STZ vs KO

For growth investors, Constellation Brands, Inc.

(STZ) is the stronger pick with 2. 5% revenue growth year-over-year, versus 1. 9% for The Coca-Cola Company (KO). The Coca-Cola Company (KO) offers the better valuation at 25. 8x trailing P/E (24. 1x forward), making it the more compelling value choice. Analysts rate Constellation Brands, Inc. (STZ) a "Buy" — based on 46 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On forward P/E, Constellation Brands, Inc.

is actually cheaper at 12. 7x — notably different from the trailing picture, reflecting expected earnings growth.

Over the past 5 years, The Coca-Cola Company (KO) delivered a total return of +61.

1%, compared to -30. 1% for Constellation Brands, Inc. (STZ). Over 10 years, the gap is even starker: KO returned +111. 2% versus STZ's +12. 6%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), The Coca-Cola Company (KO) is the lower-risk stock at -0.

09β versus Constellation Brands, Inc. 's 0. 26β — meaning STZ is approximately -397% more volatile than KO relative to the S&P 500. On balance sheet safety, The Coca-Cola Company (KO) carries a lower debt/equity ratio of 133% versus 170% for Constellation Brands, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Constellation Brands, Inc.

(STZ) is pulling ahead at 2. 5% versus 1. 9% for The Coca-Cola Company (KO). On earnings-per-share growth, the picture is similar: The Coca-Cola Company grew EPS 23. 6% year-over-year, compared to -104. 8% for Constellation Brands, Inc.. Over a 3-year CAGR, STZ leads at 5. 0% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

The Coca-Cola Company (KO) is the more profitable company, earning 27.

3% net margin versus -0. 8% for Constellation Brands, Inc. — meaning it keeps 27. 3% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: STZ leads at 35. 5% versus 28. 7% for KO. At the gross margin level — before operating expenses — KO leads at 61. 6%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

On forward earnings alone, Constellation Brands, Inc.

(STZ) trades at 12. 7x forward P/E versus 24. 1x for The Coca-Cola Company — 11. 4x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for STZ: 16. 9% to $175. 70.

All stocks in this comparison pay dividends.

Constellation Brands, Inc. (STZ) offers the highest yield at 2. 7%, versus 2. 6% for The Coca-Cola Company (KO).

For long-horizon retirement investors, The Coca-Cola Company (KO) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β -0.

09), 2. 6% yield, +111. 2% 10Y return). Both have compounded well over 10 years (KO: +111. 2%, STZ: +12. 6%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Consumer Defensive sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.