Late 2020 Nielsen data showed that energy drink consumption rose 10.6% on a year over year basis — suggesting that as the COVID pandemic rolled through daily life, the public was finding a need for caffeine, notes Joe Duarte, technical expert and editor of In the Money Options.

As a result, it makes sense to compare two of the major publicly traded players in the caffeine industry and see what their prospects might be in a rapidly changing world.

First, Starbucks (SBUX) — which I own as of this writing — and I have featured with some frequency, continues to attract money flows, which is why its stock was recently near its 52-week high.

Moreover, management’s late year announcement showed a bullish multi-year guidance while also showcasing  a steady improving in current sales and short-term outlook had a positive effect on the  shares.

However, there is an interesting dynamic emerging as analysts are questioning whether energy drinks will be taking market share from traditional coffee. And that’s where Monster (MNST), which I also own as of this writing, comes into play.

MNST  reported an 11.1% gain in currency adjusted year over year sales in its last 2020 quarterly report, but essentially flat gross profits, which was used as an excuse to sell the shares post earnings report.

Yet, as investors read through the earnings report, they learned that MNST’s sales are steadily rising, with its Reign brand growing at a nearly 19% clip. Moreover, sales of its coffee shot Java Monster 300 brand were up over 20% compared to the similar Starbucks Energy which were up 17.6%.

Technically, MNST may have the upper hand in the short term as its Accumulation Distribution (ADI) and On Balance Volume (OBV) are in a bit better shape than those for SBUX.

Nevertheless, both stocks remain in an uptrend, which means that for now the caffeine wars seem to be more about consumer preference for the jolt they receive from their preferred brand.

Certainly, it is plausible to consider that we may be seeing a change of preference for getting a lift from coffee to energy drinks, but it seems as if the whole thing smells more of marketing than fact.

So, is MNST taking market share from SBUX? Or are we comparing apples to oranges? For now, it seems as if the "caffeine wars" dynamic is worth looking at. The bottom line is that both stocks remain in uptrends and that for now they both seem worth owning.