Coca-Cola (KO) Competitors

PepsiCo (NASDAQ:PEP) and Coca-Cola (NYSE:KO) are both large-cap consumer staples companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, dividends, institutional ownership, media sentiment, earnings, community ranking, valuation, risk and analyst recommendations.

Which has more volatility & risk, PEP or KO?

PepsiCo has a beta of 0.53, suggesting that its share price is 47% less volatile than the S&P 500. Comparatively, Coca-Cola has a beta of 0.54, suggesting that its share price is 46% less volatile than the S&P 500.

Does the media prefer PEP or KO?

In the previous week, PepsiCo and PepsiCo both had 17 articles in the media. Coca-Cola's average media sentiment score of 0.71 beat PepsiCo's score of 0.39 indicating that Coca-Cola is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
PepsiCo	7 Very Positive mention(s)	0 Positive mention(s)	7 Neutral mention(s)	1 Negative mention(s)	1 Very Negative mention(s)	Neutral
Coca-Cola	5 Very Positive mention(s)	4 Positive mention(s)	6 Neutral mention(s)	2 Negative mention(s)	0 Very Negative mention(s)	Positive

Is PEP or KO more profitable?

Coca-Cola has a net margin of 22.69% compared to PepsiCo's net margin of 7.48%. PepsiCo's return on equity of 53.68% beat Coca-Cola's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
PepsiCo	7.48%	53.68%	10.40%
Coca-Cola	22.69%	42.96%	11.65%

Do insiders and institutionals have more ownership in PEP or KO?

70.8% of PepsiCo shares are held by institutional investors. Comparatively, 68.7% of Coca-Cola shares are held by institutional investors. 0.2% of PepsiCo shares are held by company insiders. Comparatively, 1.0% of Coca-Cola shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Do analysts recommend PEP or KO?

PepsiCo currently has a consensus price target of $190.25, suggesting a potential upside of 3.63%. Coca-Cola has a consensus price target of $67.80, suggesting a potential upside of 12.51%. Given Coca-Cola's stronger consensus rating and higher probable upside, analysts plainly believe Coca-Cola is more favorable than PepsiCo.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PepsiCo	1 Sell rating(s)	6 Hold rating(s)	5 Buy rating(s)	0 Strong Buy rating(s)	2.33
Coca-Cola	0 Sell rating(s)	3 Hold rating(s)	9 Buy rating(s)	0 Strong Buy rating(s)	2.75

Which has higher valuation & earnings, PEP or KO?

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.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PepsiCo	$86.39 billion	2.93	$8.91 billion	$4.75	38.65
Coca-Cola	$43.00 billion	6.06	$9.54 billion	$2.28	26.43

Is PEP or KO a better dividend stock?

PepsiCo pays an annual dividend of $4.60 per share and has a dividend yield of 2.5%. Coca-Cola pays an annual dividend of $1.84 per share and has a dividend yield of 3.1%. PepsiCo pays out 96.8% 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 80.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. PepsiCo has increased its dividend for 52 consecutive years and Coca-Cola has increased its dividend for 62 consecutive years. Coca-Cola is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Does the MarketBeat Community believe in PEP or KO?

Coca-Cola received 78 more outperform votes than PepsiCo when rated by MarketBeat users. However, 69.01% of users gave PepsiCo an outperform vote while only 67.76% of users gave Coca-Cola an outperform vote.

Company	Underperform	Outperform
PepsiCo	Outperform Votes 1078 69.01%	Underperform Votes 484 30.99%
Coca-Cola	Outperform Votes 1156 67.76%	Underperform Votes 550 32.24%

Summary

Coca-Cola beats PepsiCo on 14 of the 20 factors compared between the two stocks.