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Unformatted text preview: PepsiCo has fluctuating margins. Is there a reason that one company can have steady margins and another will have fluctuating margins other than possible miscalculations from internal sources in regards to sales, marketing or manufacturing strategies? I would prefer to go with slow and steady, verses fluctuating highs and lows. Both Coca-Cola and PepsiCo had a significant drop in the amount of capitol that was reported. PepsiCo capitol dropped by $839 Million and Coca-Cola dropped by $734 Million. Another factor to consider would be the Payout Ratio. During 2005, Coca-Cola had a payout ratio of nearly .55%, as opposed to only a .40% payout offered by PepsiCo. For these reasons, I would invest my money with Coca-Cola....
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- Spring '09