General Motors vs Coca-Cola: Which is the Better Investment?

General Motors and Coca-Cola are set to report Q2 earnings on July 22. GM's Q2 sales are expected to dip 5% to $45.34 billion, with earnings at $2.45 per share, a 20% decrease from last year. Coca-Cola's Q2 sales are expected to be up 2% to $12.59 billion, with earnings at $0.83 a share. GM's valuation is 5.7X forward earnings, while Coca-Cola's is 23.8X. Coca-Cola offers a higher dividend yield of 2.89% compared to GM's 1.13%.

General Motors (GM) and The Coca-Cola Company (KO) are set to release their second-quarter 2025 earnings reports on July 22, with analysts providing insight into their expected performance.

For GM, analysts predict quarterly earnings of $2.45 per share, reflecting a 19.9% decline from the same period last year. Revenue is forecasted to be $45.34 billion, a 5.5% decrease year-over-year [1]. The company’s stock has experienced a 10.6% increase in the past month, outpacing the Zacks S&P 500 composite’s 4.2% move [1]. GM’s valuation stands at 5.7X forward earnings, with a dividend yield of 1.13% [1].

On the other hand, Coca-Cola is expected to report year-over-year top-line growth, with revenues forecasted at $12.6 billion, a 1.9% increase from the year-ago quarter. Earnings are projected to be $0.83 per share, indicating a 1.2% decline from the prior-year quarter’s reported figure [2]. The stock has outperformed its competitors, with a year-to-date growth of 13.4%, compared to the broader Consumer Staples sector’s 4.6% growth [2]. Coca-Cola’s valuation is 23.8X forward earnings, with a dividend yield of 2.89% [2].

Both companies have shown resilience despite facing various challenges. GM’s earnings estimates have been adjusted upward by 1% over the past 30 days, reflecting a reassessment of initial projections [1]. Coca-Cola’s earnings are expected to reflect gains from innovations and increased digital investments, with e-commerce growth rates doubling in many countries [2].

Investors will be closely watching these earnings reports for insights into each company’s performance and future prospects. The reports will also provide valuable data for analysts to update their models and make informed investment decisions.

References:
[1] https://www.nasdaq.com/articles/insights-general-motors-gm-q2-wall-street-projections-key-metrics
[2] https://finance.yahoo.com/news/coca-colas-q2-earnings-deck-124000083.html