The Super Bowl: A Goldmine for Stock Picks? – Sodastream International Ltd (SODA), Mondelez International Inc (MDLZ)

The answer could be a close call. In 2009, Mondelez brought in $49 billion, compared to Pepsi’s $49 billion, but the soda giant eclipsed the food company’s earnings in 2010 and 2011 . Margin-wise, Pepsi’s operating income has slipped since 2010, from 18%, to 14%, with its net income totaling up to 9% . Mondelez, meanwhile, has a 6% net income margin, and a 12% operating profit. Amazingly enough, these companies also appear undervalued when compared to their industries’ average PE. Pepsi rings in at 19.48, compared to the beverage industry’s 24.41, and Mondelez is 14.95, compared to the “Confectioners'” industry standard of 24.71.

So Who’s the Winner?
In truth, both of these companies might be winners for a portfolio, and their prevalence during Sunday night’s game proves that they can shell out the money for a huge ad and profit off of it, instead of hemorrhaging money like a tragic newcomer. Still, keep an eye out for relative newcomer SodaStream. If its financials continue to sprint forward, and it continues to strategize as effectively as it did last weekend, Pepsi might soon have reason to worry.

The article The Super Bowl: A Goldmine for Stock Picks? originally appeared on Fool.com and is written by Caroline Bennett.

Fool contributor Caroline Bennett has no position in any stocks mentioned. The Motley Fool recommends PepsiCo (NYSE:PEP) and SodaStream. The Motley Fool owns shares of PepsiCo and SodaStream.

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