Better Buy: Coca-Cola vs. PepsiCo

Better Buy: Coca-Cola vs. PepsiCo

Cola enthusiasts have long fought about the relative virtues of Coca-Cola (NYSE: KO) and PepsiCo (NYSE: PEP). Although there might never be a final answer to the question of which namesake cola is the better product, both of these companies have a key challenge in common: keeping up with changing tastes among consumers while avoiding potential regulatory hurdles. One key difference between the two stocks is that PepsiCo incorporates not only Pepsi beverages but also Frito-Lay snacks, and greater diversification offers PepsiCo shareholders a different set of risks and rewards from Coca-Cola's purer play on liquids.

Let's see how Coca-Cola and PepsiCo compare to determine which is the better buy right now.

Coca-Cola and PepsiCo have had solid performances over the past year. Coca-Cola stock has done better than PepsiCo, with a 12% return compared to the 6% the Pepsi maker has produced.

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Source: Fool.com