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 superior business? We will contrast the two companies based on the strength of their profitability, dividends, analyst recommendations, earnings, risk, valuation, institutional ownership and media sentiment.

Is KDP or PEP more profitable?

Keurig Dr Pepper has a net margin of 9.69% 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	9.69%	10.86%	5.03%
PepsiCo	8.23%	57.81%	10.63%

Which has more volatility and risk, KDP or PEP?

Keurig Dr Pepper has a beta of 0.47, suggesting that its share price is 53% less volatile than the S&P 500. Comparatively, PepsiCo has a beta of 0.45, suggesting that its share 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 held by institutional investors. Comparatively, 73.1% of PepsiCo shares are held by institutional investors. 0.4% of Keurig Dr Pepper shares are held by company insiders. Comparatively, 0.1% of PepsiCo shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Does the media refer more to KDP or PEP?

In the previous week, PepsiCo had 133 more articles in the media than Keurig Dr Pepper. MarketBeat recorded 155 mentions for PepsiCo and 22 mentions for Keurig Dr Pepper. Keurig Dr Pepper's average media sentiment score of 0.93 beat PepsiCo's score of 0.80 indicating that Keurig Dr Pepper is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Keurig Dr Pepper	13 Very Positive mention(s)	1 Positive mention(s)	4 Neutral mention(s)	1 Negative mention(s)	0 Very Negative mention(s)	Positive
PepsiCo	78 Very Positive mention(s)	27 Positive mention(s)	31 Neutral mention(s)	10 Negative mention(s)	3 Very Negative mention(s)	Positive

Which has better earnings & valuation, KDP or PEP?

PepsiCo has higher revenue and earnings than Keurig Dr Pepper. PepsiCo is trading at a lower price-to-earnings ratio than Keurig Dr Pepper, 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	2.97	$1.44B	$1.10	30.49
PepsiCo	$91.85B	2.14	$9.58B	$6.80	21.06

Do analysts rate KDP or PEP?

Keurig Dr Pepper currently has a consensus target price of $39.62, suggesting a potential upside of 18.11%. PepsiCo has a consensus target price of $157.93, suggesting a potential upside of 10.26%. Given Keurig Dr Pepper's stronger consensus rating and higher probable upside, research analysts plainly 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)	2 Hold rating(s)	12 Buy rating(s)	1 Strong Buy rating(s)	2.93
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 2.7%. PepsiCo pays an annual dividend of $5.69 per share and has a dividend yield of 4.0%. Keurig Dr Pepper pays out 83.6% 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 83.7% 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.

Summary

Keurig Dr Pepper beats PepsiCo on 12 of the 20 factors compared between the two stocks.