PepsiCo vs. Coca-Cola: Which Stock Has the Edge?

Coca-Cola (KO) demonstrates stronger fundamental performance compared to PepsiCo (PEP), with better volume trends, margin expansion, and higher earnings growth expectations. While PEP trades at a discount valuation, KO's superior operating metrics and 27% YTD outperformance justify its premium valuation, earning it a Zacks Rank #2 (Buy) versus PEP's Rank #3 (Hold).