Pepsi vs. Coca Cola

Pepsi vs. Coca Cola! Both companies are also celebrated as Dividend Aristocrats, so this is an interesting performance comparison to run.

While Coca-Cola remains a popular choice for a refreshing afternoon drink, PepsiCo's stock has delivered more to its shareholders over the past five years, outperforming Coca-Cola significantly.

Take a look at this data visualisation. I ran it back to June 1972 as that was the furthest I could go. I haven't used a log scale because I wanted to look at the long-term spread, not the short-term bumps and events.

So what’s going on here? Both companies boast impressive dividend histories and similar metrics. But PepsiCo's portfolio extends beyond beverages to include snacks and foods through its Frito-Lay and Quaker Oats divisions.

These segments, constituting a significant portion of Pepsi's revenue and operating profit, provide resilience and potential for growth, particularly in international markets where Pepsi's scale translates to higher profits.

That’s not to say Coca-Cola is a bad stock, it’s just Pepsi seems to have had a marginally stronger long-term runway for growth.

Any thoughts on this comparison?

#Investing #Equities

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