Your question: Should I invest in Pepsi or Coke?

Is it better to invest in Coca-Cola or Pepsi?

While PEP has a lower payout ratio and a stronger five-year dividend growth rate, KO has the higher yield. Should the current five-year dividend growth rates prevail for another half decade, not a given, Pepsi will have a yield on current cost of 4.18% versus 3.78% for Coca-Cola.

Is Pepsi a good investment?

Consumer staple stocks like PepsiCo (NASDAQ:PEP) can be a great addition to any long-term portfolio, as they are known to hold up well in recessions and provide consistent dividend increases over the years.

Is Coke a good stock to buy 2021?

As investors focus their attention on expected 2021 and 2022 results, we believe The Coca-Cola Company KO +0.9% stock has the potential for some gains once fears surrounding the Covid outbreak are put to rest. As per Trefis, Coca-Cola valuation reflects a fair price estimate of $60 for KO’s stock.

What sells more Coke or Pepsi?

Each company markets a large number of brands, with Coca Cola Company having the larger market share. This is reflected in drink sales with Coca-cola Classic continuing to outsell Pepsi. … Pepsi is found in most places around the world and is the preferred cola of choice for many people.

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Does PepsiCo pay a dividend?

PepsiCo has paid consecutive quarterly cash dividends since 1965, and 2021 marks the company’s 49th consecutive annual dividend increase.

Is Coke stronger than Pepsi?

Pepsi packs more calories, sugar, and caffeine than Coke. … “Pepsi is sweeter than Coke, so right away it had a big advantage in a sip test. Pepsi is also characterized by a citrusy flavor burst, unlike the more raisiny-vanilla taste of Coke.

Is Pepsi stock overvalued?

Is PEP stock overvalued? … In terms of valuation, our take is that PEP is undervalued. Compared to a 5-year average P/E ratio of 26x, the current consensus EPS estimates imply a forward P/E of 25x for 2021 and 23x for 2022. By this measure, shares are trading at a discount compared to historical valuation levels.

What is Pepsi’s competitive advantage?

PepsiCo uses cost leadership as its primary generic competitive strategy. This generic strategy focuses on cost minimization as a way to improve PepsiCo’s financial performance and overall competitiveness. For example, to compete against Coca-Cola products, PepsiCo offers low prices based on low operating costs.

How does PepsiCo make money?

With 53% of revenues coming from food, and the remaining 47% coming from the beverage, PepsiCo is an empire that in 2017 made over $63 billion in revenues. North America Beverage segment represented 33% of those revenues. While 58% of its revenues were in the US.