Sign Up Now
Get instant access to over 1 million+ study documents
OR
Already registered? click here to login
By creating your account, you agree to our terms of service, privacy policy and student honor code.
Finance Project
Ratio
KO
PEP
Current Ratio
ROA
ROE
Debt Ratio
Fixed Asset Turn
Dividend Payout
P/E* as of today
There is little to choose from, between Coca-Cola and PepsiCo, based on the cash flow indicator and the investment valuation ratios. The cash flow indicator is the dividend payout ratio, and these companies are quite similar. Pepsi's is a tiny bit higher, but not higher in a significant way. Likewise, the P/E for these companies is in the same range. Coca-Cola's is the higher of the two. Both of these companies are in the same mature business, where there is limited growth upside. Thus, investors are likely looking for stability in either one. The both have roughly the same financial and investment characteristics. The primary differentiating factor is that the market has priced Coke a bit higher. Whether this means that Coke is trading high and will regress to the mean, or whether Pepsi is trading low, will make a different in which shareholder group is happier. But overall, there is not much to choose from between these two companies. They both perform fairly well, while operating in the same industry,...
As an investor, if I had to choose between the two, I would take Pepsi. The financials do not speak to much difference between the two, but Pepsi is the better-diversified of the two companies. It has a snack business, which gives it the edge to me. Furthermore, Pepsi still has a market or two that it does not yet operate in, and the same cannot be said of Coke. Pepsi probably has the bigger upside in China, where both companies still have room to grow. But more it is the diversification that I like about Pepsi. The diversification also makes Pepsi a better M&A target -- I'm thinking to the rumors of a tie-up with AB InBev. There's value in that, upside, so while I recognize that Coca-Cola is the market leader and a very well-run company, I see the upside in Pepsi as a diversified entity and one that has a little more creativity with respect to corporate strategy. It is much more likely to extract value either in an M&A transaction or by spinning off Frito Lay.
6. To choose between these two, you have to use non-financial criteria. Indeed, you have to when choosing between any companies. But in this case, the numbers…
References
Coca-Cola 2012 Form 10K
PepsiCo 2012 Form 10K
Pepsi Co Finance Project The taste of consumers is rapidly shifting. This is because they are becoming more health conscious and want products that meet these guidelines. In the case of Pepsi Co, the company is at a crossroads. They are known for providing a variety of sugary-based snacks and beverages. A few of the most notable include:: Lays, Ruffles, Doritos, Tostitos, Cheetos, Fritos, Santitas, Quaker oatmeal, grits, rice cakes, Aunt
A low concentration of market share is always held by many rival firms making the competitive landscape more intense. Threat of substitutes; Substitutes refer to other products in other industries. Pepsi deals with beverage industry and food industry for example. The private label food products that are low priced compared to those of Pepsi which is highly priced, is leading to price wars as customers opt for cheaper products. Buyer power;
("Contemporary Trends in Corporate Design," 2001) Pepsi's second era of expansion in the 1970's transpired when domestic markets at its corporate home base had become stagnant. Foreign markets were growing much faster than domestic markets and thus a source of greater volume of sales. It wished to maneuver itself ahead of its rival Coca-Cola by dominating the world, if it could not immediately dominate the domestic, American market. Globalization then
Finance Coca-Cola and Pepsi are the world's two largest producers of non-alcoholic beverages. Both companies are global in scope, and market hundreds of different products. Each has multiple billion-dollar brands. Yet, there are significant differences between the two. Coca-Cola has typically focused on its soft drink businesses, while Pepsi has sought to build market size through diversification. Corporate restructuring has allowed Pepsi to divest itself of its restaurant businesses and its
Pension Plans of Coca Cola Co. Vs. Pepsi Inc. Compare the pension plans of Coca Cola and Pepsi, noting what type of pension, and funded status as of 2007 end of year. A) Coca Cola Co. This is a Defined Contribution Plan. For its primary plan the employer matches 100% of participants contribution, up to 3% of compensation. Benefit obligation at end of year for 2007 was $3,517 million. Benefits paid for pensions plan were
Bottled portable water was not a significant product in the beverage industry in the US two decades ago. The industry was dominated and controlled by such giants as Groupe Danone SA’s Evian and Nestle SA’s Perrier. By 2002, the industry was worth $3.5 billion. In 1997, Pepsi made attempts to join the bottled water market. Some of the efforts included buying a spring water company and a shot at selling