4 ms·
I think it's more informative to judge a brand by the profitability of the company owning it. I like to use return on equity: | Coca-Cola C
by 10ren 17y ago
I think it's more informative to judge a brand by the profitability of the company owning it. I like to use return on equity:
| Coca-Cola Co. | PepsiCo
return on equity | 27.51% | 34.83%
I was expecting Coke (KO) to be way ahead, but actually Pepsi is trouncing them - over the last 12 months, according to Wolfram).
http://www.wolframalpha.com/input/?i=KO+PEP http://www.wolframalpha.com/input/?i=KO+PEP
(you need to change the drop-down menu from "Fundamentals" to "ratios" - wolfram doesn't seem to have a way to get a link with a particular menu selection).
OK, so here's data that better fits my preconceptions, looking at the rat e of growth of equity, over the last 3 years:
2005 2008
Coke: 29,427.00 --> 40,519.00 = 37.7% over 3 years
Pepsi: 31,727.00 --> 35,994.00 = 13.4% over 3 years
http://www.google.com/finance?q=NYSE:KO&fstype=ii http://www.google.com/finance?q=NYSE:KO&fstype=ii (balance sheet, annual data)
http://www.google.com/finance?q=NYSE:PEP&fstype=ii http://www.google.com/finance?q=NYSE:PEP&fstype=ii (balance sheet, annual data)
- mohawk 17y agoI think you should look at return on assets, return on equity is too easily skewed by leverage.
- 10ren 17y agoHow so? I thought debt will cancel out in calculating net equity (e.g. you borrow $100 million to buy a $100 million plant, and the net equity is unchanged).
- derefr 17y agoBut the logos are just for their flagship products, not for the companies themselves. PepsiCo sells Aquafina, Tropicana, Fritos, Aunt Jemima and Life cereal (they also used to own Pizza Hut, if I recall.) The Coca Cola Company sells Dasani, Powerade, Minute Maid, Nestea and Rockstar. These facts have a lot more to do with your stats than one product's branding.