Which Beverage Stock is a Better Buy? By StockNews

© Reuters. Oatly vs. Pepsi: Which Beverage Stock is a Better Buy?

As summer kicks into full swing, the rising demand for refreshing and healthy beverages should drive the sales of companies in the non-alcoholic beverages business. Based on the growing demand for beverages amid the resumption of outdoor activities, PepsiCo (NASDAQ:) and Oatly (OTLY) are likely to benefit. But let’s find out which of these stocks is a better buy now.While PepsiCo, Inc. (PEP), based in Harrison, N.Y., is an established player in the non-alcoholic beverages industry. Oatly Group AB (OTLY) is a new industry participant. 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. OTLY is a Sweden-based company that provides a range of plant-based dairy products made from oats to its customers worldwide.

The return of U.S. consumers to restaurants and tourist places amid the reopening of the economy should drive the demand for fresh and healthy beverages this summer. And because consumer tastes have been shifting towards health and wellness products since the pandemic, companies are striving to develop new products. The non-alcoholic beverages market is expected to grow at an 8.2% CAGR to $1.73 trillion by 2028. Therefore, we think both PEP and OTLY will benefit from the industry tailwinds.

In terms of their past three months’ performance, PEP is a clear winner with 4.5% gains versus OTLY’s negative returns. But which of these stocks is a better pick now? Let’s find out.

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