PEP vs. KO, DEO, PM, UL, BUD, PG, MDLZ, MO, CL, and BTI
Should you be buying PepsiCo stock or one of its competitors? The main competitors of PepsiCo include Coca-Cola (KO), Diageo (DEO), Philip Morris International (PM), Unilever (UL), Anheuser-Busch InBev SA/NV (BUD), Procter & Gamble (PG), Mondelez International (MDLZ), Altria Group (MO), Colgate-Palmolive (CL), and British American Tobacco (BTI). These companies are all part of the "consumer staples" sector.
Coca-Cola (NYSE:KO) and PepsiCo (NASDAQ:PEP) are both large-cap consumer staples companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, dividends, media sentiment, risk, valuation, profitability, community ranking, analyst recommendations and institutional ownership.
Coca-Cola has a net margin of 23.41% compared to Coca-Cola's net margin of 10.00%. Coca-Cola's return on equity of 57.37% beat PepsiCo's return on equity.
In the previous week, Coca-Cola had 4 more articles in the media than PepsiCo. MarketBeat recorded 45 mentions for Coca-Cola and 41 mentions for PepsiCo. PepsiCo's average media sentiment score of 0.67 beat Coca-Cola's score of 0.41 indicating that Coca-Cola is being referred to more favorably in the media.
Coca-Cola currently has a consensus target price of $68.27, indicating a potential upside of 7.82%. PepsiCo has a consensus target price of $187.58, indicating a potential upside of 2.44%. Given PepsiCo's stronger consensus rating and higher possible upside, research analysts clearly believe Coca-Cola is more favorable than PepsiCo.
Coca-Cola has higher earnings, but lower revenue 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.
Coca-Cola pays an annual dividend of $1.94 per share and has a dividend yield of 3.1%. PepsiCo pays an annual dividend of $5.06 per share and has a dividend yield of 2.8%. 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 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 has raised its dividend for 63 consecutive years and PepsiCo has raised its dividend for 53 consecutive years. Coca-Cola is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Coca-Cola received 78 more outperform votes than PepsiCo when rated by MarketBeat users. However, 68.27% of users gave PepsiCo an outperform vote while only 67.73% of users gave Coca-Cola an outperform vote.
70.3% of Coca-Cola shares are held by institutional investors. Comparatively, 73.1% of PepsiCo shares are held by institutional investors. 1.0% of Coca-Cola shares are held by insiders. Comparatively, 0.1% of PepsiCo shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Coca-Cola has a beta of 0.57, suggesting that its share price is 43% less volatile than the S&P 500. Comparatively, PepsiCo has a beta of 0.52, suggesting that its share price is 48% less volatile than the S&P 500.
Summary
Coca-Cola beats PepsiCo on 14 of the 21 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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