Pepsi vs Coke: Which Stock Protects Your Money Better by 2031?

Coca-Cola (NYSE:KO) and PepsiCo (NASDAQ:PEP) have reported their second-quarter results, with Coca-Cola outperforming Pepsi in terms of share price this year. However, a closer look at the projected scenario by 2031 reveals that both stocks offer different advantages to investors.

Coca-Cola's strong execution has already been priced into its stock, which is currently trading at $87.44 and 25 times forward earnings. Our model projects a base case of $140.09 by 2031, representing a 60.22% gain, while the bull case reaches $175.09, up 100.25%. On the other hand, PepsiCo's beaten-down price hides a sturdier floor, with our base case projecting a 55.02% gain to $199.53 and a bull case of $216.26, or 68.02%

The bear case for Coca-Cola is significantly lower than PepsiCo's, at just 15.82%, while PepsiCo's bear case is still up 28.18%. The dividend yield for Coca-Cola is 2.34%, compared to 4.35% for PepsiCo.