Sara Appino, The Motley Fool
6 min read
Should I buy the high-octane growth of Celsius (NASDAQ:CELH) or the steady, defensive reliability of Colgate-Palmolive (NYSE:CL)? Both companies command strong brand loyalty but serve very different investor goals.
Celsius specializes in functional energy drinks that appeal to health-conscious consumers, while Colgate-Palmolive is a global giant in household essentials like toothpaste and pet food. While one seeks to disrupt the beverage aisle, the other relies on decades of market dominance. This comparison examines whether growth or stability is the better play for 2027.
The case for Celsius
Celsius offers functional beverages designed for active lifestyles, marketing its products as healthier alternatives to traditional energy drinks. In its latest annual report, sales to Pepsi constituted nearly 43.2% of total net revenue, and customer concentration like this adds a layer of risk to the business. The company remains a high-growth standout among beverage stocks as it scales the Alani Nu and Rockstar brands.
In the 12 months ended Sept. 30, 2026, revenue reached nearly $3.2 billion. This represents revenue growth of approximately 49.1% compared to the prior period, driven by expanded retail shelf space and consumer demand. Net income for the same timeframe was close to $235 million, which represents a significant increase as the company leverages its distribution agreement with Pepsi.
As of its December 2025 balance sheet, the debt-to-equity ratio is roughly 0.2x. This ratio measures total debt against shareholder equity, where a lower number indicates a conservative capital structure with little reliance on debt. The current ratio, which compares short-term assets to liabilities, is approximately 1.7x. In the fiscal year ended Dec. 31, 2025, free cash flow reached nearly $323.4 million.
The case for Colgate-Palmolive
Colgate-Palmolive is a titan in the consumer staples space, operating across oral care, personal hygiene, and pet nutrition segments. In its latest annual report, Walmart (NASDAQ:WMT) and its affiliates accounted for approximately 11% of net sales. Customer concentration like this adds a layer of risk to the business, though the company maintains a massive global footprint under brands like Hill’s Science Diet.
In the 12 months ended Sept. 30, 2026, revenue reached close to $21.3 billion. This reflects revenue growth of roughly 5.9% as the company navigated varying economic conditions across its international markets. Net income for the period was approximately $2.1 billion, and the company maintained a net margin of nearly 9.6% while continuing to invest in its productivity programs.
