Pepsi vs. Coca-Cola - Investment Analysis



Abstract

PepsiCo. Incorporation & The Coca-Cola Company are the world's leading beverage brand owners. The rivalry between them has been age-old, and because of cut-throat competition and similar feature brands, it tends to grow more in the future. Being a student of investment analysis, it is important to understand the company i.e. its present operations, performance & position. The report is written with an aim to conduct investment analysis on both of the companies. It comprises of each company details, financial analysis of both companies accompanied with conclusion & recommendations.

Pepsi vs. Coca-Cola - Investment Analysis1

Introduction1

Coca-Cola International - Company Review1

PepsiCo. Incorporation- Company Review1

Technical Analysis2

Pepsi Cola International Stock Statistics & Chart2

Coca Cola International Stock Statistics & Chart3

Summarized News Events & Possible Impacts of Them on Their Stocks4

PepsiCo. Should Spin-Off & Acquire Mondelez4

Headquarters in Westchester4

Coca-Cola's $790 Million Merger5

Coca-Cola Held Responsible for Depletion of Water Resource in India5

Financial Analysis5

PepsiCo. Inc. Horizontal Analysis - Balance Sheet - 2012, 2011 & 20105

PepsiCo. Inc. Horizontal Analysis - Income Statement - 2012, 2011 & 20109

Cumulative Interpretations10

Coca Cola Company Horizontal Analysis - Balance Sheet - 2012, 2011 & 201011

Coca Cola Company Horizontal Analysis - Income Statement - 2012, 2011 & 201014

Cumulative Interpretations15

PepsiCo. Ratio Analysis16

Coca-Cola Co. Ratio Analysis17

Comparative Interpretations18

Conclusion & Recommendations19

References20

Pepsi vs. Coca-Cola - Investment Analysis

Introduction

Coca-Cola International - Company Review

The Coca-Cola Company is a global beverage leader & is a world's largest beverage company. Its head quarter is situated in Atlanta, Georgia. Coca-Cola was invented by John Pemberton, a pharmacist by profession. It was named as “Coca-Cola” by Pemberton's accountant, Frank Robinson. It was sold for a mere five cents then. Later, Asa Chandler in 1891 bought the recipe from Pemberton for $2300. He was the man who turned the Coca-cola into internationally renowned brand today. He & his brother cum partner, John S. Chandler, formed The Coca-Cola Company. In 1919, Ernest Woodruff bought the company for an amount of $25 million.

Today, Coca-Cola Company has reached almost every corner of the world. It is a beverage who has a presence in more than 200 countries. Company owns four major non-alcoholic brands i.e. (i) Coco-Cola, (ii) Diet Coke, (iii) Fanta & (iv) Sprite. They own different brands like teas, juices, sport drinks, waters & coffees. It serves more than 1.8 billion customers across the globe every day (Annual Report The Coca-Cola Company, 2012).

PepsiCo. Incorporation- Company Review

PepsiCo. Incorporation is the world's one of the most renowned & global leaders in food & beverage industry. It has also global presence of more than 200 countries around the globe and is a key competitor to The Coca-Cola Company. The company owns 22 brands in which each brand contributes about more than $1 billion in annual retail sales every year (Annual Report PepsiCo. Inc., 2012). Broadly, its brands are divided into 5 divisions i.e. (i) Pepsi (ii) Frito Lay (iii) Tropicana (iv) Quaker Oats (v) Gatorade.

PepsiCo. Inc. has been aggressively growing, but this all started in late 1890s. Pepsi Cola, formerly known as Brad's Drink, was invented by ...