Despite this margin advantage, Coca Cola's ROE (return on equity) for 2014 stood at 22% (28% for 2012), lower than the 31% (29% for 2012) ROE generated by PepsiCo. Coca Cola has a higher margin than PepsiCo; however the latter seems to be using its capital more efficiently leading to a similar return on capital employed by both companies in the last two years. Further, PepsiCo's debt/equity mix works in favor of its equity shareholders, generating a higher ROE compared to Coca Cola.
Despite this margin advantage, Coca Cola's ROE (return on equity) for 2014 stood at 22% (28% for 2012), lower than the 31% (29% for 2012) ROE generated by PepsiCo. Coca Cola has a higher margin than PepsiCo; however the latter seems to be using its capital more efficiently leading to a similar return on capital employed by both companies in the last two years. Further, PepsiCo's debt/equity mix works in favor of its equity shareholders, generating a higher ROE compared to Coca Cola.
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