Better Buy: PepsiCo vs. Altria
PepsiCo (NASDAQ: PEP) and Altria (NYSE: MO) are two stocks that have been headed in very different directions over the past few years, but where they go from here will depend on how diversified they are and their ability to handle what could be some very challenging economic conditions. Let's take a closer look to see which company is in better shape today.
In its most recent quarterly report, PepsiCo beat earnings-per-share expectations by a healthy margin of $1.56 versus estimates of $1.50. Its revenue of $17.19 billion, however, came in just 1.5% higher than the $16.93 billion that was expected by analysts. Its organic growth was a modest 4.3% from the prior year, and that's actually above the 4% it plans to finish 2019 with.
Those are good numbers, but they also aren't terribly strong given that the economy is still doing very well. And the company is still dependent on its North American market, perhaps a bit too much. With 60% of the company's sales coming from its home continent this past quarter, it has a lot of exposure there.
Source Fool.com
