these two becomes the outperformer of the next decade, but there's nothing wrong with holding long-term positions in both names.
Over the past decade, an investment in Coca-Cola (NYSE: KO), with dividends reinvested, has generated total returns of 179.3%. That might sound impressive on the surface, but consider how an investment in Monster Beverage (NASDAQ: MNST) made a decade ago generated even greater gains, with total returns of 258.9%.
In other words, while $10,000 invested in Coca-Cola in 2016 is now worth $27,930, $10,000 invested in Monster is now worth $35,890, or 28.5% more than the Coca-Cola position.
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That said, while Monster generated stronger returns from 2016 to 2026 than Coca-Cola, that may not be the case over the next decade.
Image source: Getty Images.
Why Monster beat Coke over the past 10 years
It's not a mystery why shares of Monster, famed for its energy drink brand, outperformed those of the larger global beverage company. Monster has experienced far greater growth during this time frame. From 2016 to 2025, its full-year revenue increased over threefold, from $3.05 billion to around $9.2 billion. That's annualized revenue growth of around 13%.
Conversely, Coca-Cola's revenue grew just 14.5% during this time, from around $41.7 billion to $47.9 billion, representing annualized growth of around 1.5%.
For Monster versus Coca-Cola, this growth outperformance extended to earnings per share (EPS) as well. From 2016 to 2025, Monster's EPS, on a split-adjusted basis, increased from $0.30 to $1.08, once again more than tripling. Coca-Cola's EPS more-than-doubled from 2016 to 2025, rising from $1.49 to $3.04.
Hence, even with factors like its quarterly cash dividend providing a baseline of returns, Coca-Cola's lower growth, coupled with the fact that both beverage stocks didn't experience much multiple expansion, helps explain Monster's extended wave of share price outperformance.
What could change in the decade ahead?
While Monster Beverage has been the clear winner over the past decade, since the start of 2026, its shares have underperformed relative to Coca-Cola. Shares of Coca-Cola generated total returns of over 27% year-to-date, versus 14.8% for Monster Beverage. Thanks to a sales growth resurgence, which in turn drove EPS growth near 10%, Coke shares have surged, driven by both improved results and a market rerating.
As for Monster Beverage, sales growth stayed robust. During the second quarter 2026, for instance, Monster reported 20.2% net sales growth and a 19% jump in EPS. However, worries about slowing growth have persisted over the year. It likely doesn't help, either, that Monster trades at a rich 34 times forward earnings.
Even a modest earnings slowdown could lead to a multiple contraction. If that happens, Monster's shares may decline in value, even as earnings continue to grow. Coca-Cola isn't exactly cheap, either, at 25 times forward earnings, but its current valuation isn't that far off its historic valuation. Depending how long the company's recent growth streak continues, shares could continue to perform well.
Add in its 2.4% dividend, and it's easy to picture a scenario where Coca-Cola outperforms Monster. That said, it's perfectly fine to own both stocks. Until results say otherwise, Monster remains a solid long-term growth story. Coca-Cola, one of the Dividend Kings (companies that have raised their annual dividend payout for at least 50 consecutive years) and benefiting from improved growth, could continue to offer both a solid dividend and enhanced price appreciation potential.
Thomas Niel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Monster Beverage. The Motley Fool has a disclosure policy.