Another quarter, another sparkling performance for Pepsi Bottling Group (NYSE:PBG) -- PepsiCo's (NYSE:PEP) largest bottler. A 5% increase in worldwide case volume fueled a 10% increase in revenue. Net income climbed from $0.71 per fully diluted share in the comparable quarter last year to $0.78 this year (minus one-time charges in both years).

Unlike its syrup-providing sister company, Pepsi Bottling's operations are capital-intensive, but there's still plenty of free cash flow to satisfy even the most discriminating accountant. After spending between $675 million and $725 million this year on capital expenditures, Pepsi Bottling expects to still have around $500 million for share buybacks, debt reduction, or other corporate uses.

Speaking of share buybacks, the company repurchased 3.3 million of its shares in the third quarter. Since starting its share repurchase program in 1999, the company has repurchased 95.7 million shares. Today it has $1.6 billion of treasury stock on the books.

Last quarter, the company raised 2005 earnings guidance to between $1.82 and $1.88 a share. Today, the company narrowed that target to a range of $1.83 to $1.87 a share -- pricing the stock at 15.2 times the mean analyst estimate of $1.86 a share.

Investors may hesitate when they see that competitor Coca-Cola Enterprises (NYSE:CCE), the world's largest Coca-Cola (NYSE:KO) bottler, trades for 14.8 times this year's analyst earnings estimate. But consider this: For the next five years, analysts expect Pepsi Bottling to compound earnings at 10% annually. That's 1.3% per year more than Coca-Cola Enterprises. In addition, Coca-Cola Enterprises has already missed analyst expectations. By all appearances, it'll be lucky to increase earnings by just 3% this year. On a P/E-to-growth ratio basis, that makes Pepsi Bottling look a lot prettier, pricing in at 1.52 compared to 1.7 for Coke Enterprises.

At midday, Pepsi Bottling stock is up 4% -- 8% above its year-ago price. Compared to its sector peers, this stock's value looks downright refreshing.

Coca-Cola is a Motley Fool Inside Value pick.

Fool contributor W.D. Crotty owns shares in PepsiCo -- and is headed to the fridge now for its namesake product. Click here to see the Motley Fool's disclosure policy.