Coca-Cola (KO) Competitors

PepsiCo (NASDAQ:PEP) and Coca-Cola (NYSE:KO) are both large-cap consumer staples companies, but which is the better business? We will compare the two businesses based on the strength of their risk, analyst recommendations, community ranking, dividends, media sentiment, institutional ownership, profitability, valuation and earnings.

Is PEP or KO a better dividend stock?

PepsiCo pays an annual dividend of $5.06 per share and has a dividend yield of 2.8%. 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 increased its dividend for 53 consecutive years and Coca-Cola has increased its dividend for 63 consecutive years. Coca-Cola is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Does the media refer more to PEP or KO?

In the previous week, Coca-Cola had 8 more articles in the media than PepsiCo. MarketBeat recorded 46 mentions for Coca-Cola and 38 mentions for PepsiCo. PepsiCo's average media sentiment score of 0.61 beat Coca-Cola's score of 0.48 indicating that Coca-Cola is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
PepsiCo	16 Very Positive mention(s)	6 Positive mention(s)	10 Neutral mention(s)	2 Negative mention(s)	0 Very Negative mention(s)	Neutral
Coca-Cola	25 Very Positive mention(s)	4 Positive mention(s)	12 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Which has more risk and volatility, PEP or KO?

PepsiCo has a beta of 0.52, suggesting that its share price is 48% less volatile than the S&P 500. Comparatively, Coca-Cola has a beta of 0.57, suggesting that its share price is 43% less volatile than the S&P 500.

Which has better valuation and earnings, PEP or KO?

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.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PepsiCo	$91.47B	2.74	$9.07B	$6.65	27.40
Coca-Cola	$45.75B	5.93	$10.71B	$2.50	25.21

Do insiders and institutionals hold more shares of PEP or KO?

73.1% of PepsiCo shares are owned by institutional investors. Comparatively, 70.3% of Coca-Cola shares are owned by institutional investors. 0.2% of PepsiCo shares are owned by company insiders. Comparatively, 1.0% of Coca-Cola shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Is PEP or KO more profitable?

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.

Company	Net Margins	Return on Equity	Return on Assets
PepsiCo	10.00%	57.37%	10.80%
Coca-Cola	23.41%	42.74%	12.05%

Do analysts rate PEP or KO?

PepsiCo presently has a consensus target price of $187.58, indicating a potential upside of 2.96%. Coca-Cola has a consensus target price of $68.27, indicating a potential upside of 8.32%. Given PepsiCo's stronger consensus rating and higher probable upside, analysts clearly believe Coca-Cola is more favorable than PepsiCo.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PepsiCo	0 Sell rating(s)	5 Hold rating(s)	6 Buy rating(s)	0 Strong Buy rating(s)	2.55
Coca-Cola	0 Sell rating(s)	1 Hold rating(s)	8 Buy rating(s)	0 Strong Buy rating(s)	2.89

Does the MarketBeat Community prefer PEP or KO?

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.

Company	Underperform	Outperform
PepsiCo	Outperform Votes 1095 68.27%	Underperform Votes 509 31.73%
Coca-Cola	Outperform Votes 1173 67.73%	Underperform Votes 559 32.27%

Summary

Coca-Cola beats PepsiCo on 14 of the 21 factors compared between the two stocks.