Which company is better to invest in, Coke or Pepsi Term Paper

Which company is better to invest in, Coke or Pepsi - Term Paper Example Although on the surface Coca-Cola and Pepsico appear to be quite similar there are some distinct differences between the two companies. Coca Cola is the world's largest non-alcoholic beverage company with a market capitalization of $147 billion. The company distributes over 500 non-alcoholic beverage brands Coca-Cola owns and markets four of the top five non-alcoholic sparkling beverage brands in the world including Coca-Cola, Diet Coke, Fanta and Sprite. Unlike Coca-Cola which is concentrated almost exclusively on beverages, a considerable portion of PepsiCo's product portfolio is in their macro snack division. The company offers over 200 refreshment brands worldwide. Some of their strengths are their youth oriented â€Å"New Generation† brand image which helps develop a long term customer base and their strong franchise system helped Pepsi become one of the leaders in the industry. With a market capitalization of $101 billion and major brands such as Frito-Lay, the number on e snack product brand in the industry, and popular brands such as Gatorade, Quaker, Tropicana, and Pepsi their product portfolio is much more diversified. As a consequence growth opportunities are far superior for PepsiCo compared with Coca-Cola. Although excellent growth opportunities abound for Pepsi in their snack food business as a whole, the company is much more susceptible to rising commodity prices, therefore it is more exposed to commodity price fluctuations compared to Coca-Cola.