This Beverage Stock Is Way Cheaper Than Celsius

Vita Coco has rallied roughly 46% in 2025 and trades at a trailing P/E of about 47 versus Celsius’s 365, suggesting a markedly cheaper valuation; the company reported Q3 net sales up 37% to $182 million and struck a December partnership with Rush Soccer. Regulatory developments have also helped: U.S. tariff relief in November cut coconut-water import duties from ~23% to 6%, reducing input costs and insulating Vita Coco relative to can-reliant peers hit by a summer increase in aluminum and steel tariffs to 50%, aided further by its recyclable paper-carton packaging. Management is emphasizing sustainability — a Seedlings for Sustainability goal to plant 10 million seedlings by 2030 — which supports brand positioning, though Motley Fool’s Stock Advisor did not include Vita Coco in its top-10 buy list, indicating some selectivity among analysts despite the strong recent performance.

Analysis

Vita Coco (NASDAQ: COCO) has delivered a strong share-price performance, rallying about 46% in 2025 (as of Dec. 15) after four consecutive years of gains since its October 2021 IPO; the stock trades at a trailing P/E of ~47 versus Celsius (CELH) at 365, making Vita Coco roughly seven times cheaper on that metric. The company reported substantive top-line momentum in Q3 2025 with net sales up 37% to $182 million, signaling robust consumer demand for its coconut-based product mix.

Regulatory developments materially improved the cost outlook: a November White House decision cut coconut-water import tariffs from ~23% to 6%, directly lowering Vita Coco's average tariff burden and creating a near-term margin tailwind; concurrently, summer tariff increases on aluminum and steel to 50% disproportionately hurt can-reliant peers (PepsiCo, Coca-Cola), while Vita Coco’s recyclable paper-carton packaging leaves it less exposed.

Brand and ESG initiatives reinforce positioning: a December partnership with Rush Soccer and the Seedlings for Sustainability program (10 million seedlings/trees by 2030) support marketing and supply-chain resilience. However, Motley Fool’s Stock Advisor did not include Vita Coco in its top-10 picks, a reminder that despite strong growth and policy tailwinds investors should monitor execution, margin translation of tariff relief, and valuation after a substantial 2025 rally.

Key Decisions for Investors

• Consider a measured add to positions given 37% Q3 sales growth and the tariff-driven cost reduction, but size new exposure conservatively after a ~46% YTD run and maintain staggered entries to manage short-term volatility
• Monitor next-quarter guidance and gross-margin trends closely to confirm the tariff relief is translating to flow-through benefits; if net sales growth or margin expansion stalls, reassess the position promptly
• Implement risk controls (position limits or hedges) to protect against demand shocks or mean reversion, and compare Vita Coco directly with alternative beverage opportunities given that some analyst panels (e.g., Motley Fool Stock Advisor) excluded it from their top picks