Dutch Bros vs. On: Which Stock Is a Better Buy?

Can high-growth consumer brands maintain their momentum in a shifting economy? Today we compare Dutch Bros (NYSE:BROS) and On (NYSE:ONON) to see which stock offers the best path for long-term investors.

Dutch Bros specializes in high-speed, drive-thru beverage service, focusing on speed and a unique culture. Swiss-based On has disrupted the athletic shoe market with its proprietary cushioning technology. Both companies are scaling aggressively, but they operate in distinct corners of the consumer market with different capital needs and margin profiles.

The case for Dutch Bros

Dutch Bros operates a rapidly growing network of drive-thru beverage shops across multiple states. The company specializes in customizable drinks and partners with suppliers like Portland Bottling and Lieb Foods to produce its proprietary Rebel energy drink. By focusing on high-velocity service and a unique culture, it has carved out a significant niche among retail stocks.

In FY 2025, revenue reached nearly $1.6 billion, which was a 27.9% increase from the prior year. Net income climbed to approximately $79.8 million during the same period, showing improvement from the roughly $35.3 million reported in the previous fiscal year. The company continues to see strong demand for its cold beverage offerings and energy drinks as it expands its shop count.

The case for On

On is a Swiss-based brand that has become a major player in the global performance apparel industry. In its latest annual report, filed for the period ending December 31, 2025, the company reported having 67 retail locations across the Americas, EMEA, and Asia-Pacific. It sells products globally across more than 90 countries.

During FY 2025, revenue reached nearly $3.7 billion, representing an increase of roughly 30% year over year. Net income for the period was close to $248.1 million, resulting in a net margin of approximately 6.8%. Net margin shows how much of each dollar in sales is kept as profit after all expenses are subtracted, and the company has grown sales from roughly $2.2 billion just two years prior.

Risk profile comparison

Dutch Bros faces significant risks including intense competition from other coffee chains and quick-service restaurants. The company is heavily reliant on its Rebel energy drink line, which accounted for more than 20% of systemwide sales in 2025. It also deals with price volatility for key ingredients like coffee beans and dairy products, as well as potential delays in its aggressive shop expansion strategy.

On competes in a crowded market against massive brands like Nike and Adidas. Because it operates globally, the company is vulnerable to shifts in international trade policies and supply chain disruptions. Furthermore, staying relevant in the premium footwear market requires constant innovation and effective marketing to maintain brand prestige.

Valuation comparison

On appears to be the more attractively priced option because it trades at a lower forward price-to-earnings (P/E) ratio, which compares the stock price to future earnings estimates. The price-to-sales (P/S) ratio, which measures market cap against sales over the past twelve months, also shows a difference between the two companies.

Which stock should you buy?

Between these two companies, I would lean more toward owning Dutch Bros. It has its challenges, which range from increased ingredient prices to intense competition to execution risk in expansion. Still, I like Dutch Bros more because it can be part of everyday routines, while purchases at On may only happen once or twice a year for some customers. Also, in tighter economic times, people may trade down in apparel, but for something like a coffee, that's often still kept in a weekly budget, as it's viewed as an affordable luxury.

I also like the overall expansion opportunities for Dutch Bros, as it is in fewer than 30 states. It also has a long-term goal of reaching over 7,000 drive-thru locations.

Over the next year, analysts also seem to have a more favorable outlook on Dutch Bros. According to CNN-tracked data, the median one-year price target among the 28 analysts covering the stock is $54, representing a gain of nearly 60% as of this writing. In comparison, among the 33 analysts who cover On, the median one-year price target is $43.40, representing a 16.1% gain. Between that short-term outlook and the longer-term opportunities with more location expansion, Dutch Bros wins this battle for me.

Jack Delaney has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Dutch Bros, Nike, and On Holding. The Motley Fool has a disclosure policy.