Coke Falls Short in New Pepsi Challenge

Both companies are rated "buy" from TheStreet.com Ratings, with a solid grade of B. Because the equity model is quantitative in nature, the differences in strategy and product offerings need to be analyzed by individual investors.

Coke's biggest investor, Warren Buffett, seems to be on board with the move to integrate the company, though he's pointed out the difficulties. While the Oracle of Omaha may still be sucking down Cherry Cokes, he's among a dwindling number. As the shift occurs, Pepsi's product lineup seems better suited to excel. Coke should enjoy dominance for another few years, but to stay there, innovation will be key. As it stands now, Pepsi is a better long-term bet.

-- Reported by David MacDougall in Boston.

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