Choosing Between Coca-Cola and Nike for Your Portfolio in 2024
Investment Analysis: Coca-Cola vs. Nike in 2024
Both Coca-Cola (NYSE: KO) and Nike (NYSE: NKE) underperformed the market last year, but could deliver better returns in 2024. They are among the biggest marketing giants on the planet, with extremely valuable brands. Coca-Cola is showing stronger growth with healthy organic sales, while Nike faces weakening sales trends.
Growth goes to Coke
Coke: Organic sales were up 12% in 2023, compared to Nike's 1% decline, indicating stronger growth potential for Coca-Cola. Momentum likely to continue in 2024.
Nike: Warned investors about even weaker sales trends ahead, projecting a challenging outlook for the next six months.
Margin profile
Coke: Boasts sparkling earnings outlook with pricing power and rising case volume, setting the stage for profitable quarters.
Nike: Endured declining earnings with tough industry conditions expected to persist, focusing on cost-cutting strategies for margin improvement.
Price and cash returns
Coke: Offers a 3%-plus yield, with a strong track record of raising dividends. Trading at a premium compared to Nike, but remains favorable for stable growth.
Nike: Struggles with lower cash returns and challenges in retail, indicating a less attractive position for investors seeking cash flow stability.
Investors should carefully assess the strengths and weaknesses of Coca-Cola and Nike to make informed investment decisions in 2024.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.