PepsiCo (PEP) Competitors

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

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	$47.06B	6.39	$10.63B	$2.47	28.29
PepsiCo	$91.85B	2.19	$9.58B	$6.95	21.09

Which has more risk & volatility, KO or PEP?

Coca-Cola has a beta of 0.57, meaning that its share price is 43% less volatile than the S&P 500. Comparatively, PepsiCo has a beta of 0.49, meaning that its share price is 51% less volatile than the S&P 500.

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

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

Is KO or PEP more profitable?

Coca-Cola has a net margin of 22.59% compared to PepsiCo's net margin of 10.43%. PepsiCo's return on equity of 58.87% beat Coca-Cola's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Coca-Cola	22.59%	45.37%	12.24%
PepsiCo	10.43%	58.87%	11.28%

Does the MarketBeat Community favor KO or PEP?

Coca-Cola received 93 more outperform votes than PepsiCo when rated by MarketBeat users. Likewise, 68.19% of users gave Coca-Cola an outperform vote while only 67.43% of users gave PepsiCo an outperform vote.

Company	Underperform	Outperform
Coca-Cola	Outperform Votes 1211 68.19%	Underperform Votes 565 31.81%
PepsiCo	Outperform Votes 1118 67.43%	Underperform Votes 540 32.57%

Does the media prefer KO or PEP?

In the previous week, Coca-Cola had 8 more articles in the media than PepsiCo. MarketBeat recorded 84 mentions for Coca-Cola and 76 mentions for PepsiCo. PepsiCo's average media sentiment score of 1.07 beat Coca-Cola's score of 1.04 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	53 Very Positive mention(s)	10 Positive mention(s)	18 Neutral mention(s)	2 Negative mention(s)	1 Very Negative mention(s)	Positive
PepsiCo	57 Very Positive mention(s)	6 Positive mention(s)	7 Neutral mention(s)	5 Negative mention(s)	1 Very Negative mention(s)	Positive

Do analysts rate KO or PEP?

Coca-Cola currently has a consensus price target of $74.24, indicating a potential upside of 6.26%. PepsiCo has a consensus price target of $169.88, indicating a potential upside of 15.87%. Given PepsiCo's higher possible upside, analysts clearly 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)	1 Hold rating(s)	17 Buy rating(s)	1 Strong Buy rating(s)	3.00
PepsiCo	1 Sell rating(s)	12 Hold rating(s)	6 Buy rating(s)	0 Strong Buy rating(s)	2.26

Is KO or PEP a better dividend stock?

Coca-Cola pays an annual dividend of $2.04 per share and has a dividend yield of 2.9%. PepsiCo pays an annual dividend of $5.42 per share and has a dividend yield of 3.7%. Coca-Cola pays out 82.6% 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 78.0% 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 64 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.

Summary

Coca-Cola beats PepsiCo on 14 of the 22 factors compared between the two stocks.