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Pepsi Co and Coca Cola Stock Analysis - Essay Example
Author : georgiana02
Pages 5 (1255 words)
INTRODUCTION This report analyses the stock price of two companies; Pepsi and Coca Cola. The report uses the stock price movements of the two companies and then identifies which of these companies yields more returns and which of these companies is riskier…
The report at the end presents the summary of what has been learnt in the report. COMPARING THE STOCK PERFORMANCE OF TWO FIRMS Historical prices of Pepsi co Adjusted closing price has been taken for the calculation of returns and risk. The average stock returns are found to be negative (-0.08) (Yahoo! Finance, 2013a) Historical Prices of Coca Cola Company STDEV 0.0101 The Adjusting closing has been taken for calculating returns and risk. The average returns are negative (-0.15) (Yahoo! Finance, 2013b). Dow Jones Industrial Average NASDAQ Composite Index The latest price at which the Pepsi co Philippines traded is 6.19, it is 10.03% below its high 52 week of 6.88. The listing of Pepsi co products are primarily on Philippines Stock Exchange (Financial Times, 2013). (Financial Times, 2013) Market closed at 40.81, which is 6.03% below its high 52 week of 43.43. The listing of Coca Cola Company products are primarily on NYQ. Interest Rates: For the last four years wages are being flat and there is no hint of an increase in inflation rate. In 1980s, women began to enter labor force, but still the work force participation is at its low rate. After the financial crisis the financial system has improved a lot, capitalization of the banks are managed in a better way, balance sheets are being improved by both the corporations and households and all these factors can positively impact not only the two companies but Dow Jones index as well as NASDAQ. ...