With the market in the middle of a sell-off, Cramer knows that you may want to rotate into defensive stocks such as these.
But which is better?
"Right here, right now, I prefer the one that's acting better. Yep, I like Pepsi better than Coke here," said the Mad Money host.
Looking at the latest earnings, Cramer says Coke isn't it.
"Coke reported a one-cent earnings beat back on the 12th, but it was a low-quality beat driven by a lot of one-time benefits like gains on hedges and lower ad spending in Europe, as well as two extra shipping days in the quarter versus last year. Even with that though, the company's global volumes were up just 3% for the quarter, which was slightly below what Wall Street was expecting," he said.
"Pepsi, on the other hand, blew away the expectations when it reported two days later, delivering a 3-cent beat off a $1.06 basis, and this was a high quality beat driven by 5% organic revenue growth. And management's outlook for 2013 was pretty darned bright. CEO Indra Nooyi pointed out that at the beginning of last year, she told us that PepsiCo needed to use 2012 to reinvest in itself. But now they've done that, the business is looking good, and the company's ready to compete and create value in 2013," Cramer added.