Coca Cola And Pepsi

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There are over 5000 companies currently listed on the three main U.S. stock exchanges. There are constantly companies being added while others disappear. Two of the most profitable and longest mainstays on the market are the Coca Cola Company and PepsiCo Inc. Chances are, if you’ve owned stock in one of these companies, you’ve made a lot of money over the years. That’s not the purpose of this analysis though. We’re here to examine the financial outlook of each company for the future as well as compare the two companies from several important monetary angles. These companies, as well as all of the others listed on the stock exchanges, are used as investments for external users as well as internal ones.
Throughout their history, these are two constantly competing companies, fighting for total control over a shared market. In 2010 Coca-Cola and PepsiCo had a combined 72.3% of the U.S. market share for carbonated soft drinks (Esterl, 2011). While there is still some outside competition, these two companies have quite the stranglehold on their particular market. This leaves them to battle it out with each other on a constant basis. They seem to match each other step for step in their marketing strategies as well as their new product lineups. At this point, they almost seem to fight just to make sure they don’t fall behind the other. You could swap the labels on all of their products and probably struggle to determine which one belongs to which company.

According to "History: The Coca-Cola Company" (2014), “The Coca-Cola Company (NYSE: KO) is the world's largest beverage company, refreshing consumers with more than 500 sparkling and still brands. Led by Coca-Cola, one of the world's most valuable and recognizable brands, our Com...

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... capital structure included both preference and equity shares; however, Coca-Cola only utilized equity shares. PepsiCo’s equity was 48% of assets in 2004 and 44.92% of assets in 2005. During this time, PepsiCo saw a reduction in shareholders. In 2005, Coca-Cola had equity shares of 55.58% of assets in 2005 compared to 2004 when only 51% were equity shares. Because of the higher value of Coca-Cola’s equity shares when compared to PepsiCo led to Coca-Cola being a more profitable company in 2005.”

Esterl, M. (2011, March). Pepsi Thirsty for a Comeback. The Wall Street Journal, (), . Retrieved from http://online.wsj.com/news/articles/SB10001424052748703818204576206653259805970
History: The Coca-Cola Company. (2014). Retrieved from http://www.coca-colacompany.com/history/
Who We Are PepsiCo.com. (2014). Retrieved from http://www.pepsico.com/Company.html

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