Financial Analysis: Pepsi Vs Coca Cola

Synopsis of the companies3

PepsiCo3

Coca Cola3

Trend in the Stock Prices of the Companies5

Pepsico, Inc. (PEP) -NYSE5

The Coca-Cola Company (KO) -NYSE7

Companies in News9

Financial Analysis on the companies11

PepsiCo11

Profitability Ratios11

Valuation Ratios12

Liquidity Ratios13

Coca Cola14

Profitability Ratios14

Valuation Ratios15

Accuracy and Reliability of the Data16

Recommendations for Better Investment Decision17

References18

Financial Analysis: Pepsi Vs Coca Cola

Synopsis of the companies

PepsiCo

PepsiCo is a multinational food and beverages company, based in America. It is headquartered in New York, USA. PepsiCo was established in result of a merger between Pepsi cola and Frito-Lay. This billion dollar company was initiated by the establishment of Pepsi cola in the late 1890s and the Frito Company was founded in the year 1932. The main products by Pepsi Cola were Pepsi Cola, Diet Pepsi and Mountain Dew. The products by Frito Company are the famous Frito labeled corn chips, Lay's brand potato chips, Cheetos; Ruffles brand potato chips, and Rold Gold brand pretzels.Today, Pepsi is globally known for all these consumer brands and many more like, Aquafina, Quaker Oats, Doritos, Miranda, Tropicana Sierra Mist, Gatorade, AMP Energy, IZZE, Naked Juice etc.

All these brands are distributed and sold worldwide by only the certified bottlers of PepsiCo, independent distributors and millions of retailers. PepsiCo also partners with third party partners like Unilever to market and sell its ready to drink tea products in Asia, Middle East and Africa. The current chairperson and CEO at PepsiCo is Indra.K.Nooyi and the current President is Zein Abdalla. (Pepsico.com, 2013)

Coca Cola

The Coca Cola Company is a multinational company based in America. It is headquartered in Atlanta, Georgia. It is a manufacturer, marketer and a globally known retailer of non alcoholic beverages and syrups. It is the world's largest beverage company. The Coca Cola formula was first bought in the year 1889 by Assa Giggs who later on established the Coca Cola Company in the year 1892. The company now offers more than 500 brands in more than 200 countries worldwide.

The brands that come under Coca Company are: Coca Cola, Sprite, Dasani, Diet Coke, Glaciel vitamin water, Minute Maid, Fanta, Ciel, Dr. Pepper, Honest tea and many other brands. The Coca Cola only produces the syrups and then circulates those to its bottlers worldwide. These authorized bottlers then produce the finished products in cans and bottles with water and sweeteners. Muhtar Kent is the current Chairman and CEO at Coca Cola.(Coca ColaCompany, 2013)

Trend in the Stock Prices of the Companies

Pepsico, Inc. (PEP) -NYSE

The stock price of PepsiCo has declined substantially from its IPO. However, there is an increasing trend in the stock price of the company since year 2010 to year 2012.

The trading volume has show an increasing trend throughout. However in the year 2012, there is a decrease in the trading volume of the stocks that can result in losses for the company. The trading volume signifies the liquidity of the stocks and since it is showing a decreasing trend since 2011, it means there are less buyers and sellers in the market for the stocks of the ...