PEP vs. KO, MDLZ, MNST, COKE, FIZZ, DEO, KDP, STZ, ABEV, and BF.B
Should you be buying PepsiCo stock or one of its competitors? The main competitors of PepsiCo include Coca-Cola (KO), Mondelez International (MDLZ), Monster Beverage (MNST), Coca-Cola Consolidated (COKE), National Beverage (FIZZ), Diageo (DEO), Keurig Dr Pepper (KDP), Constellation Brands (STZ), Ambev (ABEV), and Brown-Forman (BF.B). These companies are all part of the "consumer staples" sector.
PepsiCo (NASDAQ:PEP) and Coca-Cola (NYSE:KO) are both large-cap consumer staples companies, but which is the better business? We will contrast the two companies based on the strength of their community ranking, earnings, dividends, institutional ownership, profitability, valuation, analyst recommendations, media sentiment and risk.
Coca-Cola received 80 more outperform votes than PepsiCo when rated by MarketBeat users. However, 68.27% of users gave PepsiCo an outperform vote while only 67.76% of users gave Coca-Cola an outperform vote.
In the previous week, Coca-Cola had 6 more articles in the media than PepsiCo. MarketBeat recorded 21 mentions for Coca-Cola and 15 mentions for PepsiCo. PepsiCo's average media sentiment score of 0.87 beat Coca-Cola's score of 0.86 indicating that PepsiCo is being referred to more favorably in the media.
73.1% of PepsiCo shares are held by institutional investors. Comparatively, 70.3% of Coca-Cola shares are held by institutional investors. 0.2% of PepsiCo shares are held by company insiders. Comparatively, 1.0% of Coca-Cola shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
PepsiCo pays an annual dividend of $5.06 per share and has a dividend yield of 2.9%. Coca-Cola pays an annual dividend of $1.94 per share and has a dividend yield of 3.1%. PepsiCo pays out 76.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Coca-Cola pays out 77.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
PepsiCo has a beta of 0.52, meaning that its stock price is 48% less volatile than the S&P 500. Comparatively, Coca-Cola has a beta of 0.57, meaning that its stock price is 43% less volatile than the S&P 500.
PepsiCo currently has a consensus target price of $187.58, suggesting a potential upside of 8.49%. Coca-Cola has a consensus target price of $68.58, suggesting a potential upside of 8.98%. Given Coca-Cola's stronger consensus rating and higher possible upside, analysts clearly believe Coca-Cola is more favorable than PepsiCo.
Coca-Cola has a net margin of 23.41% compared to PepsiCo's net margin of 10.00%. PepsiCo's return on equity of 57.37% beat Coca-Cola's return on equity.
Coca-Cola has lower revenue, but higher earnings than PepsiCo. Coca-Cola is trading at a lower price-to-earnings ratio than PepsiCo, indicating that it is currently the more affordable of the two stocks.
Summary
Coca-Cola beats PepsiCo on 12 of the 20 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding PEP and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NASDAQ and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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