{"id":191336,"date":"2025-02-14T19:20:48","date_gmt":"2025-02-14T19:20:48","guid":{"rendered":"https:\/\/learnexams.com\/blog\/?p=191336"},"modified":"2025-02-14T19:20:52","modified_gmt":"2025-02-14T19:20:52","slug":"knowledge-check-which-company-is-worth-less","status":"publish","type":"post","link":"https:\/\/www.learnexams.com\/blog\/2025\/02\/14\/knowledge-check-which-company-is-worth-less\/","title":{"rendered":"KNOWLEDGE CHECK Which company is worth less"},"content":{"rendered":"\n<p>KNOWLEDGE CHECK Which company is worth less, Coca-Cola or Pepsi? Coca-Cola because it has a lower market capitalization Pepsi because it has a higher price per share Pepsi because it has a lower market capitalization Coca-Cola because it has a higher price per share Click to open\/close each chart (la bola<\/p>\n\n\n\n<p><strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-ast-global-color-6-color\">The correct answer and explanation is:<\/mark><\/strong><\/p>\n\n\n\n<p>The correct answer is: Pepsi because it has a lower market capitalization.<\/p>\n\n\n\n<p>As of February 14, 2025, The Coca-Cola Company (ticker: KO) has a market capitalization of approximately $298.98 billion, while PepsiCo, Inc. (ticker: PEP) has a market capitalization of about $198.29 billion. \ue200cite\ue202turn0search1\ue201<\/p>\n\n\n\n<p>Market capitalization, often referred to as &#8220;market cap,&#8221; is calculated by multiplying a company&#8217;s current stock price by its total number of outstanding shares. It provides a comprehensive measure of a company&#8217;s total market value, reflecting investor perceptions of its future prospects and overall valuation.<\/p>\n\n\n\n<p>It&#8217;s important to note that a higher stock price per share does not necessarily indicate a higher market capitalization. For instance, as of February 14, 2025, PepsiCo&#8217;s stock is trading at $144.25 per share, while Coca-Cola&#8217;s stock is priced at $69.28 per share. Despite PepsiCo&#8217;s higher stock price, its overall market capitalization is lower than that of Coca-Cola. This discrepancy arises because Coca-Cola has a larger number of outstanding shares compared to PepsiCo, leading to a higher total market value.<\/p>\n\n\n\n<p>Market capitalization is a crucial metric for investors as it helps categorize companies into different size segments, such as large-cap, mid-cap, and small-cap. These classifications can influence investment strategies, risk assessments, and portfolio diversification decisions. Companies with larger market caps, like Coca-Cola and PepsiCo, are generally considered more stable investments, often referred to as &#8220;blue-chip&#8221; stocks.<\/p>\n\n\n\n<p>In summary, while PepsiCo&#8217;s individual stock price is higher, Coca-Cola&#8217;s greater number of outstanding shares results in a higher overall market capitalization, making PepsiCo the company with the lower market cap between the two.<\/p>\n\n\n\n<p>\ue200finance\ue202turn0finance0\ue201<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" src=\"https:\/\/learnexams.com\/blog\/wp-content\/uploads\/2025\/02\/image-541.png\" alt=\"\" class=\"wp-image-191337\"\/><\/figure>\n","protected":false},"excerpt":{"rendered":"<p>KNOWLEDGE CHECK Which company is worth less, Coca-Cola or Pepsi? Coca-Cola because it has a lower market capitalization Pepsi because it has a higher price per share Pepsi because it has a lower market capitalization Coca-Cola because it has a higher price per share Click to open\/close each chart (la bola The correct answer and [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[25],"tags":[],"class_list":["post-191336","post","type-post","status-publish","format-standard","hentry","category-exams-certification"],"_links":{"self":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts\/191336","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/comments?post=191336"}],"version-history":[{"count":0,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts\/191336\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/media?parent=191336"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/categories?post=191336"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/tags?post=191336"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}