Monster Beverage Corp (MNST), The Coca-Cola Company (KO) and PepsiCo, Inc. (PEP): Will Energy Drink Sales Surpass Traditional Colas?

In the age-old test of which drink tastes better, there may be a new contestant in Monster Beverage Corp (NASDAQ:MNST). This company – through its subsidiaries – markets and sells, as well as develops and distributes beverages worldwide. Many of its drinks are marketed as carbonated energy supplements that have gone head-to-head with other similar drinks, such as 5-Hour Energy. The company was established in 1985 and is headquartered in California.

Making room for monster

Monster Beverage Corp (NASDAQ:MNST) currently holds almost a 40% market share in the energy drink arena – although this may soon change based on a recent lawsuit alleging a consumer’s death due to drinking too much of the company’s flagship beverage.

One of the most impressive features about this company is that it has no debt to speak of – a nearly impossible feat in today’s corporate environment. This gives the company a literal debt-to-equity ratio of zero – and this is a very favorable sign.

One of the ways that Monster has been keeping itself near the top of its market category is through the launch of new flavors – including “rehab” drinks. Although it remains to be seen whether or not this will catapult the company to new category heights, analysts do expect a gain of approximately $0.05 in its earnings per share for the first quarter of 2013.

As of the most recent quarter, Monster came in higher than the industry average for revenue growth – and the firm’s overall revenue increased by almost 15% over the year-ago period. This also helped Monster increase its earnings per share by more than 10%.

Is there another key player in the cola wars Now?

Monster could very well be the next big player in the cola wars – a test that has for years been played out between The Coca-Cola Company (NYSE:KO) and PepsiCo, Inc. (NYSE:PEP). Although there’s a new game in town, the big cola giants aren’t exactly backing down.

In fact, The Coca-Cola Company (NYSE:KO), with its almost a $200 billion market cap and approximately 4.5 billion shares, has been working to keep both consumers and shareholders happy – and for the most part, it has succeeded. Since the recession, the stock price has come back to provide a total return of 33% to The Coca-Cola Company (NYSE:KO)’s investors.

And, while the company’s more sugary drinks aren’t as much in demand today by more health-conscious consumers, The Coca-Cola Company (NYSE:KO) has moved into a number of new  and healthier product lines, such as bottled water.