Ladies and gentlemen, I have a very sad announcement. Pepsi is the better performer when it comes to stock returns in this heated debate of which cola company is better.
I know, I know, horrendous, but before I sell every share of Coke I own and purchase Pepsi, let's take a much more in-depth analysis.
Since The Coca-Cola company hasn't reported their 10-K for 2017, we'll view Pepsi's and Coke's 2016 and 2015 balance sheet, income statement, etc.
Pepsi reports a total of $9.09 billion in cash and cash equivalents in 2015 and $10.2 billion in 2016. Coke carries $8.3 billion in 2015 and $8.5 billion in 2016. Needless to say, both companies are strapped with cash that can be used by the company however they want. Pepsi just so happens to have a lot more cash compared to Coke. Total assets, counting inventory, goodwill, short-term investments, property, etc. is a different story. Pepsi has $69.6 billion in 2015 and $73.8 billion in 2016, meanwhile, Coke has $89.9 billion in 2015 and $87.2 billion in 2016.
Pepsi has a total of $57.6 billion in total liabilities in 2015 and $61.1 billion in 2016. Coke has $64.2 billion in 2015 and $64.0 billion in 2016.
Net assets (total assets - total liabilities) Pepsi has $12 billion in 2015 and $12.7 billion in 2016. Coke, on the other hand, has $25.7 billion in 2015 and $23.2 billion in 2016. So we realize that Coke is king when it comes to holding and having assets on their balance sheet while keeping liabilities low.
Coke currently pays an annual dividend of $1.48 per share, meanwhile, Pepsi pays out an annual dividend of $3.22 per share. Both companies have been phenomenal at paying out AND increasing their dividend over time. But Pepsi is king when it comes to paying out and increasing dividends over time.
I'll throw my bias out there, I think Coke is the better purchase/investment since their stock price is so cheap, I believe they have a stronger brand than Pepsi, and it's stealing market share of Pepsi (that one is actually a fact, it's not an opinion.) Still, I would not mind having a little Pepsi in my portfolio, since, well, Pepsi also has it's strong brand, not a cheap stock to purchase, but pays a hefty dividend.