Original title: Beyond Meat Vs Coca Cola That's MoreIt's worth buying? Source: Financial Industry Network
Financial Industry Network reported on March 2 that for investors who want to invest in food reserves in 2021, Beyond Meat and Coca Cola both have leading positions in their respective fields, but they provide investors with different products, different models, and different prospects.
Both companies are struggling with the pandemic, but what we need to talk about is the future. These stocks can be controlled by consumers at will, which one is the better choice?
They are all leading brands, but in different directions
Beyond Meat was a hot IPO in 2019, and unless you factor in food technology calculations, it's definitely a non-technical IPO. It produces alternative meatloaf and other meatless products. With the popularity of the product, revenue soared. Sales in the first quarter of 2020 increased by three digits, but sales in the third quarter ended September 26 last year increased 2.7% due to falling demand due to work stoppages. This is still an increase, but it does change the view on the company's growth prospects. The main resistance was food service, with the US market falling 11% and the international market falling 65%, but even though retail sales increased by only 39%.
Prior to the pandemic, Coca Cola performed well, increasing sales by 16% in the fourth quarter of 2019 and 9% in full-year sales. In other words, even though Coca Cola is huge, it can still grow. Its share of the cold drinks market in developing countries is only 10%, while the market share of other beverages is less than 1%, so there is plenty of room for growth.
However, it is also vulnerable to changes in the global economy. Sales in the third quarter fell 9%, which is actually a good improvement compared to the 28.5% decline in the second quarter. The company usually gets about half of its sales from overseas, and Beyond Meat has similar issues. Despite a decline in overall sales, Coca Cola still earns $0.4 per share.
Coca Cola remains the leading beverage company, with third-quarter sales of $8.7 billion, and has made rapid restructuring to better manage in the current environment.
Stand out in a crowded space
Beyond Meat is one of the best-known companies in its field, but faces intense competition from similar companies. CEO Ethan Brown said that the company's products are different from competitor Impossible Foods products because Beyond Meat does not use genetically modified ingredients, but in addition to customers who think plant-based pies are plant-based pies, there are many other manufacturers of similar products, such as Kroger's Simple Truth brand, Tyson Foods, and The Tattooed Chef.
Beyond Meat will continue to launch new products and launch two new burger recipes in 2021. Of course, it has some influence and can make it stand out in the plant-based meatloaf market, while plant-based foods are growing. According to the latest data from the Plant-based Food Association, plant-based meat sales increased by more than 18% in 2019, while actual meat sales were 2.7%.
Beyond Meat began recording profits in 2019, but has announced losses in the third quarter of 2020. As for the fourth quarter, the company is still struggling with losses in the food service business and a slowdown in inventory that began in the early stages of the pandemic. Investors will wait and see if they can return to profitability sometime in 2021.
Coca Cola also faces a lot of competition, but its brand has dominated over the past few decades, so much so that its name gives it a unique advantage. However, the biggest competitor, Pepsi, performed much better than Coca Cola during the pandemic due to the fact that the beverage and breakfast business performed much better than Coca Cola, and has surpassed Coca Cola's growth rate for some time.
Coca Cola still pays dividends, with a dividend yield of about 3.3%, and has increased dividends every year for the past 58 years, so dividends are probably its biggest attraction. Despite sales setbacks, management has ensured that dividends will remain high during the pandemic.
Investor Priorities
I'm not sure which of these stocks is just a good choice right now. I'm cautious about the future of Beyond Meat. Coca Cola is still struggling with social restrictions and competition during the pandemic, yet it still has something to offer dividend investors and is already planning to make a comeback.