Financial Analysis and Market Analysis of Coca-Cola - Assignment Example

Coca-Cola possesses the best known brand globally whilst PepsiCo possess massive brand-name reorganization but is more diversified than corresponding Coca-Cola. From the year 2009 to the year 2013, PepsiCo accomplished slightly better growth rate in terms of sales and net profit whilst Coca-Cola have maintained better profit margin with relatively lower cost of sales. Moreover, PepsiCo’s posed relatively lower short-term solvency risk to its underlying investors compared to the Coca-Cola. Both the companies exhibited low long-term solvency risk with PepsiCo’s risk being slightly upper than Coca-Cola’s.

Both the companies experienced an identical level of investors’ confidence and stock pricing. The companies’ stocks are mainly dividend generating stocks. Nevertheless, Coca-Cola had relatively dividend yield and corresponding dividend payout rate. Coca-Cola’s bigger profit margin and dividends are probably very attractive to a potential investor bur PepsiCo’s development potentials, business diversification, low short-term liquidity risk, low long-term solvency risk, better return on investment and effective asset utilization definitely make the company’s stock a better venture