By ANDREW BARY
Wall Street is giving PepsiCo little credit these days for its dominant position in snack food and its strength in beverages. Shares of the packaged-foods and soda giant are languishing at a discount to other big consumer stocks amid investor concerns over disappointing 2011 profit guidance. The Street also is worried about management's continued commitment to Pepsi's sugary and salty product portfolio as the company develops and emphasizes healthier foods.
PepsiCo shares (ticker: PEP), at around 65, are down 1.4% in the past 12 months, compared with a gain of 18% for archrival Coca-Cola (KO). Pepsi trades for 14.5 times projected 2011 profit of $4.46 a share, and 13 times estimated 2012 earnings of $4.87 a share. Its price/earnings ratio is sharply lower than that of Coke, at 17 times 2011 estimates, and below the P/Es of food companies such as H.J. Heinz (HNZ), Kraft Foods (KFT) and General Mills (GIS).
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Wall Street is giving PepsiCo little credit these days for its dominant position in snack food and its strength in beverages. Shares of the packaged-foods and soda giant are languishing at a discount to other big consumer stocks amid investor concerns over disappointing 2011 profit guidance. The Street also is worried about management's continued commitment to Pepsi's sugary and salty product portfolio as the company develops and emphasizes healthier foods.
PepsiCo shares (ticker: PEP), at around 65, are down 1.4% in the past 12 months, compared with a gain of 18% for archrival Coca-Cola (KO). Pepsi trades for 14.5 times projected 2011 profit of $4.46 a share, and 13 times estimated 2012 earnings of $4.87 a share. Its price/earnings ratio is sharply lower than that of Coke, at 17 times 2011 estimates, and below the P/Es of food companies such as H.J. Heinz (HNZ), Kraft Foods (KFT) and General Mills (GIS).
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