Summary
The success of the two companies has led to saturated markets that constrain growth.
Both companies' recent acquisitions are designed to drive growth.
Current valuations differ markedly.
Early in 2014, I authored my only other article on PepsiCo (PEP) and Coca-Cola (KO). After conducting an extensive due diligence study, I wrestled with the data until I determined the company with better prospects, albeit by a small margin, was Coke.
I was wrong!
Since that date, Coca-Cola shares have appreciated by a hair over 30%. PepsiCo stockholders, on the other hand, have enjoyed nearly a 45% gain. That doesn't take into account the dividends paid by each company. It also doesn't take into consideration that KO is near its multi-year peak while PepsiCo is coming out of a recent trough.
PepsiCo and Coke are stalwarts, beloved by the DGI community, and for good reason. One's initial investment is unlikely to suffer over the long term while shareholders garner ever-increasing dividends.
This article attempts to reassess the prospects of both companies, without rehashing the well-known aspects of an investment in either.
