Versus
Rachel Crutcher
FIN334
Professor Gilbert
June 7, 2015
Coke versus Pepsi is a challenge that has been around for a long time; however, the taste
test is not the only thing to compare when it comes to these two conglomerates. Investors have a
different view point. While Coke tends to lead the taste test, Pepsi is more appealing to investors.
Coke tends to have more long term potential due to overseas marketing; however, Pepsi
is providing larger short-term gain on investments. In terms of profitability, Pepsi did better than
ever over the last few years. The company‘s performance was considerably better than the
analysts anticipated. In its release, Pepsi attributed its higher-than-expected revenue to higher
sales from its Frito-Lay North America segment.
Even though both Coke and Pepsi have increased in dividends, Coke has a yield of 2.76%
and Pepsi has a yield of 2.93%. Therefore, Pepsi has a higher dividend yield and Mr. Dove states
