The Coca-Cola Company (KO), Monster Beverage Corp (MNST): Should You Get Out Now?

It’s undeniable that the consumer is finally paying attention to the alarming obesity rates in the United States. And considering that Monster energy drinks have more dubious health consequences than soda, investors would be wise to monitor the company’s situation closely going forward. Add in the fact that consumer tastes can change rapidly, and it seems like a tenuous environment for Monster Beverage Corp (NASDAQ:MNST).

Investors shouldn’t immediately jump to the conclusion that energy drinks are going to disappear. But for a company that at one point produced 30% quarterly sales growth year over year like clockwork, to all of a sudden post pedestrian revenue growth and actually report a profit decline, the warning signs can’t be ignored.

Coca-Cola and Pepsi offer much more established, global brands with long histories of reliable cash flows. In addition, both stocks offer solid 2.7% dividend yields at recent prices. In short, the risk level of Coca-Cola and Pepsi isn’t anywhere near Monster Beverage Corp (NASDAQ:MNST)’s, and as a result, investors interested in the beverage industry should prefer the twin industry titans.

The article Troubling Results From Monster Beverage Underscore a Broader Industry Problem originally appeared on Fool.com and is written by Robert Ciura.

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