Coca-Cola: The Surprising Reason Investors Should Choose Its Stock Over PepsiCo's
Coca-Cola's higher margins have likely sweetened one critical metric for investors.
Overview
Coca-Cola (NYSE: KO) stock is riding high following its second-quarter earnings report. The cola giant beat revenue and earnings estimates, and products like Diet Coke and Coke Zero delivered a particularly strong performance.
Nonetheless, a surface-level analysis of Coca-Cola versus archrival PepsiCo might persuade investors to choose the latter. After all, PepsiCo sells for a lower P/E ratio and its dividend yield is significantly higher. Also, even though Coca-Cola was one of Warren Buffett's most famous investments, Berkshire Hathaway has not purchased a single share since 1994.
Details
Fortunately for Coca-Cola bulls, a surprising reason may keep investors in Coca-Cola stock.
Source
Originally published at www.fool.com.