Up 35%, How Long Can Coca-Cola Continue Crushing the S&P 500?

• Coca-Cola stock up 35% in 2026, outpacing the S&P 500's 14% gain • PepsiCo's revenue growth (6%) now nearly matches Coca-Cola's (7%) • PepsiCo trades cheaper (17x earnings) with a higher 4.2% dividend yield than KO Coca-Cola (NYSE: KO) stock has returned 35% in 2026, well above the S&P 500's 14%, marking its best year since 1996. But rival PepsiCo may limit further gains. Despite a roughly -3% total return this year, PepsiCo looks like the better value. After years of stagnant sales, PepsiCo's revenue growth improved in fiscal 2025 following price cuts and healthier product reformulations, reaching 6% growth last quarter versus Coca-Cola's 7%. That narrow gap doesn't justify Coca-Cola's valuation premium: KO trades at 29 times earnings versus PepsiCo's 17. PepsiCo also offers a 4.2% dividend yield compared to Coca-Cola's 2.2%, though both are Dividend Kings with 50+ years of increases (Coca-Cola 64 years, PepsiCo 54). Coca-Cola still owns over 200 beverage brands and is expected to grow revenue 4% in 2026, likely enough to retain income-focused shareholders. But PepsiCo's improving fundamentals, lower P/E, and higher yield could make it harder for Coca-Cola to attract new buyers.