Pepsi or Coca Cola.. What's the better investment

       Coca-Cola and Pepsi are almost the exact same beverage- and the companies are very similar as well.. You can go down the line and compare product to product.. PepsiCo has Gatorade, Coca-Cola has PowerAde,  PepsiCo has Ocean spray and Tropicana and Coca Cola has minute maid and vitamin water. You can look down the line of product's and their respective counterpart has a very similar brand under their wing.

       But as similar as these companies products are- I look at them completely different when considering investing in them.

Dividends

      

       Both companies pay out a nice dividend- Coca Cola is currently yielding a 3.39% while Pepsi is yielding 3.24%- Obviously dividend investors will flock towards Coca Cola for the higher yield. However, the payout ratio is heavily in favor of Pepsi.

       Coca Cola is known for it's dividend that seems to always be increasing, the issue with this is when dividends are raised and profits don't increase with it they start to become upside down. If profits don't increase they will have to stop increasing the dividend or even cut it.

If your looking to invest in either of these companies for the dividend you can literally flip a coin. If you don't mind taking the risk of Coca Cola paying out a high margin of their profits then you can invest in them, or take the smaller but healthier dividend in Pepsi.


So let's look at the financial health of both companies

Net Income
PEP- 4.8B
KO- 1.2B

Total liabilities
PEP- 68B
KO- 70B

Gross Revenue
PEP- 63B
KO- 35B

Long term investments
PEP- 2B
KO- 21B

Goodwill
PEP- 15B
KO- 9B

Brand Diversity


       Coca Cola has a farther reach in terms of a customer base- They reach over 200 countries with their products and almost 97% of the worlds population recognizes Coca Cola or one of their brands. But Pepsi is not to far behind they are serving nearly 200 countries they offer a wider variety of products. On top of their beverages they also have a wide variety of snacks. They own Cheetos, Fritos, Doritos, Lays, Tostitos, Ruffles, Quakers and more. In fact over 50% of their revenue comes from snack foods.


In my personal opinion I would lean more towards Pepsi- The benefit of being more diversified is more attractive to me then the high dividend that Coca Cola offers. Plus PepsiCo has gotten out in front of the health cautious craze. In fact since the late 1990s the average soda consumption has steadily decreased while the consumption of sparkling water has risen. Pepsi has a wider range of products that can appease a larger group of people. Even if they are not featured in as many locations.



Some fun facts about PepsiCo

- They have 22 brands that have revenue of 22 billion a year.
- 58% of revenue comes from the United States
- 263,000 Global employees

Some fun facts about Coca-Cola
- 123,000 Global employees
- 3,600 products world wide
- Atlanta Georgia was the first place a coca cola product was sold.. It was sold






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