Monster Beverage vs. On Holding: Which Is the Better Growth Stock?

Choosing between high-growth sportswear and a steady beverage giant requires balancing risk and reward. Should you add Monster Beverage (NASDAQ:MNST) or On Holding (NYSE:ONON) to your portfolio?

Monster dominates the energy drink aisle with its massive distribution network and high profitability. On Holding is disrupting the footwear industry with premium technology and rapid global expansion. We compare these two diverse consumer giants to see which could fit your investment style best.

The case for Monster Beverage

According to its latest annual report, Monster Beverage is a leader among beverage stocks, developing energy drinks across the world. It primarily reaches consumers through a Coca-Cola (NYSE:KO) distribution system, and customer concentration like this adds a layer of risk to the business. The company also sells products through major retail channels like Walmart (NASDAQ:WMT) and Amazon (NASDAQ:AMZN), ensuring its drinks are available across all major shopping platforms.

In FY 2025, revenue reached nearly $8.3 billion, representing growth of approximately 10.7% compared to the previous year. This growth was accompanied by net income of close to $1.9 billion, resulting in a healthy net margin of roughly 23%.

The case for On Holding AG

Switzerland-based On Holding is a premium sportswear company that has carved out a significant niche in the performance footwear market. Its products, known for their distinctive cushioning technology, cater to runners and athletes who prioritize both style and performance. The company distributes its footwear and apparel through a balanced mix of wholesale partners and a rapidly growing direct-to-consumer channel.

In FY 2025, revenue reached approximately $3.6 billion, which represents a robust 30% increase over the prior year. Despite this rapid top-line expansion, the company reported a net income of roughly $246 million. The company has been tapping into aggressive reinvestment in marketing and expanding its physical store footprint, which can weigh on its profitability and margins.

Risk profile comparison

Monster Beverage faces significant risks related to its revenue concentration, as it relies heavily on the distribution network provided by its partners. Competition in the energy drink space remains intense, with pressure coming from established rivals like Red Bull and PepsiCo (NASDAQ:PEP). Furthermore, evolving regulations regarding caffeine content and potential excise taxes on sugary drinks pose a threat to future sales growth.

On Holding operates in the highly fickle world of athletic fashion, where brand cachet can shift quickly and consumer tastes are difficult to predict. It competes with massive global brands that have significantly larger marketing budgets and more established supply chains. Additionally, as a Swiss company with significant international sales, it is subject to currency fluctuations that can impact reported earnings when translated.

Valuation comparison

On Holding looks cheaper, as its forward price-to-earnings (P/E) and price-to-sales (P/S) ratio are relatively low.

Which stock would I buy?

While in different industries, this represents an interesting battle between two growth stocks. That said, I would rather own Monster Beverage as a long-term investment. Both operate in competitive spaces, but fashion is a much more difficult industry to stay ahead of, as consumer tastes are constantly changing. For Monster, while it also needs to innovate, it's much easier to keep its current customer base happy and build a loyal following. Also, the beverage maker benefits from the ability to sell its products daily. In contrast, an individual customer may purchase footwear and apparel from On Holding only once or twice per year.

We'll get a look at some fresh data in Monster's upcoming earnings report for the third quarter of 2026, but in the second quarter, it showed solid increases in sales and net income; sales climbed 20.2% from the prior-year period to $2.5 billion, and net income increased 19.6% to $584.5 million. It's also quickly expanding its international presence, creating new revenue opportunities. The dollar amount of sales increased by 34.6% in the second quarter of 2026, accounting for 46% of the company's total sales. And despite all the market turbulence in 2026, the Monster stock price is up 17.8% compared to the S&P 500's 12.9% return over the same period. In comparison, On Holding's shares are down 30.5%. Monster is proving to be the better investment in 2026, and I foresee that continuing into 2027.

Jack Delaney has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Monster Beverage, On Holding, and Walmart. The Motley Fool has a disclosure policy.