Coca-Cola is the superior investment (TMF Edible's argument)
PepsiCo is the superior investment (TMF Gambit's argument)
Both are great investments (both arguments hold water)
Both arguments were flat -- blah!
I can't make up my mind between the two
Click here to see results so far.
Click here to see results so far.
I liked the discussion of the differences between the business models, but it only reinforced what I already knew about these companies.I would have liked to see more financial and/or valuation analysis -- particularly for KO. OK, so KO's cheap at 20x fwd earnings, and PEP's a good buy at 22x free cash flow. I can get that stuff myself in 30 seconds. How about some insightful ratio analysis or some commentary on earnings quality or questionable "footnote" issues?30 minutes more work by Gambit and Edible would have made a good article much more useful and an investment decision-making tool.Best regards,MA....long on PEP & PBG....
Pepsi is the winner in terms of the safety of diversity. Sure, Coke may be the world's most recognized brand, but you can find the blue and red swirl all over the world as well. Restaurants here are pretty well split 50/50 between the two in the soft drink area. But with the non-carbonated arena, it appears that Powerade is beating Gatorade. I don't really care for either, so I am not sure who will win in the end. What really surprises me is that Burger King has Aquafina water though they sell Coke products in the fountain.The kicker for me is the Frito-Lay division. I don't know if this is true in all parts of the country, but here in Montana you go to a grocery store snack aisle and discover 35 feet of Frito-Lay products and 10 feet of "everything else" which includes the store brand.In an era where diversifying is very important, I feel Pepsi gives me more products to choose from. And, as a believer in the "you are what you buy" strategy, I would have to place my stock decision on the contents of my cupboard.DISCLOSURE: FBC does not currently own shares of PEP, but it is on his wish list.
Both are very different companies. It pays to own both. And I do.-Steve
Both are very different companies. It pays to own both. And I do.I have to agree with Steve. Coke has one advantage by being well-known, but Pepsi has the diversification down pat. As much as I like Coke products, I actually prefer the new Sierra Mist over Sprite and 7up. New products seem to be the place to look.
Both are very different companies. It pays to own both. And I do.Well, their products cover different balances in their market segment, but their stocks both seem to respond very much the same to the market influences and to their narrow competition. Pull up an overlay graph of the two for the last 3 months, or 2 years, or ... I'm long PEP, but from these charts I'm not sure it matters which you choose to invest in.
my oh my, this is a great question but here's some research that I been conducting at the office I work at. During the last month and a half my area I work in has been selling pop to raise money for charity with choices of pepsi, diet pepsi, coke, diet coke, dr. pepper, and water. On any given day I sell almost a 12 pack of pepsi in one day , coke's a slow seller with a good day selling 4, it's even on diet pepsi and diet coke. Water sells well when its cold, and I like the specials that I been finding it for 99 cents for a 6 pack . If you had to have my opinion Pepsi the better choice as I buy at least 1 12 pack a every weekday for the next 2 months.
nmrguy says:Pull up an overlay graph of the two for the last 3 months, or 2 years...I'm long PEP, but from these charts I'm not sure it matters which you choose to invest in. ===============================Hello nmrguy:I pulled up a 5 year graph, using longer-term charts might help clarify the relative strength between PEP and KO...looks like PEP wins hands down.JTT
I pulled up a 5 year graph, using longer-term charts might help clarify the relative strength between PEP and KO...looks like PEP wins hands down.Yes, PEP also compares well against KO in the 6 month time-span. Year-to-year KO is down 20% while PEP has about the same value...JTT
Ok, enter the arogant neophyte fond of eating his shoe...Pepsi was cool a couple of weeks back. I being a newbie ran some quick analysis and found the numbers somewhat more appealing then KO. But, now with all the hype behind it and the obvious pop in price, is it really still the bargian? Why shouldnt I wait for it to leave the spotlight? Same with Home Depot, a few weeks back at 21.00 it looked really cool. Considering how high LOW was selling compared to HD, given that as pseudo-cool as Lowes may be its revenue is still a 'youngster' compared with HD. But, now HD is over 27, is it still a bargain? Why shouldnt I wait until everyone else forgets about HD again? Really now, why is Pepsi going to sell any higher then a few weeks ago? Is it worthy of the new price tag? Or has everyone just 'realized' a good company and now are lining up to drive the price to an artificial level?I realize I am an arogant neophyte chewing on his foot, but, why should I buy a company which hasnt changed its foundamentals in the past few weeks, it has only changed its price tag. Would seem a few weeks back was the time, now it seems like any number of good companies sporting a proper price tag.Feel free to feed me my shoe.....logixbean
I realize I am an arogant neophyte chewing on his foot, but, why should I buy a company which hasnt changed its foundamentals in the past few weeks, it has only changed its price tag. Would seem a few weeks back was the time, now it seems like any number of good companies sporting a proper price tag.I think you're right on the money. Pepsi, I think, has the better prospects than Coke, unless KO's price drops dramatically. Trouble is, Pepsi is a bit too high -- I want it at around $37. It was there just a few weeks ago and I missed it, dagnabbit. :/I think one just has to be patient and wait for the inevitable market panic that has nothing to do with the company itself.--Anthony
Irish; Patience can be the most important thing.A trust of which I am trustee acquored a small amt of PEP in 1966.I never sold-the adjusted cost is about .82(CENTS). A modest investment is now worth 300k plus and we did not reinvest dividends as the distribution of income is mandated.On the other hand I bought(for myself)HD about two weeks ago at 21 and like a fool(not Fool) sold it at 24.5. Greyfox
(Off-topic alert)Greyfox,Given the ridiculous compensation package Nardelli gets, I think you did the wise thing selling you HD. :)--Anthony
In the long term, I also believe that PEP has a stronger outlook because of its diversificated product line. I realize that KO is the most recognizable brand and has better margins, but is KO going to suffer in certain world markets because of anti-American backlash? I also agree that PEP may be a bit pricey right now. I think I'll sit back and see if it comes down a bit. Timing the market? Nah, just assuming that most any stock will go up and go down.
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