the RIA analyst

RIAanalyst.com: Today we are initiating coverage of this soft-drink/snack duopoly with a “Buy” rating on Pepsi (HISTVAL target price 65 vs latest of 53.6) and a “Hold” on Coke (HISTVAL Target 48 vs latest of 48.1). We beleive that these are both well-managed, wide-moat companies, with powerful brands, economies of scale, advantageous distribution channels and broad international exposure. At present though, the valuation of Pepsi is more compeling based on our HISTVAL methodology, and we would take it as our pick of the two. Notably, Pepsi is trading at lower EV/EBITDA and EV/EBIT multiples while having higher ROIC, ROE and Long-Term Growth Estimate than does Coke.

The results of our HISTVAL model findings as well as some quick stats for each stock in this group are shown below. For greater detail, please see the PDF Report. For a step-by-step explanation of our HISTVAL methodology please see this Introduction to Histval(TM).

 

Data sources: MSN, Yahoo, Morningstar
 

Our Pick: Pepsi (PEP) ”BUY”
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• AVP: Alien vs. Predator rip

Sonny move

• Modigliani film

 

Peer 1:

Coke (Ko) “Hold”
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• Control Factor the movie

Transsiberian download  

Disclaimer: This information is presented for general purposes only and should not be construed as being the primary basis for an investment decision, or as reflecting recommendations taking into account your individualized requirements. As always, consult your financial advisor before making any decision based on this or any other information. (full disclaimer)

Raw data sources: Morningstar, AdvFn, Yahoo, MSN, Zacks

Details: Formatted PDF

Disclosure: Author is long PEP