Value Investing

Vladimir Dimitrov, CFA

Equity Bottom-Up

<ul>
<li>Coca-Cola's share price continues to outperform, while it is still attractively priced relative to peers.</li>
<li>High free cash flow generation and industry leading profitability set the company apart, even from the other leaders in beverages.</li>
<li>Although the company's strong international exposure results in lower return on capital, it offers a major competitive advantage.</li>
</ul>


Coca-Cola's share price continues to outperform, while it is still attractively priced relative to peers.
High free cash flow generation and industry leading profitability set the company apart, even from the other leaders in beverages.
Although the company's strong international exposure results in lower return on capital, it offers a major competitive advantage.


Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

Equity Capital Markets

<ul><li>PepsiCo and Coca-Cola have been the oldest rivals in the beverage business on whom one can find dozens of marketing case studies of how the two companies have fought each other tooth and nail in different geographies.</li><li>Today, we are looking to carry out a side-by-side comparison of the recent financial performance of both beverage giants and evaluate them from an investment standpoint.</li><li>In this report, we are looking to analyze the key qualitative factors that could influence the two companies’ stock price in the near future.</li></ul>

PepsiCo and Coca-Cola have been the oldest rivals in the beverage business on whom one can find dozens of marketing case studies of how the two companies have fought each other tooth and nail in different geographies.Today, we are looking to carry out a side-by-side comparison of the recent financial performance of both beverage giants and evaluate them from an investment standpoint.In this report, we are looking to analyze the key qualitative factors that could influence the two companies’ stock price in the near future.

PepsiCo vs. Coca-Cola - The Battle Of The Beverage Giants (12/2021)

Technical Analyst, Vermilion Research

Joe Jasper

Technical Analyst

Technical and Quantitative Research

Vermilion Research

Vermilion’s objective is to deliver timely, actionable, and unique technical research to professional investors through the application of our various technical indicators.

Our research strategists seek to highlight securities which we believe are at major inflection points, based on our various technical and quantitative indicators, and offer asymmetric risk/return profiles. Our unique research methodology, centered on relative strength, enables our strategists to deliver superior investment recommendations.

Our process begins by organizing the universe of actively traded stocks into discrete sectors, then into industry groups. We then apply our technical and quantitative tools to identify developing price trends. Once attractive trends are identified within a selected sector or group, we screen for individual stocks which we believe offer the best risk/reward profile. We provide a historical perspective that often reveals, through our long-term charts, how price patterns often repeat themselves over time.

Technical Analysis

US Treasury (10 Yr Generic) / Technical Analysis

Charts Highlighted: XLE, RYE, WTI Crude Oil, XLF, XLB, XLI, RCD, EEM, XLU, XLP, AWK, AEE, WMT, PEP, NUE, STLD, X, CMC, SMSMY, SCHN, RYI, TMST, MT, TX, MTL, ETR, FTS, CMS, CNP, LNT, NI, OGE, BKH, NEE, DUK, SO, and AEPCyclical value areas including Financials, Materials, Manufacturing, Transportation, and equal-weighted Discretionary display short-term improvement as interest rates show signs of a potential bottom at 1.13%. This is encouraging, however we are still neutral yet constructive overall. As we noted last week, we need to see the 10-year Treasury yield breach, and hold above, 1.45%, as well as sustained price improvement by small-caps (i.e., IWM above $234.50) before we can declare a new broad-based bull market.

Charts Highlighted: XLE, RYE, WTI Crude Oil, XLF, XLB, XLI, RCD, EEM, XLU, XLP, AWK, AEE, WMT, PEP, NUE, STLD, X, CMC, SMSMY, SCHN, RYI, TMST, MT, TX, MTL, ETR, FTS, CMS, CNP, LNT, NI, OGE, BKH, NEE, DUK, SO, and AEPCyclical value areas including Financials, Materials, Manufacturing, Transportation, and equal-weighted Discretionary display short-term improvement as interest rates show signs of a potential bottom at 1.13%. This is encouraging, however we are still neutral yet constructive overall. As we noted last week, we need to see the 10-year Treasury yield breach, and hold above, 1.45%, as well as sustained price improvement by small-caps (i.e., IWM above $234.50) before we can declare a new broad-based bull market.

10-Year Treasury Yield Below Key Resistance; Buying Utilities, Consumer Staples, and Steel Stocks

Quality-first, Business-perspective Strategy, Urbem (HK) Limited

Steven Chen

Quality-first, Business-perspective Strategy

Thematic (Sector/Industry)

<ul>
<li>The "travel" economics vary significantly across businesses even within the same sector;</li>
<li>In this article, I list three beverage names that have been winning not only domestically but also beyond the border;</li>
<li>All the companies have attractive business economics with a massive growth runway.</li>
</ul>


The "travel" economics vary significantly across businesses even within the same sector;
In this article, I list three beverage names that have been winning not only domestically but also beyond the border;
All the companies have attractive business economics with a massive growth runway.


Three Beverage Growth Stories that Travel Strongly Across Borders

<ul>
<li>US-based National Beverage has an atypical management culture that emphasizes long-term value creation;</li>
<li>The business outperforms its publicly-traded peers across many dimensions;</li>
<li>At the current level, the risk-reward ratio looks quite favorable for the company's long-term shareholders.</li>
</ul>


US-based National Beverage has an atypical management culture that emphasizes long-term value creation;
The business outperforms its publicly-traded peers across many dimensions;
At the current level, the risk-reward ratio looks quite favorable for the company's long-term shareholders.


This Atypically-Cultured Beverage Business Can Be Interesting!

United States

PepsiCo, Inc. operates worldwide beverage, snack and food businesses. The Company manufactures or uses contract manufacturers, markets and sells a variety of grain-based snacks, carbonated and non-carbonated beverages and foods in countries throughout the world.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Pepsico Inc (PEP US)

Coca-Cola: Still Holding The Crown

Coca-Cola's share price continues to outperform, while it is still attractively priced relative to peers. High free cash flow generation and...

Vladimir Dimitrov, CFA

PepsiCo vs. Coca-Cola - The Battle Of The Beverage Giants (12/2021)

PepsiCo and Coca-Cola have been the oldest rivals in the beverage business on whom one can find dozens of marketing case studies of how the two...

Baptista Research

10-Year Treasury Yield Below Key Resistance; Buying Utilities, Consumer Staples, and Steel Stocks

Cyclical value areas are improving, but so are defensives. In order to get more bullish, we need to see the 10-year Treasury yield break above...

Vermilion Research

Three Beverage Growth Stories that Travel Strongly Across Borders

Here are three high-quality, fast-growing beverage brands that have been winning not only domestically but beyond the border as well.

Steven Chen

This Atypically-Cultured Beverage Business Can Be Interesting!

An emphasis on long-term value creation, brand-based moat, massive runway, and fair share price could make National Beverage attractive to alpha...

Steven Chen

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)