Is Coke or Pepsi a better investment? (2024)

Is co*ke or Pepsi a better investment?

Pepsi is the cheaper stock, but investors might still prefer paying the premium for co*ke over its less expensive rival. Sure, you can own Pepsi for 2.5 times sales, or less than half of co*ke's price-to-sales (P/S) ratio of 5.6. You'll get roughly the same 3% dividend yield in either case.

Why is Coca-Cola such a good investment?

Coca-Cola provides security, value, and passive income, and it's about as reliable as a dividend stock can be. Those are worthwhile qualities. It also works as a hedge in challenging times, as illustrated by its market-beating performance last year.

Why is Pepsi a good investment?

PepsiCo is also cash rich. The company has generated cash flow growth of 6.1%, and is expected to report cash flow expansion of 10.6% in 2024. PEP should be on investors' short lists because of its impressive growth fundamentals, a good Zacks Rank, and strong Growth and VGM Style Scores.

Who is more profitable co*ke or Pepsi?

Both companies remain solid in their financial performance, but Coca-Cola is leading in profitability margins and liquidity, while PepsiCo has had faster near-term growth.

Is PepsiCo a good long term investment?

The company's mix of snacks and beverages provides stability and growth potential in global markets. With its positive outlook for 2024, PepsiCo emerges as a promising investment in an uncertain economy.

Is Coca-Cola a good investment now?

Investors are bracing for slower sales growth again in 2024.

The beverage giant just reported positive operating trends for fiscal 2023, and yet co*ke was among the weakest performers on the Dow Jones Industrial Average for the year. Shares have gained just 2% in the last 12 months compared to the Dow's 19% rally.

Why is Pepsi stock better than co*ke?

1. The stock is cheaper. Even after outperforming KO stock in recent years, its price-to-earnings ratio is still slightly cheaper than co*ke's. On a price-to-sales basis, Pepsi (2.5) is markedly cheaper than co*ke (5.6).

Why was Pepsi so successful?

A superior distribution system, effective marketing (before it was called marketing) and incredible brand loyalty created legions of happy customers. Pepsi was the new kid on the block looking to prove something. They were hungry and willing to mix it up.

Why has Pepsi been so successful?

Overall, Pepsi's success can be attributed to its ability to adapt to changing consumer preferences, innovate, and expand its business through strategic acquisitions and global expansion.

Why was Pepsi a success?

Pepsi's early success can be attributed to the innovative marketing strategies of its founder. Bradham used newspaper ads, street signs, and even a horse-drawn carriage to promote his beverage. He also offered free samples to customers to get them to try the drink.

Is Pepsi or co*ke a better investment?

When looking at stock performance PepsiCo has outperformed Coca-Cola in every time frame. Looking back 10, 20, 30 years, Pepsi comes out on top. Even more impressive is that PepsiCo has done it with less risk and volatility as its maximum drawdown since 1985 was -36%, while Coca-Cola's was -50%.

Does Pepsi outsell co*ke?

Coca-Cola outsells Pepsi in most parts of the U.S., notable exceptions being central Appalachia, Montana, North Dakota, and Utah.

Is co*ke buying Pepsi?

Coca Cola is the most well known soft drink in the world but is one of these companies. According to the Coca Cola website, the company owns 200 brands. These includes drinks like Powerade, Innocent smoothies, and Fanta. Stating the obvious, but Coca Cola does not own Pepsi.

Is PepsiCo a safe investment?

The price. The good news is that Pepsi stock is reasonably priced considering all of these positive factors. Shares are valued at 2.5 times annual sales, or less than half of Coca-Cola's premium. On the downside, it is far less profitable, and its growth isn't quite as robust.

Is Coca-Cola a long term investment?

In the last 30 years, shares of the beverage giant have produced a total return (including dividends) of 1,130%. That lags the gains for the broader S&P 500. And yet, over the very long term, this top beverage stock has made for a solid investment.

Why is Pepsi stock falling?

The S&P 500 has posted a 24% total return in the past year, but PepsiCo stock is slightly down as investors worry about declining volumes and the effects of weight-loss drugs on future customer demand.

Is Coca-Cola a good investment in 2024?

co*ke is projecting organic sales growth of between 6% and 7% (compared to Pepsi's 4%) for 2024. The company is also expecting earnings gains to outpace revenue growth, likely keeping co*ke's profit margin close to its current impressive rate of nearly 30% of sales.

Does Coca-Cola have a future?

Coca-Cola's solid revenue growth and earnings per share increase signal a financially robust future. The company's varied product range underlines its adaptability and market dominance. co*ke's strategic agility and growth forecasts position it as a wise investment for 2024.

What are the pros and cons of investing in Coca-Cola?

Does anyone prefer Pepsi over co*ke?

In the blind taste test, the difference in percentage of participants who preferred co*ke over Pepsi decreased (Figure 1b). Forty-six percent preferred the taste of co*ke and 39% preferred the taste of Pepsi. About 15% of the participants showed no preference in the taste test.

How many prefer Pepsi over co*ke?

And research shows that 51% choose co*ke, while 23% would rather drink Pepsi.

Has Pepsi ever outsold co*ke?

In 1983, Pepsi outsold co*ke in supermarkets, forcing co*ke to rely on its bigger network of soda fountains and fast food tie-ins to maintain its market dominance. That was a triumph. And it gets better: because of Pepsi, Coca-Cola made a disastrous decision.

How did Pepsi beat co*ke?

Coca-Cola was the clear market leader at first, dominating the market with its signature formula and marketing campaigns. PepsiCo, on the other hand, eventually caught up, thanks in part to innovative marketing strategies and lower prices.

Why does Pepsi taste different now?

As of March 2023, the recipe for our classic Pepsi in cans and bottles has changed. The new formula now contains a lower amount of sugar with a blend of sweeteners to maintain the Pepsi taste people expect. We have updated the nutritional information on the packaging disclosing the reduced sugar content.

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