Investors have some differing expectations around Coca-Cola (KO) and Monster Beverage (MNST 0.41%) right now. Coke's shares have sat out the stock market rally so far in 2023, while its smaller peer is posting solid gains through mid-June.

Both companies manage to generate strong sales growth even as they raise prices. And profitability is jumping due to the combination of those higher prices and slowing production cost increases.

But which stock is the more attractive buy right now? Let's take a closer look.

Both are boosting sales

Monster Beverage has a slight edge over its larger rival in the growth department. Sales in the first quarter rose 15% year over year after accounting for currency-exchange shifts, compared to Coca-Cola's 12% organic revenue spike. Both figures reflect market share gains in the expanding on-the-go beverage industry, yet the energy and nontraditional beverage niches are standout performers.

Coke has a large presence in these areas, which includes alcoholic mixed drinks. But most of its growth comes from its core soda brands like Fanta, Sprite, and Coca-Cola.

Successful innovations in these franchises lately have included reduced-sugar options, smaller sizes, and many new flavors. "We're constantly transforming our portfolio," executives said in late April in a press release.

Profits and returns

Neither company has struggled after passing along rising costs to its customers. Monster Beverage said in early May that price hikes helped push gross profit margin to 53% of sales compared to 52% a year ago.

Yet Coke is the clear winner on this point. Its gross profit margin is an industry-thumping 61%. The company converts 31% of sales into operating profit, too, compared to Monster Beverage's 29% rate.

Shareholders also get a dividend bonus from owning Coca-Cola. The company has steadily raised its annual payout for decades, and the dividend yield currently sits at an enticing 3%. Monster Beverage isn't a steady dividend payer, as management is currently focused on growth initiatives like international expansion.

The better buy

The current selling environment suggests both companies can deliver strong returns for investors. The price increases that Coke and Monster Beverage have rolled out in recent quarters, combined with slowing inflation today, point to the potential for more record profitability.

Consumers are clearly responding to innovative product releases, too, both in core soda brands and other areas like sports drinks, energy drinks, teas, and waters. Wall Street pros are forecasting solid growth in both businesses in 2023 even following sales spikes last year.

Coke stock is available at a discount, though. Shares are trading for about 6 times revenue today compared to Monster Beverage's price-to-sales (P/S) ratio of over 9. Sure, Monster Beverage deserves a bit of a premium due to its faster growth profile. But Coca-Cola delivers nearly the same benefits here, plus higher margins and a steady dividend.

Given those valuable advantages, most investors will prefer to buy Coke's stock right now following its weaker performance so far in 2023.