Not sure where to start? Growing up, there was always a major debate in my house: Coke vs. Pepsi. As a result, their operating profits are more similar than you might otherwise expect. If you check out Pepsi's nutrition facts, you can see that there's actually citric acid in the ingredients, whereas Coke is lacking in that category. Finance. Knowing your AUM will help us build and prioritize features that will suit your management needs. PEP is ahead in that regard, but KO introduced 500 new products globally in 2016. Dividend investors still favor KO and PEP stock for their above-average yields and strong growth history. Insenesed, at the change Coke fans started arguing against each other (Coke vs. Coke Classic) instead of battling with all of their Pepsi drinking fans for bragging rights. KO recently passed 100 million likes on Facebook, while Pepsi also maintains a strong presence. Monthly payments from Quarterly Payers ››. Effective strategies generate strong word of mouth and can reach millions of individuals in minutes. Both companies regularly produce commercials for the Super Bowl, while PEP is in the midst of a 10-year contract to sponsor the halftime show. ), we've decided to clue readers in on the quick tricks of how to spot a Coke from a Pepsi. Due to the cash-intensive nature of their businesses, PEP and KO have been able to offer shareholders a dividend yield well above that of the S&P 500 for most of the past decade. No: an identity crisis ensues. Thanks! It involves a simulation, a … Please help us personalize your experience. Let's now take a look at some key financial metrics to see how Coca-Cola and Pepsi stack up. PEP has produced consistent net profit margins of around 10%, while KO margins have been in the 15-18% range for the past several years. Yet Coca-Cola is the more profitable business, with an operating margin of greater than 27% over the past year compared to 16.4% for Pepsi. Coca-Cola was originated in Georgia while Pepsi was originated in North Carolina which means both of them are an American Coca-Cola was the first market entrant and started its production … Pepsi has more of a citrus taste, while Coke products have more of a vanilla-raisin taste. Research shows consumers see Coke as honest, … In the battle between Coke versus Pepsi, there are many factors to consider when choosing a winner. KO has averaged an 8.5% annual increase over the past decade, while PEP has posted an average raise of nearly 10% over the same time frame. Coca Cola aka Coke was established in the year 1886 in Atlanta by a pharmacist named Dr John S. Pemberton. In the first … Reproduction of such information in any form is prohibited. While KO’s net income has been trending downward in recent years, it manages to stay ahead thanks to superior margins. Companies can spend billions of dollars each year promoting their products to existing and potential customers. As a result, these companies are highly sought after by dividend investors for their predictable and sustainable income streams. This cash has helped support the development of new products and the annual dividend. PEP may own a more diverse product line, but KO has been able to drive more earnings to its bottom line. Pepsi is produced and manufactured by PepsiCo. Perhaps just as impressive as their streak of consecutive dividend increases is the rate at which KO and PEP have grown their dividends. Coca leaves, from which cocaine derives, was a primary ingredient, but were fully removed from the formula by 1929. However, Pepsi soon countered Coca-Cola’s successful ad campaigns of the 1930s and ’40s with the debut of the advertising jingle. Pepsi has a citrus, lemony flavor. Coke becomes a registered trademark in 1945 and goes public in 1962. KO and PEP are both strong cash flow generators, and have been for years. Coke and Pepsi are the two leading brands of beverages that may be classified as soda, pop or soft drinks. Free cash flow is essentially what is left over after a company pays all of its bills and reinvests back into its business. In spite of winning in blind taste wars, Pepsi is less popular … Pepsi also was created by a pharmacist–Caleb Bradham from New Bern, North Carolina, in 1898. Yet, the two … The Coke vs Pepsi thing is the perfect metaphor for not only business, but so much of life itself. Pepsi and Coca-Cola may be one of the most controversial drink debates of all time. A Look at Coke and Pepsi’s Data. Pepsi vs Coca Cola For more than a century, Coca Cola and PepsiCo have been the major competitors within the soft drink market. Both companies have been around for more than 100 years and sell billions of dollars of product annually. Coke vs Pepsi comparison. The Coke vs. Pepsi Taste Test Challenge has students design and carry out an experiment to determine whether or not students are able to correctly identify two brands of cola in a blind taste test. 4. An Atlanta businessman secured the rights to the product by 1891. A comparison between Pepsi and Coca Cola’s beginning stages of their business and growth.Sales 1. The intense rivalry between carbonated soft drinks (CSD) giants, Coca Cola and Pepsi is the stuff of legends. Battle of the brands: Pepsi vs Coke Advertisements By Hongkiat Lim in Artwork. Pepsi claims franchsises in 24 states in 1910.Pricing 5. Coke and Pepsi were both created before 1900. In 1939, Pepsi … Find out how much your money can grow by using our Compounding Returns Calculator. Coke's original name was Coca-Cola and Pepsi's was Pepsi-Cola. These two began battling for the nascent carbonated drink … Coca-Cola is also the more capital-light business -- Pepsi's cap… Check out the dividend history of Coca-Cola here and Pepsi here. The secret message of … The more than century-long war between PepsiCo (PEP) and Coca-Cola (KO) has grown more significant than just a soda duopoly. Respectively introduced in the year 1886 and 1903, both Coca-Cola and Pepsi were … Coca-Cola originally cost 5 cents a glass. The P/E ratios of both stocks have been climbing steadily over the past five years and now sit above that of the S&P 500. She has written and published the book, "Marilyn Monroe & Joe DiMaggio - Love In Japan, Korea & Beyond. Congratulations on personalizing your experience. Coca-Cola contained coca leaves and kola nuts, known to promote energy. In honor of Coca-Cola being invented today (way back in 1886! Perhaps just as impressive as their streak of consecutive dividend increases is the … Retirement news, reports, video and more. There was a likelihood of one giant soda brand and no competition between Pepsi-Cola and Coca-Cola. Coke is extremely bullish on beverages, while Pepsi is getting bigger on snacks. For decades, Americans have been asking each other Pepsi or Coke. Over the past five years, KO has significantly trailed the performance of both PEP and the S&P 500. ", Justin Sullivan/Getty Images News/Getty Images, Donald Bowers/Getty Images Entertainment/Getty Images, Joe Raedle/Getty Images News/Getty Images, Mark Renders/Getty Images News/Getty Images, A Web Experience brought to you by LEAFtv, Difference Between Club Soda and Tonic Water, Difference Between Root Beer & Cream Soda. My sisters and I were Team Coca-Cola while my mom was very much Team Pepsi; my dad, on the other hand, was … Coke is slightly saltier than Pepsi (33 mg sodium per 240 mL vs. 20 mg), but this is almost impossible to detect via taste. Dividend stocks making payouts in the next 10 business days and have a history of rebounding in price shortly thereater. There was a lack of random sampling in regards to the Coke vs. Pepsi research design as people who drank the drinks were only chosen from Dr. MacFarlane’s General Psychology class that … Pepsi is also characterized by a citrusy flavor burst, unlike the more raisiny-vanilla taste of Coke. 12 years later to this, Pepsi aka Pepsi Cola was established in the year 1898 by Caleb … Both KO and PEP are dividend aristocrats, which are companies that have raised their dividend for at least 25 consecutive years. All stock quotes on this website should be considered as having a 24-hour delay. Check out our Best Dividend Stocks page by going Premium for free. Coca-Cola commonly known as “Coke” owned by The Coca Cola Company – Atlanta Georgia. Pepsi fired the first salvo more than 40 years ago when it challenged its more established competitor in a taste contest that forced Coke to naively alter its winning formula and launch ‘New Coke’. Social media is an ideal channel for marketing a business, since users essentially opt in to receive low cost advertising. Build conviction from in-depth coverage of the best dividend stocks. A bottling plant was established in 1908. Hand picked by analysts based on Dividend.com rating system. Check out Why Pepsi is a Core Dividend Stock. Data sources: Morningstar, Yahoo! Certain financial information included in Dividend.com is proprietary to Mergent, Inc. ("Mergent") Copyright © 2014. By employing various advertising tactics, strategies such as blind taste … The continued weakness in soda sales has especially impacted KO’s stock. The modern PepsiCo company is a product of the merger between Pepsi-Cola and Frito-Lay, a crisp giant in 1965. Coke has a vanilla-raisin, almost molasses taste to it. Because of the possibility of human or mechanical error by Mergent's sources, Mergent or others, Mergent does not guarantee the accuracy, adequacy, completeness, timeliness or availability or for the results obtained from the use of such information. In 2016, KO eclipsed the $4 billion mark in worldwide ad spending with PEP spending around $2.5 billion. Rasmussen Reports conducted their own version of the so-called “Pepsi Challenge”, and we found Coca-Cola is the clear … Both companies have smaller, yet important, followings on other platforms such as Twitter and Instagram. CnnTees The rivalry between Coca-Cola and Pepsi is legendary. Brilliance vs. Nitwittedness. https://www.dividend.com/how-to-invest/7-charts-that-compare-coca-cola-and-pepsico-ko-pep/. Pepsi is the larger business in terms of revenue, with nearly twice as much as Coca-Cola. Coke's original name was Coca-Cola and Pepsi's was Pepsi-Cola. The original ingredients of Coca-Cola were intended to have health benefits and be refreshing. The Coca-Cola Company (KO) and PepsiCo (PEP) are two of the premier global consumer brands. KO may be able to produce more net income, but PEP has been generating more top-line revenue than KO for decades. On the other side, … My results also tied up, for I chose three Coke drinks and three Pepsi … Updated on April 6, 2018. Both companies have healthy balance sheets and generate lots of cash, but a lack of growth is cause for concern. KO is currently one of the ten highest-yielding Dow stocks, and both companies have doubled their annual dividend per share since 2007. … Coke vs. Pepsi The Dilemma: It … "Pepsi is sweeter than Coke, so right away it had a big advantage in a sip test. 6. Municipal bonds news, reports, video and more. I personally never though of it this way, but I can see it now. * Dividend.com does not provide financial advice and does not issue recommendations or offers to buy stock or sell any security. However, on an overall basis, both companies have been experiencing negative sales growth. Jennifer Jean Miller has worked professionally as a PR professional, writer and photojournalist since 2006, as an award-winning reporter for "Straus News," "LH!Weekly," TheAlternativePress.com, NJInsideScene.com and InsideScene.LA. Thanks to stagnating or declining net incomes, the valuations of the two beverage giants is starting to push into overvalued territory. Pepsi-Cola was originally coined “Brad’s Drink” in honor of its creator. Yet by the end of the year, it was clear the “mistake” had actually helped Coca-Cola’s sales, allowing Coke … Pepsi is also slightly higher in calories, with 150 to Coke's 140. Both have grown into longstanding global industry leaders. Fixed income news, reports, video and more. ... Sprite, Fanta and Coke won for the Coca Cola Company while Mountain Dew, Gatorade and Tropicana won it for the PepsiCo Company. The competition between Coke and Pepsi is a classic corporate battle that began in America at the turn of the century and has expanded into worldwide competitive warfare in the 1990s. Find other companies that have increased their dividends for more than 25 consecutive years, in our 25-year dividend increasing stocks page. Soda sales declined for the 12th consecutive year as investors have been turning to bottled water and other healthier beverages, a trend that could affect KO more than PEP. 2. Helpful 0 Not Helpful 0 But that burst … New Coke was sweeter like Pepsi. Top brands under Coke include Dasani, Honest Tea, Minute Maid, Powerade and Costa Coffee. Coke was created by John S. Pemberton in … The flavor of Pepsi is sweeter so it's stronger initially and you taste it faster. PEP’s more diversified lineup of food products has helped soften the blow of declining soda sales. Due to these factors, KO and PEP have both been underperformers compared to the broader market. Knowing your investable assets will help us build and prioritize features that will suit your investment needs. On three occasions between 1922 and 1933, Pepsi offered Coca-Cola the opportunity to acquire it. Enhance retirement outcomes with helpful tactics. Coke’s first price increase was in 1946, ending the decades long $0.05 coke. What is the value of your investable assets? It did not contain kola nut. The declining soda sales trend affects the core of both KO and PEP, but they are developing and growing a lot of new products to help replace that lost revenue. The premise of the original formula is the ingredients emulated Pepsin, and digestion aid. Coke vs. Pepsi - Ingredients Pepsi contains carbonated water, fructose corn syrup, sugar, caramel color, caffeine, phosphoric acid along with citric acid and natural flavor. Stay up to date with timely dividend news. There’s a lot to be learned, both shrewd and foolish, from Coke and Pepsi… This case examines … Make short-term dividend income. Browse our guide to explore. The biggest difference between Pepsi and Coke are their flavors. Learn from industry thought leaders and expert market participants. Pepsi saw bankruptcy twice in 1923 and 1931.Growth 3. Over the years, both companies have seen worldwide expansion of their markets, which include varying lines of beverages, apparel and paraphernalia with their respective logos. They’re leaders in their segment, but how do they compare? Coke and Pepsi are the two leading brands of beverages that may be classified as soda, pop or soft drinks. Portfolio management news, reports, video and more. Pepsi's and Coke's ingredient lists back this up, as Pepsi has 41 grams of sugar per 12-ounce serving while Coke has a mere 39 grams. When it comes down to it, Pepsi has a stronger first sip taste, but Coke goes d… It was first bottled in a plant in 1894. Dividend Growth. Which type of investor describes you best? Helpful articles on different dividend investing options and how to best save, invest, and spend your hard-earned money. Practice management news, reports, video and more. Those dividends appear well supported with billions in free cash flow generated annually. Higher free cash flows mean greater flexibility for the business to pursue new growth opportunities and pay higher dividends. This is an unbiased comparison of the two of the most popular carbonated beverages in the world -- Coke and Pepsi. Coke was invented in Atlanta by pharmacist John Pemberton in 1886. Pepsi-Cola bottling started out in Bradham’s pharmacy basement. The company was incorporated in 1905 and the name trademarked in 1906. The disastrous introduction of “New Coke” in 1985 appeared to set Coca-Cola back. Pepsi vs. Coca Cola. Both KO and PEP have served their shareholders well over the past several decades with their commitment to continuously paying and growing their quarterly dividends. During the early years of the Coke vs. Pepsi match-up, Coke had the edge thanks to a series of memorable and impactful ads. KO currently ranks #26 on the list of largest companies traded on U.S. stock exchanges, while PEP comes in at #37. Critical Facts You Need to Know About Preferred Stocks, Earn More With Dividend Stocks Than With Annuities for Your Retirement, Coca Cola Vs. Pepsi: Comparing Sales, Earnings & More. Part I: Setting the Stage The following activity is a great way to “set the stage” on the first day of class and give your students an overview of what they’ll be studying during the year. KO is primarily a beverage business, but PEP generates around half of its sales from food brands such as Doritos, Frito Lay and Quaker Foods. Coca Cola exceeded the sale of 1 million gallons in 1904. Often we choose things that have no real intrinsic superiority but they are convenient. A strong divide between diehard Coke drinkers and Pepsi enthusiasts has always existed.