Value Taste Test: Dump Coke and Buy Pepsi

NEW YORK (TheStreet) -- What is the price of security? In some instances, it is worth a great deal more than promises of higher returns. What I have come to realize is that often on Wall Street, "security" is often the most compelling reason for investors to enter a position on a stock. Such is the case for global beverage and food giants Coca-Cola(KO) and PepsiCo(PEP) .

While these two titans have battled it out in the market for years with their legendary "taste test," they both have been safe stocks by virtue of their stability, and they both continue to offer respectable dividends. However, on the heels of both companies having released their earnings results, the "value test" was again in session. Based on my preliminary samples, Pepsi was the clear favorite in terms of the better stock to buy.

Judging by the Numbers

Let's first take a look at Coca-Cola. First, the company reported results that were solid -- these were the numbers that we have come to expect. The company reported net income of $2.05 billion, or 89 cents per share -- representing an 8% increase above the 82 cents it reported a year ago. First-quarter revenue increased 6% to $11.14 billion -- topping the $10.82 billion it logged in the same period last year. Clearly, Coca-Cola demonstrated both exceptional revenue growth as well as an increase of 5% in volume that was very impressive.

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