Accounting 540, Investment Analysis

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Investment Analysis
Investment Analysis
In 1965, Pepsi Co was created through a merger of two companies Pepsi Cola and Frito Lay by Donald M. Kendall, President and Chief Executive Officer of Pepsi-Cola and Herman W. Lay, Chairman and Chief Executive Officer of Frito-Lay. Pepsi was originally founded in 1898 by Caleb Bradham, a New Bern, North Carolina, druggist, who first formulated Pepsi-Cola. Today, Pepsi is part of a portfolio of drinks that includes carbonated and non-carbonated drinks such as soft drinks, juices and juice drinks, ready-to-drink teas and coffee drinks, isotonic sports drinks, bottled water and enhanced waters. PepsiCo operates in four major fields. These fields include: PepsiCo Americas Beverages, PepsiCo Americas
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Coca-Cola is a much better balance sheet than Pepsico, even managing to have more cash on hand than debt during much of this time frame (SeekingAlpha.com, 2012).
After comparing the two it is companies, I would recommend that Coca-Cola is the better pick as far as who to invest in if given the opportunity to invest in one or the other. Through analyzing the many ratios and utilizing the components to accurately rationalize the status of the financial stability of the two companies Coca-Cola has proved to have a higher financial accountability. There are many factors that brought me to this conclusion. Just look at the statements you can see that Pepsi Co. has more liabilities than Coca-Cola and that would generally be the case since Pepsi Co. has monies invested in other products and Cola does not have any other involvements in other products.
References
Investorguide.com (2012). Can Pepsi (PEP) Follow Coca-Cola’s (KO)Lead? Retrieved December 15, 2012 from, http://www.stocksinthefuture.org/general/currentNews?a=1
PepsiCo.com (2012). Historical Price Lookup. Retrieved December 15, 2012 from, http://www.pepsico.com/Investors/Stock-Information/Historical-Price-Lookup.html SeekingAlpha.com (2012). Coca-Cola Vs. Pepsico: Which Is The Better Investment? Retreived December
15, 2012 from http://seekingalpha.com/article/1037631-coca-cola-vs-pepsico-which-is-the-

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