Keurig Dr Pepper (KDP) Competitors

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

Does the media refer more to KDP or PEP?

In the previous week, Keurig Dr Pepper had 9 more articles in the media than PepsiCo. MarketBeat recorded 64 mentions for Keurig Dr Pepper and 55 mentions for PepsiCo. PepsiCo's average media sentiment score of 1.25 beat Keurig Dr Pepper's score of 0.62 indicating that PepsiCo is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Keurig Dr Pepper	27 Very Positive mention(s)	4 Positive mention(s)	18 Neutral mention(s)	7 Negative mention(s)	1 Very Negative mention(s)	Positive
PepsiCo	41 Very Positive mention(s)	3 Positive mention(s)	8 Neutral mention(s)	1 Negative mention(s)	1 Very Negative mention(s)	Positive

Do analysts prefer KDP or PEP?

Keurig Dr Pepper presently has a consensus price target of $38.38, indicating a potential upside of 29.57%. PepsiCo has a consensus price target of $158.73, indicating a potential upside of 8.42%. Given Keurig Dr Pepper's stronger consensus rating and higher possible upside, analysts clearly believe Keurig Dr Pepper is more favorable than PepsiCo.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Keurig Dr Pepper	0 Sell rating(s)	4 Hold rating(s)	11 Buy rating(s)	0 Strong Buy rating(s)	2.73
PepsiCo	1 Sell rating(s)	14 Hold rating(s)	4 Buy rating(s)	0 Strong Buy rating(s)	2.16

Is KDP or PEP a better dividend stock?

Keurig Dr Pepper pays an annual dividend of $0.92 per share and has a dividend yield of 3.1%. PepsiCo pays an annual dividend of $5.69 per share and has a dividend yield of 3.9%. Keurig Dr Pepper pays out 82.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. PepsiCo pays out 103.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Keurig Dr Pepper has raised its dividend for 4 consecutive years and PepsiCo has raised its dividend for 54 consecutive years. PepsiCo is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Which has stronger earnings & valuation, KDP or PEP?

PepsiCo has higher revenue and earnings than Keurig Dr Pepper. Keurig Dr Pepper 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
Keurig Dr Pepper	$15.35B	2.62	$1.44B	$1.12	26.45
PepsiCo	$91.85B	2.18	$9.58B	$5.49	26.67

Is KDP or PEP more profitable?

Keurig Dr Pepper has a net margin of 9.75% compared to PepsiCo's net margin of 8.23%. PepsiCo's return on equity of 57.81% beat Keurig Dr Pepper's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Keurig Dr Pepper	9.75%	11.05%	5.09%
PepsiCo	8.23%	57.81%	10.63%

Which has more volatility and risk, KDP or PEP?

Keurig Dr Pepper has a beta of 0.45, suggesting that its stock price is 55% less volatile than the S&P 500. Comparatively, PepsiCo has a beta of 0.45, suggesting that its stock price is 55% less volatile than the S&P 500.

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

94.0% of Keurig Dr Pepper shares are owned by institutional investors. Comparatively, 73.1% of PepsiCo shares are owned by institutional investors. 0.4% of Keurig Dr Pepper shares are owned by insiders. Comparatively, 0.1% of PepsiCo shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Keurig Dr Pepper and PepsiCo tied by winning 9 of the 18 factors compared between the two stocks.