Nobody downloaded yet

Pepsi Co and Coca Cola Stock Analysis - Essay Example

Comments (0) Cite this document
INTRODUCTION This report analyses the stock price of two companies; Pepsi and Coca Cola. The report uses the stock price movements of the two companies and then identifies which of these companies yields more returns and which of these companies is riskier…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER94.1% of users find it useful
Pepsi Co and Coca Cola Stock Analysis
Read TextPreview

Extract of sample "Pepsi Co and Coca Cola Stock Analysis"

Download file to see previous pages The report at the end presents the summary of what has been learnt in the report. COMPARING THE STOCK PERFORMANCE OF TWO FIRMS Historical prices of Pepsi co Adjusted closing price has been taken for the calculation of returns and risk. The average stock returns are found to be negative (-0.08) (Yahoo! Finance, 2013a) Historical Prices of Coca Cola Company STDEV 0.0101 The Adjusting closing has been taken for calculating returns and risk. The average returns are negative (-0.15) (Yahoo! Finance, 2013b). Dow Jones Industrial Average NASDAQ Composite Index The latest price at which the Pepsi co Philippines traded is 6.19, it is 10.03% below its high 52 week of 6.88. The listing of Pepsi co products are primarily on Philippines Stock Exchange (Financial Times, 2013). (Financial Times, 2013) Market closed at 40.81, which is 6.03% below its high 52 week of 43.43. The listing of Coca Cola Company products are primarily on NYQ. Interest Rates: For the last four years wages are being flat and there is no hint of an increase in inflation rate. In 1980s, women began to enter labor force, but still the work force participation is at its low rate. After the financial crisis the financial system has improved a lot, capitalization of the banks are managed in a better way, balance sheets are being improved by both the corporations and households and all these factors can positively impact not only the two companies but Dow Jones index as well as NASDAQ. Industry News: Despite the continuation of Fed with the policy of buying bonds and accommodation, stocks were more than expected rallied on Monday. The Dow industrials were at a positive sign for the whole day despite the sharp rise in Intel and Merck. With a success of key drug trial, Merck was up 3.8% while with the introduction of new processors of fourth generation, Intel was up to 4 %. The Dow industrial average was increased by 138 points at the closing with 15,254 and NASDAQ was up to 9 points with 3465. 545 million shares were traded by NASDAQ; there was an increase in the volume on NYSE with 879 million shares being traded. Dow Jones industrials violated the moving average of 20 day. The support zone focused concentration on Monday with 15,115 from 15,000. The index of Dow Jones was on a lead till March. Therefore such factors can also impact companies like Coca Cola and Pepsi as they are also traded on similar stock exchange. Company News The Coca Cola Company has announced its investment in Myanmar on Tuesday 4th June. The production of the company will be in Myanmar with an investment of $200 million. This investment will lift its shares in the market and profits will be enormous. The coca cola company was given the investment permit for the foreign investment Law by Myanmar. It is the first production of Coca Cola in decades. The Dow Industrial Average secured an uneven recovery has led the 30 giants of America which includes Coca Cola Company, Microsoft etc to the most comprehensive event (Eavis, 2013) PepsiCo has started its joint venture with the Theo Muller Group, established a new art-state manufacturing of yogurt plant in Batavia, New York. There’s an employment capacity of around 180 people. PepsiCo is the leader in food and beverages it has no less than $65 billion of net revenues. With twenty two brands in the portfolio PepsiCo enjoys over $1 billion to in each brand in a result of its annual sales. With the joint venture with the Theo Muller group Pepsi co enjoys expansion in stocks. PepsiCo due to increasing its price on Feb. 2013, ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“Pepsi Co and Coca Cola Stock Analysis Essay Example | Topics and Well Written Essays - 1250 words”, n.d.)
Pepsi Co and Coca Cola Stock Analysis Essay Example | Topics and Well Written Essays - 1250 words. Retrieved from
(Pepsi Co and Coca Cola Stock Analysis Essay Example | Topics and Well Written Essays - 1250 Words)
Pepsi Co and Coca Cola Stock Analysis Essay Example | Topics and Well Written Essays - 1250 Words.
“Pepsi Co and Coca Cola Stock Analysis Essay Example | Topics and Well Written Essays - 1250 Words”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Pepsi Co and Coca Cola Stock Analysis

Investment Decision: Coca-Cola Vs. Pepsi

...Pemberton (an Atlanta Pharmacist) in the year 1886. However, John Pemberton did not live long to see the success of his innovation and enjoy the fruits of his creativity as he died only two years after forming Coke (Byrne, 2010). Little did these two pharmacists know that their innovativeness and creativity would spark decades of rivalry while competing for the market share. Stock Prices In the last few years, Coca Cola (KO: 37.71 +0.88%) stock has been outstanding and outperforming that of Pepsi (PEP: 70.26 +0.34%). In particular from 2008, the stock price of coke has gained more 35% compared to that of Pepsi which has...
10 Pages(2500 words)Assignment

Coca Cola vs. Pepsi Cola

...contributions    $ 165    $ 234               Better stock option and preference for employment: One of the bigger debates that range on within the Consumer Staples sector is whether Coca-Cola or PepsiCo is a better investment. The two carbonated and non-carbonated soft drink manufacturing behemoths take up over 70% of the world wide beverage sales and have been solid equity holdings since well before I was born. Raising dividends and consistent earnings might as well be each company’s middle name, but the debate of which one is better still rages on. While both are solid investment ideas, they are still fundamentally different in many ways. Beverage Trends: One of the most important...
4 Pages(1000 words)Research Paper

Comparing Coca-Cola Enterprise and Pepsi Co. Financial Management

...-Cola Enterprise is less risky because of its 0.946 debt ratio as compared to Pepsi Co’s 0.562. The Current Ratio highlights the liquidity of the company, higher the current ratio means more liquid the company is and that the company’s cash is generated fast enough to settle its current liabilities. However, in this analysis the debtors and creditors turnover period shall also be taken into account. All thing taken the same in case of both companies, it is apparent from the calculation that the Pepsi Co is more liquid than Coca-Cola Enterprise because of its Current ratio of 1.143 as compared to...
4 Pages(1000 words)Research Paper

SWOT Analysis of Coca Cola and Pepsi

...? Company Analysis The consumption of soft drinks, especially among the youth, has become a popular culture in the contemporary society. The soft drinks in the market vary in taste and color depending on the manufacturer. Indeed, soft drinks control over half of the beverage market. Soft drinks may further de categorized under carbonated drinks and non-carbonated drinks (Daft, 2010). The major players in the soft drinks industry are Coca Cola and Pepsi, which virtually command more than half of the market. In essence, the products from the two companies occupy large shelf space, often covering more space than real food products like meat and dairy. This paper seeks to...
4 Pages(1000 words)Term Paper

Investment Analysis of Coca Cola and Pepsi and large accounting decisions are based on judgments, but this re changing with change in the accounting procedure which are followed in the world. Answer 6 All the liquidity ratios of Coca Cola is more than PepsiCo with both the current ratio and quick ratio showing more figure for the former as compare dot the later. Again the efficiency ratio of Coca Cola is more as compared to PepsiCo with ROE and ROA both being large for Coca Cola. Again the CAGR of Revenues and net profit for Coca-Cola is more as compared to Pepsi CO. Hence for these reasons I would recommend...
12 Pages(3000 words)Essay

Coca Cola/Pepsi Case

..., Coca-Cola and Nestle. The small players are gaining the market share with growth in population. Internal and external analysis: Strengths: Strong brand value for both companies Weakness: Less focus on product differentiation Opportunity: More markets can be tapped Threat: Health issues and norms and regulations of many countries Answer 2 Coca Cola is the market creator for their products. Coca Cola was the first company to make their entrant in the soft drink market. Coca Cola was constantly in competition with Pepsi Cola in terms of market share....
4 Pages(1000 words)Assignment

Marketing Strategy of Pepsi and Coca Cola

...Company will offer new bottle designs with contemporary graphics as well as extensive marketing support. In March 2005 PepsiCo snatched a deal from The Coca-Cola Company in the US. Taco John's International Inc., a privately-held Mexican food chain, signed a deal to mainly offer Pepsi's beverage brands in its 400 restaurants. The food company had previously stocked The Coca-Cola Company's products. In the UK, March 2004 saw Intercontinental Hotels Group (IHG) announce that it was planning to divest its Britvic soft drinks business, in which PepsiCo has a minority 10% shareholding, via an IPO. At the same time IHG announced that it had...
18 Pages(4500 words)Essay

Comparesion pepsi and coca cola

...Comparison of PepsiCo and Coca-Cola Table of Contents Introduction 3 Brief Overview of Pepsi and Coca-Cola 4 Missions and Objectives 5 Management andOrganisational Structure 5 Global Business of Pepsi and Coca-Cola 6 Internal Analysis of Pepsi and Coca-Cola 8 Global Strategies of Pepsi and Coca-Cola 10 Rivalry and Performance Analysis of Pepsi and Coca-Cola 11 Conclusion 15 Reference 17 Introduction The concept of...
9 Pages(2250 words)Assignment

Analysis of coca cola

...Coca Cola Analysis of Coca Cola Introduction Coca Cola is American multinational beverages company that manufacturers and markets non-alcoholic beverage concentrates and syrups. The company is headquartered in Atlanta Coca Cola is the largest beverage company in the globe that offers more than 500 brands in more than 200 countries (Srivastava & Verma, 2012). The brand portfolio includes carbonated beverages, non-carbonated energy drinks, waters, juice drinks, ready-to-drink coffees and teas. The mission of the company is to refresh the world, inspire moments of optimism and happiness while creating value and making a difference. The vision aims at creating great workplace, nurturing networks with partners, improving productivity... to...
4 Pages(1000 words)Essay

Financial Comparison of Pepsi Co. and Coca-Cola

...Financial Comparisons between PepsiCo and Coca-Cola Introduction This paper will make a financial comparison for the years 2004 and 2005 between twoof the most globally spread companies in the beverage industry, PepsiCo and Coca-Cola with the purpose of making recommendations for a better performance in the coming years. Both the companies are fierce competitors of each other; however they have been able to avoid price competition in order to garner high profits. Instead, they focus on enhancing respective brand images in the global market with intensive marketing strategies and reducing cost of production through better management and improved operational activities. In this paper, 2004 to 2005 financial analysis will be based... to 2005 in...
7 Pages(1750 words)Book Report/Review
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Pepsi Co and Coca Cola Stock Analysis for FREE!

Contact Us