Diageo (DEO) Competitors

PepsiCo (NASDAQ:PEP) and Diageo (NYSE:DEO) 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, community ranking, profitability, earnings, dividends, institutional ownership, media sentiment, analyst recommendations and valuation.

Does the media refer more to PEP or DEO?

In the previous week, PepsiCo had 50 more articles in the media than Diageo. MarketBeat recorded 63 mentions for PepsiCo and 13 mentions for Diageo. PepsiCo's average media sentiment score of 1.14 beat Diageo's score of 1.13 indicating that PepsiCo is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
PepsiCo	48 Very Positive mention(s)	5 Positive mention(s)	7 Neutral mention(s)	2 Negative mention(s)	0 Very Negative mention(s)	Positive
Diageo	9 Very Positive mention(s)	0 Positive mention(s)	2 Neutral mention(s)	1 Negative mention(s)	0 Very Negative mention(s)	Positive

Do analysts prefer PEP or DEO?

PepsiCo presently has a consensus price target of $183.92, suggesting a potential upside of 15.95%. Given PepsiCo's stronger consensus rating and higher possible upside, equities research analysts clearly believe PepsiCo is more favorable than Diageo.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PepsiCo	1 Sell rating(s)	10 Hold rating(s)	5 Buy rating(s)	0 Strong Buy rating(s)	2.25
Diageo	3 Sell rating(s)	3 Hold rating(s)	2 Buy rating(s)	0 Strong Buy rating(s)	1.88

Does the MarketBeat Community believe in PEP or DEO?

PepsiCo received 815 more outperform votes than Diageo when rated by MarketBeat users. Likewise, 67.85% of users gave PepsiCo an outperform vote while only 59.12% of users gave Diageo an outperform vote.

Company	Underperform	Outperform
PepsiCo	Outperform Votes 1110 67.85%	Underperform Votes 526 32.15%
Diageo	Outperform Votes 295 59.12%	Underperform Votes 204 40.88%

Which has better valuation and earnings, PEP or DEO?

PepsiCo has higher revenue and earnings than Diageo.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PepsiCo	$91.47B	2.38	$9.07B	$6.78	23.40
Diageo	$20.27B	3.24	$3.87B	N/A	N/A

Is PEP or DEO more profitable?

PepsiCo has a net margin of 10.18% compared to Diageo's net margin of 0.00%. PepsiCo's return on equity of 57.32% beat Diageo's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
PepsiCo	10.18%	57.32%	11.02%
Diageo	N/A	N/A	N/A

Which has more risk and volatility, PEP or DEO?

PepsiCo has a beta of 0.53, meaning that its share price is 47% less volatile than the S&P 500. Comparatively, Diageo has a beta of 0.71, meaning that its share price is 29% less volatile than the S&P 500.

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

73.1% of PepsiCo shares are owned by institutional investors. Comparatively, 9.0% of Diageo shares are owned by institutional investors. 0.2% of PepsiCo shares are owned by 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 PEP or DEO a better dividend stock?

PepsiCo pays an annual dividend of $5.42 per share and has a dividend yield of 3.4%. Diageo pays an annual dividend of $5.02 per share and has a dividend yield of 4.2%. 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. PepsiCo has raised its dividend for 53 consecutive years.

Summary

PepsiCo beats Diageo on 15 of the 19 factors compared between the two stocks.