KO vs. PEP, DEO, PG, UL, BUD, MDLZ, MO, BTI, STZ, and KDP
Should you be buying Coca-Cola stock or one of its competitors? The main competitors of Coca-Cola include PepsiCo (PEP), Diageo (DEO), Procter & Gamble (PG), Unilever (UL), Anheuser-Busch InBev SA/NV (BUD), Mondelez International (MDLZ), 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.
Coca-Cola (NYSE:KO) 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 media sentiment, community ranking, risk, profitability, dividends, analyst recommendations, earnings, institutional ownership and valuation.
In the previous week, PepsiCo had 55 more articles in the media than Coca-Cola. MarketBeat recorded 95 mentions for PepsiCo and 40 mentions for Coca-Cola. Coca-Cola's average media sentiment score of 0.61 beat PepsiCo's score of 0.49 indicating that Coca-Cola is being referred to more favorably in the media.
Coca-Cola has a net margin of 23.42% 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 pays an annual dividend of $1.94 per share and has a dividend yield of 3.1%. PepsiCo pays an annual dividend of $5.06 per share and has a dividend yield of 2.9%. 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. PepsiCo pays out 76.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
70.3% of Coca-Cola shares are held by institutional investors. Comparatively, 73.1% of PepsiCo shares are held by institutional investors. 1.0% of Coca-Cola shares are held by insiders. Comparatively, 0.2% of PepsiCo shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Coca-Cola received 75 more outperform votes than PepsiCo when rated by MarketBeat users. However, 68.25% of users gave PepsiCo an outperform vote while only 67.65% of users gave Coca-Cola an outperform vote.
Coca-Cola has a beta of 0.59, indicating that its stock price is 41% less volatile than the S&P 500. Comparatively, PepsiCo has a beta of 0.53, indicating that its stock price is 47% less volatile than the S&P 500.
Coca-Cola currently has a consensus target price of $67.22, suggesting a potential upside of 8.88%. PepsiCo has a consensus target price of $187.42, suggesting a potential upside of 6.74%. Given Coca-Cola's stronger consensus rating and higher probable upside, equities analysts clearly believe Coca-Cola is more favorable than PepsiCo.
Coca-Cola has higher earnings, but lower revenue 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.
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 KO 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 NYSE 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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