1 Huge Reason to Buy The Coca-Cola Company (KO): PepsiCo, Inc. (PEP), Dr Pepper Snapple Group Inc. (DPS)

With its share price gaining 10%, the cola giant barely lags only one U.S.-based competitor so far year to date, as PepsiCo, Inc. (NYSE:PEP)‘s shares are up just over 10% this year. Meanwhile, Dr Pepper Snapple Group Inc. (NYSE:DPS) has seen its share price increase by roughly 4% year to date. And Monster Beverage Corp (NASDAQ:MNST)‘s stock has lost 4%, far behind the cola giant.

But these three competitors don’t even come close to The Coca-Cola Company (NYSE:KO)’s sales diversity. Major rival PepsiCo, Inc. (NYSE:PEP) derives 43% of its revenues internationally. But PepsiCo, Inc. (NYSE:PEP) has recently been a tale of two segments — an innovative and well-performing snacks division, led by market-share-leading Frito Lay, and a beverage segment that’s been losing market share to Coke. Meanwhile, Dr Pepper Snapple Group Inc. (NYSE:DPS) operates primarily in mature North American markets. And while California-based Monster Beverage is now selling its beverages in new international markets, most of its sales are in the U.S.

Foolish bottom line
There’s no question that Coke faces challenges. In addition to legislative and regulatory risks, every other cola company on the planet would love to dethrone the king of The Coca-Cola Company (NYSE:KO). But its global diversification and ample international growth opportunities give Coca-Cola a leg up on the competition.

The article 1 Huge Reason to Buy Coca-Cola originally appeared on Fool.com and is written by Nicole Seghetti.

Fool contributor Nicole Seghetti owns shares of PepsiCo. Follow her on Twitter @NicoleSeghetti. The Motley Fool recommends Coca-Cola, Monster Beverage, and PepsiCo. The Motley Fool owns shares of Monster Beverage and PepsiCo.

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