Coca Cola Company (KO)

[fung_derf]

Anyone here own any $CCEP?

[fung_derf]

Stole this from another poster, but good read.

>>> Better Buy: Coca-Cola vs. PepsiCo


Motley Fool

By Stefon Walters

Sep 28, 2023


https://www.fool.com/investing/2023/09/28/better-buy-coca-cola-vs-pepsico/?source=eptyholnk0000202&utm_source=yahoo-host&utm_medium=feed&utm_campaign=article


KEY POINTS

Coca-Cola's higher margins are a testament to its efficiency and pricing power.

PepsiCo's broad portfolio helps hedge against declining demand in the beverage market.

Both have increased their dividend annually for decades -- making them Dividend Kings.


Investors can't go wrong with either choice, but one stands out as the better long-term option.

When it comes to non-alcoholic beverage companies, there's Coca-Cola (KO) and PepsiCo (PEP) -- and then there's everyone else. In the U.S., the two account for around 71% of the carbonated soft drink market. The dominance of that duopoly makes them attractive investment opportunities.

For investors looking to invest in one of these companies, there's no "wrong" option to go with here. However, each company has its own unique strengths and focus areas. Let's see which offers a more compelling case for investors looking to choose one to add to their portfolio.

Coca-Cola's financials seem to be stronger

Coca-Cola is the market leader in non-alcoholic beverages, but one thing that may surprise people is just how much more revenue PepsiCo brings in. In Q2 2023, Coca-Cola made around $12 billion in revenue, more than $10 billion less than PepsiCo made.

Despite the gap in revenue, both companies are similar in net incomes, which is a testament to Coca-Cola's profit margins.

Higher profit margins are important because they give companies more financial flexibility. Higher margins generally come with more cash flow, which companies use for things like research and development, acquisitions, and paying dividends.

Coca-Cola can operate at higher margins largely because of its focus on beverages, operational efficiency, and the pricing power it has thanks to its strong brands. PepsiCo's margins aren't shabby by any means, but its broader business means it has more complexities to deal with, which can lower efficiency.

There's a difference in portfolio diversification

PepsiCo's revenue gap over Coca-Cola can be attributed to its larger portfolio that includes beverages, snacks, and nutrition products. Coca-Cola's portfolio only consists of beverages. Both have iconic brands, including, but not limited to, the following:

Coca-Cola: Coca-Cola, Sprite, Powerade, Dasani, and Minute Maid.

PepsiCo: Pepsi, Gatorade, Lay's, Doritos, and Aquafina.

PepsiCo's vast portfolio can help provide a cushion during times when beverage sales may lag or consumer preferences shift. Coca-Cola dominates the beverage segment, but PepsiCo's diverse portfolio allows it to take advantage of consumer trends across multiple categories.

A good example would be PepsiCo's introduction of products tailored to health-conscious consumers, among them Naked Juice for vegetable and fruit-based smoothies, whole grain breakfast options, and sugar-free, zero-calorie alternatives to traditional sodas.

Both companies have admirable dividends

Regarding dividends, Coca-Cola leads PepsiCo slightly. At their current share prices, Coca-Cola has a 3.2% yield compared to PepsiCo's 2.8%.

Coca-Cola has increased its dividend annually for 61 straight years while PepsiCo has a 50-year streak, so both are Dividend Kings. However, PepsiCo has been increasing its dividend by larger percentages in recent years. PepsiCo has boosted its payouts by 36% in the past five years compared to Coca-Cola's 18%.

Dividend yields fluctuate with stock price, so you don't want yield to be a determining factor in your investment thesis, but it's important nonetheless. Maybe more important, though, is the sustainability of the dividend.

Neither Coca-Cola nor PepsiCo is in danger of needing to cut their dividends, but it's worth noting how much lower Coca-Cola's 56% dividend payout ratio is than PepsiCo's 81%. Coca-Cola's lower payout ratio gives it more flexibility to reinvest in the business or potentially accelerate its dividend increases.

Which should investors go with?

For long-term investors, the better choice now seems to be Coca-Cola. The stock is more expensive, with a price-to-sales ratio of 5.6 compared to PepsiCo's 2.7, but it has the foundation to be a stable and high-yielding stock for the long haul.

Between its top-tier brand equity, impressive margins, and lucrative dividend, Coca-Cola seems to be the more appealing choice for investors looking for reliability and a shareholder-friendly company. It also passes the Warren Buffett test as it is one of his top holdings.

[fung_derf]

Your PRU didn't work out so well for me. However, finally on the move.

[fung_derf]

Dang! You keep picking my long term winners. Dig harder! Don't be so lazy.
You've got 23 years of my posts to go through.
Meanwhile, you're hanging on to your penny stock praying someone pays them a nuisance amount to go away.
The more you post, the more I want to respond to you. It's like teaching throwing a ball to a 3 year old.

[DeerBalls]

Go look @ "his" call on RAD, Rite Aid...LOLOLOLOL

[fung_derf]

Not sure what that means. Are you asking if I've held this long time?

[TRUSTUNITS1000000]

Thanks, are you from here the 1990 sssss

[fung_derf]

I'm looking at the charts this morning of KO and PEP and they look very similar.
Considering the directions both companies have gone, I'm not really sure, other than a soft drink, that these companies are in the same business any longer.

[fung_derf]

Stock split history for Coca-Cola (KO)
Coca-Cola stock (symbol: KO) underwent a total of 6 stock splits.
The most recent stock split occured on August 13th, 2012.
One KO share bought prior to June 1st, 1977 would equal to 96 KO shares today.

Stock split list
Date Split Multiple Cumulative multiple
2012-08-13 2:1 x2 x96
1996-05-13 2:1 x2 x48
1992-05-12 2:1 x2 x24
1990-05-14 2:1 x2 x12

[TRUSTUNITS1000000]

Anyone know the price 1990, how many forward splits, if any

[fung_derf]

who is "we"?

[sylvia07]

I don't what you are talking about. a favor how?

[fung_derf]

Ya know, I was trying to do you a favor.
No good deed goes unpunished.

[fung_derf]

I actually own some PEP shares as well, but not nearly what I have in KO.
Right now, due to reinvested dividends I have 8110 shares of KO and 137 PEP.

[sylvia07]

Thanks, I think you are right! coke is the better one than pepsi...always... held coke shares...good dividend

[fung_derf]

LOL.... Good for you!!!
I do as well. When I ask for a Coke and they ask me "is Pepsi ok?" My answer is NO! No it's not. Pepsi is way too sweet. It's made for kids. Makes me switch to Dr Pepper.
Funny, my father was adamant we drank Coke.
If I'm going to eat pizza, you MUST have Coke with it. Nothing else works.

[sylvia07]

I own ko because I hate the after taste of pepsi!

[ernie44]

ok---will get some

[fung_derf]

Rum and coke? Yecchhh. The only thing that should be added to rum is pineapple juice and coconut.

[ernie44]

only kind to buy is zero sugar...because the RUM has some in it...besides alcohol

[ernie44]

Every Garage has a coca cola dispeser

visa accepted

[fung_derf]

PEP has outperformed KO by a bit, but I still prefer owning KO, and it's my biggest holding I believe.

https://www.nasdaq.com/articles/coca-cola-vs.-pepsico:-which-stock-has-more-fizz

[ernie44]

Italy's Father Guido says RC Cola , and Pepsi competes with Cola-coka

.............................

[ernie44]

Sold my coke shares and bought pepsi......long time ago

[BottomBounce]

Coke $KO has $41.19B of debt. Book value only $5.27

[mr_sano]

Divested the moment they started to meddle…it’s a shame to watch great American brands self destruct…they don’t even see it coming.

[ernie44]

mom said when I was young.... ''Peppicolla'' was my favorite

[Capt_Smith77]

I was speaking with a customer recently, who was working as a supplier for Coke, and he was telling me the nightmare he had to go thru in answering questions about his beliefs and personal views in order to work with Coke. It wasn't but a few weeks later that I found out about their DEI training for employees, and how disgustingly far they went in pushing their employees based on their race.

The video ads of "Woka Cola" stand true. I knew that they had an agenda for quite a while now, but never knew how bad it really was.

Not only do I have no reason to invest with them, but I also have no reason to buy their products any longer. I'm officially done with Coke after this latest debacle.

[1984ISHERE]

We need a Real CEO

instead of one who is more concerned about a "woke" agenda

[ernie44]

yecck is yeck-donalds

[fung_derf]

yecch...rum goes better with pineapple and coconut.

[ernie44]

Coke goes better with RUM...... still the best mixer

[fung_derf]

Looks like time to turn back on the dividend reinvest here. For tax reasons I can't sell (although maybe this year I can). Should be writing calls.

[ernie44]

to do that--you had to be employed by them---- We did that because................the market was tight....................


“Tighter than a straight man’s butt cheeks in prison”

[Jaade]

How to make a profit during the 2022 World Cup
World Cup 2022 is one of the big events this year.
It is a very good opportunity for businesses to promote their brands and increase revenue.
And is a good opportunity for Investors to recover capital and make profits from now until the end of the year.
Accompanying Coca-Cola in the 2022 World Cup season to increase profits.
- Register for support: https://forms.gle/tPrN9NBCJMe6cwEBA
- Contact information zalo: [phone]
- Email: [e-mail]

[TechWhiz]

Good Revenues and Earnings KO.

Price has remained steady all year despite the Market Turbulence - Holding Steady and Lookin' Good...

[conix]

KO Chart

[Lime Time]

Thanks. I'm buying KO. Taking 0% APR for a year and dumping it into KO and PEP. I suspect the market will go lower than it is.

[BottomBounce]

Shares of several companies in the broader industrial sector are trading lower amid overall market weakness on continued concerns over inflation and further Fed policy tightening. $KO

[Lime Time]

KO looks great. Huge winner.

[Lime Time]

KO at $65. Buying this bigtime. Rum n Coke time.

[sylvia07]

I remember when use to could buy directly from the company

[ernie44]

THAT coke stock was only shown in the paper when Ifirst got mine----before i had a broker---there was a place you could buy stock over the counter

[Lime Time]

KO Excellent Buy opportunity right now. Moving money over to join the fiz.

[1984ISHERE]

Time to ring the register

What was working last few months won't be in the next few

[TechWhiz]

Congrats KO!!! Fantastic Revenues and Earnings.

Another new all time high.

Keep it going KO. Warmer weather is coming so more sales are on the horizon.

Go KO!!!

[TechWhiz]

New all time high is very impressive especially with the Markets in roller coaster mode the past 2 months.

Keep it rolling Coke...

[sylvia07]

That was my first stock way back in the day!

[c3po_3]

Now that's funny ??

[ernie44]

ok will report that to OBIEWAN-KANOBEE