The global consumer goods industry is thriving due to an increased rate of urbanization, growth in disposable incomes, and shifting consumer preferences. The global market is expected to grow at a CAGR of 4.5% by 2028.
Additionally, the food and beverage subsector is the largest segment in the consumer goods industry. The growing alcoholic beverage consumption per capita and consumer preferences for high-end goods are expected to drive market growth.
Furthermore, customers are choosing healthier drinks as a result of growing lifestyle disease prevalence, increased health consciousness, and rising disposable income. The global beverages market is estimated to grow at a CAGR of 4% by 2030.
Against this backdrop, let’s compare two consumer goods stocks to analyze which stock is a better buy: BARK, Inc. (BARK) and Zevia PBC (ZVIA).
The Case for BARK, Inc. Stock
With a $344.43 million market cap, BARK, Inc. (BARK) is a dog-centric company that provides dog products, services, and content. It operates in two segments, Direct to Consumer and Commerce.
BARK’s stock has gained 16.5% over the past three months to close the last trading session at $1.98.
BARK’s 1.46x trailing-12-month asset turnover ratio is 47.3% higher than the 0.99x industry average. Also, its 61.95% trailing-12-month gross profit margin is 64.7% higher than the 37.60% industry average.
BARK’s revenue for the third quarter, which ended on September 30, 2024, increased 4.4% year-over-year to $126.11 million. In addition, the company’s gross profit came in at $76.11 million. Its adjusted EBITDA stood at $3.50 million.
For the fourth quarter ending March 2025, BARK’s revenue is expected to increase 6.1% year-over-year to $128.84 million. Its EPS for the ongoing quarter is expected to be $0.01. Moreover, the company surpassed revenue estimates in three of the trailing four quarters, which is impressive.
BARK’s POWR Ratings reflect its promising outlook. The stock has an overall rating of B, which translates to a Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.
The stock has an A grade for Growth and a B for Quality. BARK is ranked #4 out of 38 stocks in the Specialty Retailers industry.
In addition to the POWR Ratings I’ve just highlighted, you can see BARK’s ratings for Momentum, Stability, Value, and Sentiment, here.
The Case for Zevia PBC Stock
Valued at $193.59 million by market cap, Zevia PBC (ZVIA) is a beverage company that develops, markets, sells, and distributes various carbonated beverages in the United States and Canada. It offers soda, energy drinks, organic tea, and kids’ drinks.
Shares of ZVIA have surged 42.9% over the past month but declined 6.5% intraday to close the last trading session at $3.
In terms of the trailing-12-month CAPEX/Sales, ZVIA’s 0.20% is 93.7% lower than the 3.13% industry average. However, its 44.27% trailing-12-month gross profit margin is 22.7% higher than the 36.08% industry average.
ZVIA’s net sales were reported at $36.40 million for the fiscal third quarter that ended September 30, 2024. However, the company’s net loss came in at $2.80 million and $0.04 per share.
For the fourth quarter ending December 2024, ZVIA’s revenue is expected to increase 3.5% year-over-year to $39.13 million. However, its loss per share for the ongoing quarter is expected to be $0.06.
ZVIA’s fundamentals are reflected in its POWR Ratings. The stock has an overall C rating, translating to Neutral in our proprietary rating system.
ZVIA has a C grade for Growth, Value, and Stability. It is ranked #14 out of 31 stocks in the B-rated Beverages industry.
Click here for the additional POWR Ratings for ZVIA (Momentum, Sentiment, and Quality).
BARK Inc. (BARK) vs. Zevia PBC (ZVIA): Which Consumer Goods Stock Is a Better Buy?
With retail growth, e-commerce platforms, competition, and rapidly changing demographics, consumer goods companies meet consumer demands, driving growth in the consumer goods industry.
Leading consumer goods companies BARK and ZVIA stand to capitalize on the optimistic industry outlook. However, BARK’s strong profitability might make it the better consumer goods stock pick.
Our research shows that the odds of success increase when one invests in stocks with an Overall Rating of Strong Buy or Buy. View all the top-rated stocks in the Specialty Retailers here and the Beverages industry here.
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BARK shares were trading at $1.98 per share on Thursday afternoon, down $0.00 (0.00%). Year-to-date, BARK has gained 145.81%, versus a 25.01% rise in the benchmark S&P 500 index during the same period.
About the Author: Nidhi Agarwal
Nidhi is passionate about the capital market and wealth management, which led her to pursue a career as an investment analyst. She holds a bachelor's degree in finance and marketing and is pursuing the CFA program. Her fundamental approach to analyzing stocks helps investors identify the best investment opportunities. More...
More Resources for the Stocks in this Article
Ticker | POWR Rating | Industry Rank | Rank in Industry |
BARK | Get Rating | Get Rating | Get Rating |
ZVIA | Get Rating | Get Rating | Get Rating |