PEP vs. KO, DEO, UL, BUD, MDLZ, PG, MO, BTI, STZ, and KDP
Should you be buying PepsiCo stock or one of its competitors? The main competitors of PepsiCo include Coca-Cola (KO), Diageo (DEO), Unilever (UL), Anheuser-Busch InBev SA/NV (BUD), Mondelez International (MDLZ), Procter & Gamble (PG), Altria Group (MO), British American Tobacco (BTI), Constellation Brands (STZ), and Keurig Dr Pepper (KDP). 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 better stock? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, profitability, earnings, media sentiment, valuation, risk, community ranking and dividends.
PepsiCo currently has a consensus target price of $187.33, suggesting a potential upside of 5.59%. Coca-Cola has a consensus target price of $67.22, suggesting a potential upside of 9.22%. Given Coca-Cola's stronger consensus rating and higher possible upside, analysts plainly believe Coca-Cola is more favorable than PepsiCo.
In the previous week, PepsiCo had 50 more articles in the media than Coca-Cola. MarketBeat recorded 87 mentions for PepsiCo and 37 mentions for Coca-Cola. Coca-Cola's average media sentiment score of 0.71 beat PepsiCo's score of 0.50 indicating that Coca-Cola is being referred to more favorably in the news media.
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.
Coca-Cola has a net margin of 23.42% compared to PepsiCo's net margin of 9.92%. PepsiCo's return on equity of 58.03% beat Coca-Cola's return on equity.
PepsiCo has a beta of 0.53, indicating that its stock price is 47% less volatile than the S&P 500. Comparatively, Coca-Cola has a beta of 0.59, indicating that its stock price is 41% 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. 0.1% of PepsiCo shares are owned by insiders. Comparatively, 1.0% of Coca-Cola shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Coca-Cola received 76 more outperform votes than PepsiCo when rated by MarketBeat users. However, 68.23% of users gave PepsiCo an outperform vote while only 67.65% of users gave Coca-Cola an outperform vote.
PepsiCo pays an annual dividend of $5.06 per share and has a dividend yield of 2.9%. Coca-Cola pays an annual dividend of $1.94 per share and has a dividend yield of 3.2%. PepsiCo pays out 77.0% 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 pays out 78.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Summary
Coca-Cola beats PepsiCo on 11 of the 19 factors compared between the two stocks.
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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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