Everyone is aware of the famed brand Coca-Cola European Partners PLC, which is why investors may be fooled into believing, that if you are investing into this industry, giant brand-names, such as this are the way to go. However, this is not the case, and long-time competitor PepsiCo, Inc. (NYSE:PEP) would be a better fit.
Although, this is critiqued by many, as Pepsi is known to be a smaller, and in the certain regions less popular brand. For example, South Africa is a location, where Pepsi has a very little market share in comparison to Coca Cola. However, there are reports, which illustrate, why exactly Pepsi is a better investment.
The proof behind the logic of Pepsi as an investment opportunity
The first thing to note about Pepsi is that the company blew expectations out of the water on Wednesday. This is due to the financial reports, which the company illustrated, which far out exceeded its long-time rival Coca-Cola.
In the fourth fiscal quarter, Pepsi even managed to outmatch the expectations of Wallstreet. The company reported profits of up to $1.4 billion, as well as adjusted earnings, which came in at $1.20 a share. This is $0.04 higher, then what Wall street predicted.
The only negative impact, that Pepsi experienced during the fourth fiscal quarter, was the fact that the company missed the stock quote mark by $0.07 a share. The company managed to have a full-year prediction of $5.09 a share, and $5.16 was what was anticipated.
Coca-Cola’s earnings in comparison to Pepsi
If we look at the other side of the financial fence, it is clear that in the fourth fiscal quarter. Coca-Cola stood almost no chance against Pepsi. The iconic soda brand company, reported almost $500 million loss in profit, landing with a total profit of $9.41 billion, in the previous quarter, this mark was $10.01 billion.
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Furthermore, the over-year forecast earnings dropped down by a further four percent, which was a three percent lower drop, than was anticipated for the brand giant.
