Procter & Gamble (PG) Competitors

PepsiCo (NASDAQ:PEP) and Procter & Gamble (NYSE:PG) are both large-cap consumer staples companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, risk, dividends, earnings, media sentiment, analyst recommendations, institutional ownership and profitability.

Which has better valuation & earnings, PEP or PG?

Procter & Gamble has lower revenue, but higher earnings than PepsiCo. PepsiCo is trading at a lower price-to-earnings ratio than Procter & Gamble, 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	$91.85B	2.03	$9.58B	$6.80	19.96
Procter & Gamble	$83.93B	4.30	$14.88B	$6.30	24.43

Is PEP or PG more profitable?

Procter & Gamble has a net margin of 18.46% compared to PepsiCo's net margin of 10.24%. PepsiCo's return on equity of 58.28% beat Procter & Gamble's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
PepsiCo	10.24%	58.28%	11.02%
Procter & Gamble	18.46%	32.67%	13.45%

Is PEP or PG a better dividend stock?

PepsiCo pays an annual dividend of $5.69 per share and has a dividend yield of 4.2%. Procter & Gamble pays an annual dividend of $4.22 per share and has a dividend yield of 2.7%. 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. Procter & Gamble pays out 67.0% of its earnings in the form of a dividend. PepsiCo has raised its dividend for 54 consecutive years and Procter & Gamble has raised its dividend for 70 consecutive years.

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

73.1% of PepsiCo shares are held by institutional investors. Comparatively, 65.8% of Procter & Gamble shares are held by institutional investors. 0.1% of PepsiCo shares are held by company insiders. Comparatively, 0.2% of Procter & Gamble shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Does the media refer more to PEP or PG?

In the previous week, PepsiCo had 13 more articles in the media than Procter & Gamble. MarketBeat recorded 103 mentions for PepsiCo and 90 mentions for Procter & Gamble. Procter & Gamble's average media sentiment score of 1.39 beat PepsiCo's score of 0.97 indicating that Procter & Gamble is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
PepsiCo	65 Very Positive mention(s)	7 Positive mention(s)	17 Neutral mention(s)	8 Negative mention(s)	2 Very Negative mention(s)	Positive
Procter & Gamble	68 Very Positive mention(s)	6 Positive mention(s)	11 Neutral mention(s)	2 Negative mention(s)	1 Very Negative mention(s)	Positive

Do analysts recommend PEP or PG?

PepsiCo currently has a consensus target price of $158.19, suggesting a potential upside of 16.53%. Procter & Gamble has a consensus target price of $177.45, suggesting a potential upside of 15.31%. Given PepsiCo's higher possible upside, equities research analysts plainly believe PepsiCo is more favorable than Procter & Gamble.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PepsiCo	1 Sell rating(s)	14 Hold rating(s)	4 Buy rating(s)	0 Strong Buy rating(s)	2.16
Procter & Gamble	0 Sell rating(s)	8 Hold rating(s)	13 Buy rating(s)	2 Strong Buy rating(s)	2.74

Which has more risk & volatility, PEP or PG?

PepsiCo has a beta of 0.45, meaning that its stock price is 55% less volatile than the S&P 500. Comparatively, Procter & Gamble has a beta of 0.4, meaning that its stock price is 60% less volatile than the S&P 500.

Summary

Procter & Gamble beats PepsiCo on 12 of the 20 factors compared between the two stocks.