UPDATE 4-Coca-Cola may best Pepsi in weak economy, results show
* Q3 EPS of 83 cents excl items tops view of 77 cents
* Revenue up 9 pct; global volume up 5 pct
* Coke shares end up 1.1 pct, Pepsi down 5.8 pct (Recasts to compare with Pepsi results, adds analysts)
NEW YORK, Oct 15 (Reuters) - As the cola wars spread to other battlegrounds, Coca-Cola Co (KO.N) has come out ahead of PepsiCo Inc (PEP.N), proving it can steal market share and grow even as a financial crisis threatens the global economy.
While analysts recommend buying both stocks as part of a defensive strategy during tumultuous times, third-quarter results this week show that Coke's global penetration and strong brands may do more to help it weather a spending downturn.
"I like both companies. I just prefer Coca-Cola for their international exposure and for not having the snack business," said Standard & Poor's beverage analyst Esther Kwon, who has a "buy" rating on Pepsi and a "strong buy" rating on Coke.
"I just think right now Coke's portfolio and their model works a little bit better than Pepsi's," she said.
Coke posted a better-than-expected 14 percent rise in quarterly profit on Wednesday, helped by strong international demand that offset declining sales at home.
The results sent its shares up as much as 8.2 percent before the market turned sharply lower on recession fears.
A day earlier, Pepsi posted a disappointing profit and cut its full-year forecast, saying U.S. consumers were drinking more water from the kitchen tap to save money.
Coke and Pepsi reported similarly weak results in North America, where drink sales by volume fell as budget-conscious consumers ate out less and made fewer trips to gas stations and restaurants.
The main difference, according to Edward Jones analyst Jack Russo, was that Coke's international reach gave it a bigger cushion against the U.S. slowdown. Coke itself cited growth in markets like China and India.
Coke "really relied upon the international platform that they have and they are a little further along on that platform versus Pepsi, especially on the beverage side," said Russo.
He has a "buy" rating on both, due in part to the companies' historically low valuations.
QUARTERLY SURPRISE Continued...
