Companies that make shareholders wealthy must be efficient and profitable, and Coca-Cola meets both criteria. In a given year, the company converts roughly 20% to 30% of its sales into free cash flow and earns a solid 15% return on invested capital. In other words, good things happen when Coca-Cola invests in the business.

Coca-Cola has a proven track record of global brand power and a reliable dividend. Domino's is operating smoothly and growing despite global economic volatility. Both of these stocks trade at the same P/E ratio,

KO's focus on core brands, innovation efforts, redefined marketing approach and digital expansion position it for long-term growth.

Historically, Coca-Cola KO and PepsiCo PEP have been popular stocks among hedge funds and institutional investors. Speaking to the credibility of Coca-Cola and Pepsi stock, both are owned by renowned institutional investors such as Vanguard Group and BlackRock BLK.