1. Coca-Cola (KO) earns a BUY rating for superior profitability and sustainable growth, outperforming PepsiCo (PEP) rated HOLD; 2. KO's focused beverage strategy and higher net margins provide efficiency advantages over PEP's capital-intensive diversified operations; 3. Both firms show manageable debt, but KO's stronger EPS growth and stability reinforce its long-term appeal, while PEP's undervaluation is offset by financial risks.