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.
PepsiCo (NASDAQ:PEP) and Coca-Cola (NYSE:KO) are both large-cap consumer staples companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, community ranking, analyst recommendations, valuation, profitability, dividends, institutional ownership, media sentiment and earnings.
PepsiCo pays an annual dividend of $5.42 per share and has a dividend yield of 3.0%. Coca-Cola pays an annual dividend of $1.94 per share and has a dividend yield of 3.1%. PepsiCo pays out 81.5% 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. Coca-Cola is clearly the better dividend stock, given its higher yield and lower payout ratio.
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.
PepsiCo presently has a consensus price target of $187.58, suggesting a potential upside of 2.96%. Coca-Cola has a consensus price target of $68.27, suggesting a potential upside of 8.32%. Given Coca-Cola's stronger consensus rating and higher probable 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 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.
In the previous week, Coca-Cola had 2 more articles in the media than PepsiCo. MarketBeat recorded 42 mentions for Coca-Cola and 40 mentions for PepsiCo. Coca-Cola's average media sentiment score of 0.64 beat PepsiCo's score of 0.61 indicating that Coca-Cola is being referred to more favorably in the news media.
PepsiCo has a beta of 0.52, meaning that its share price is 48% less volatile than the S&P 500. Comparatively, Coca-Cola has a beta of 0.57, meaning that its share price is 43% less volatile than the S&P 500.
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 hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Summary
Coca-Cola beats PepsiCo on 14 of the 20 factors compared between the two stocks.
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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