Pepsi’s revenue is double, but its market cap is half

The story

PepsiCo generates twice the revenue of Coca-Cola but has a market cap only half as large, despite a long history of competition in the soda industry.

Source: fortune.com

Our reading

PepsiCo makes more money than Coca-Cola, but investors don’t value it as highly—like a kid who eats more pizza but gets less dessert.

It’s not just about how much you make, but how much you’re seen to be worth, which is a bit like being the classmate who brings the most snacks but still gets stuck with the least fun homework.

Maybe investors are just waiting for Pepsi to finally figure out what it wants to be when it grows up.