Coca-Cola or PepsiCo: Which currently offers the more attractive investment opportunity?

Coca-Cola, a company of remarkable quality and performance, has posted impressive results that span decades. As a true dividend king, Coca-Cola can look back on 62 consecutive dividend increases and has long been a part of Warren Buffett's Berkshire Hathaway. Continuous business expansion has turned numerous investors into millionaires. Nevertheless, it might be worth it for investors to take a look at competitor PepsiCo. Coca-Cola impresses with its global presence and brand strength, supported by massive marketing budgets and a robust distribution network. However, an investment approach à la Buffett could prove difficult here, as the company is currently not particularly attractively valued. Coca-Cola currently has a slightly higher price-to-sales ratio of 6.5 compared to its five-year average of 6.25. The price-to-earnings ratio is also at 28.5, above its long-term average of 26.3. With a dividend yield of 2.75%, which is close to its low point over the past ten years, the stock appears relatively expensive. In comparison, PepsiCo appears more favorable from a valuation perspective. Its P/S ratio of 2.6 is below the average of the last five years, and the P/E ratio is moderate at 25.8. The dividend yield, at 3.1%, is also attractively positioned. Moreover, PepsiCo scores with its diversification: besides its strong foothold in the beverage market, it is also a leader in savory snacks and packaged foods. This diversification offers PepsiCo risk mitigation that Coca-Cola cannot provide to the same extent due to its sole focus on the beverage segment.