Coke vs. Pepsi: Cramer picks a winner

While Coca-Cola's earnings report was underwhelming for markets, longtime rival PepsiCo is set for a "terrific" quarter and could represent a nice buying opportunity, CNBC's Jim Cramer said.

"Coca-Cola is a great American company," Cramer said on "Squawk on the Street" Tuesday. "When you listen to the quarter … you absolutely expect more from the company. But the great thing about it is they do to. They will readjust. It is not a sell."

As part of the earnings release, Coca-Cola's CEO Muhtar Kent said that he was "not happy" with the company's performance, while the company cited a challenging global economic malaise and bad weather for its performance.

(Read more: Coca-Cola's earnings meet, but CEO's 'not happy')

"I want to know if it was rainy on their side of the street and sunny on PepsiCo's side of the street," Cramer said, pointing out that Pepsi hit all-time highs in trading Monday.

"It doesn't cost that much to buy a Coke, so when I hear economic [and weather] problems ... I'll drink Coke whether it's hot or cold or wet," Cramer said. "Do you ever say 'gee, it's wet outside, I don't need a Coca-Cola'?"

On Pepsi, Cramer said that "this is the proven model: You need more than just drinks." While Coca-Cola owns a portfolio of more than 500 beverage brands, Pepsi operates a core beverage business along with diversified food and snack divisions.

(Related: Bulls debate bears on Coca-Cola)

Coca-Cola also cited currency headwinds as a reason for its weakness, with the strong U.S. dollar dampening sales overseas.

Based upon this, Cramer said that although the company is not a sell right now, "it's just not a buy. It will be. I don't want to sell it. It will be if it comes down to $36-$37."

Cramer said that although the company will straighten itself out, there is not enough weakness in Coca-Cola to make it a buy above $39, "not when I think that PepsiCo is going to report a terrific quarter."

He expects that Pepsi will have a good quarter because "snacks are really very hot globally." In addition, Coca-Cola has been ahead in international sales, so the year-over-year comparisons are less difficult for Pepsi and growth may come easier.

"The all-time great staple is Coca-Cola," Cramer said. "And it's flat."

—By CNBC's Paul Toscano. Follow him on Twitter and get the latest stories from "Squawk on the Street" @ToscanoPaul.