PepsiCo (PEP) Competitors

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

Is KO or PEP a better dividend stock?

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 $5.42 per share and has a dividend yield of 3.4%. Coca-Cola pays out 80.2% 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 79.9% 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 increased its dividend for 63 consecutive years and PepsiCo has increased its dividend for 53 consecutive years. PepsiCo is clearly the better dividend stock, given its higher yield and lower payout ratio.

Does the MarketBeat Community believe in KO or PEP?

Coca-Cola received 82 more outperform votes than PepsiCo when rated by MarketBeat users. However, 67.85% of users gave PepsiCo an outperform vote while only 67.84% of users gave Coca-Cola an outperform vote.

Company	Underperform	Outperform
Coca-Cola	Outperform Votes 1192 67.84%	Underperform Votes 565 32.16%
PepsiCo	Outperform Votes 1110 67.85%	Underperform Votes 526 32.15%

Do institutionals and insiders believe in KO or PEP?

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 company insiders. Comparatively, 0.1% of PepsiCo shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Does the media prefer KO or PEP?

In the previous week, Coca-Cola had 1 more articles in the media than PepsiCo. MarketBeat recorded 65 mentions for Coca-Cola and 64 mentions for PepsiCo. PepsiCo's average media sentiment score of 1.21 beat Coca-Cola's score of 1.20 indicating that PepsiCo is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Coca-Cola	51 Very Positive mention(s)	4 Positive mention(s)	7 Neutral mention(s)	3 Negative mention(s)	0 Very Negative mention(s)	Positive
PepsiCo	50 Very Positive mention(s)	3 Positive mention(s)	6 Neutral mention(s)	3 Negative mention(s)	1 Very Negative mention(s)	Positive

Which has preferable valuation & earnings, KO or PEP?

Coca-Cola has higher earnings, but lower revenue than PepsiCo. PepsiCo is trading at a lower price-to-earnings ratio than Coca-Cola, 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
Coca-Cola	$46.37B	5.85	$10.71B	$2.42	26.04
PepsiCo	$91.47B	2.38	$9.07B	$6.78	23.41

Do analysts prefer KO or PEP?

Coca-Cola currently has a consensus target price of $72.36, suggesting a potential upside of 14.83%. PepsiCo has a consensus target price of $183.92, suggesting a potential upside of 15.86%. Given PepsiCo's higher possible upside, analysts plainly believe PepsiCo is more favorable than Coca-Cola.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Coca-Cola	0 Sell rating(s)	3 Hold rating(s)	12 Buy rating(s)	1 Strong Buy rating(s)	2.88
PepsiCo	1 Sell rating(s)	10 Hold rating(s)	5 Buy rating(s)	0 Strong Buy rating(s)	2.25

Is KO or PEP more profitable?

Coca-Cola has a net margin of 22.45% compared to PepsiCo's net margin of 10.18%. PepsiCo's return on equity of 57.32% beat Coca-Cola's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Coca-Cola	22.45%	44.01%	12.07%
PepsiCo	10.18%	57.32%	11.02%

Which has more volatility & risk, KO or PEP?

Coca-Cola has a beta of 0.61, meaning that its stock price is 39% less volatile than the S&P 500. Comparatively, PepsiCo has a beta of 0.53, meaning that its stock price is 47% less volatile than the S&P 500.

Summary

Coca-Cola beats PepsiCo on 13 of the 22 factors compared between the two stocks.