This Beverage Stock Is Way Cheaper Than Celsius

An underrated beverage company, Vita Coco (NASDAQ: COCO), has been on a tear since it went public in October 2021. After getting through a volatile first year on the market, the stock has managed gains for four consecutive years, climbing 46% in 2025 alone (as of Dec. 15). Compared to another upstart beverage company, Celsius (NASDAQ: CELH), it appears to be doing even better.

Celsius' stock price has far outpaced its earnings growth, resulting in a trailing price-to-earnings (P/E) ratio of 365. Compare that to Vita Coco's much cheaper trailing P/E of 47.

Vita Coco produces multiple coconut-based products, including coconut milk, caffeinated drinks, alcoholic drinks, and sweet "treats" beverages. The brand prioritizes health and sustainability, and its branding efforts related to sustainability gave it an advantage against competitors in 2025.

Image source: Getty Images.

Vita Coco receives tariff relief

In November, the company got another boost when the White House announced tariff relief for certain agricultural products, which included coconut water beverages. This dropped Vita Coco's average tariff costs relating to U.S. imports from 23% to 6%.

Additionally, earlier in the summer of 2025, the administration raised tariffs on imports of aluminum and steel from 25% to 50% to encourage increased recycling. While beverage companies such as PepsiCo and Coca-Cola have been significantly impacted by those tariffs due to their reliance on aluminum cans, Vita Coco is less affected because its primary products are packaged in recyclable paper cartons.

The company remains committed to upholding its principles for success, and so far, it's been consistently working. In Vita Coco's Q3 2025 earnings report, net sales increased 37% to $182 million for the quarter. In December, it secured a partnership deal with Rush Soccer, the largest global youth soccer organization, to be its official hydration partner.

The coconut water brand also has its Seedlings for Sustainability program, aiming to plant 10 million coconut seedlings and trees worldwide by 2030, which would allow coconut farmers to operate 4 times more efficiently. With Vita Coco stock still only four years old, it appears to be a great long-term investment.

Adé Hennis has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Celsius. The Motley Fool has a disclosure policy.