Procter & Gamble (PG) Competitors

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

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

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

Does the media prefer PG or PEP?

In the previous week, PepsiCo had 29 more articles in the media than Procter & Gamble. MarketBeat recorded 112 mentions for PepsiCo and 83 mentions for Procter & Gamble. Procter & Gamble's average media sentiment score of 1.31 beat PepsiCo's score of 0.93 indicating that Procter & Gamble is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Procter & Gamble	59 Very Positive mention(s)	4 Positive mention(s)	12 Neutral mention(s)	4 Negative mention(s)	2 Very Negative mention(s)	Positive
PepsiCo	64 Very Positive mention(s)	9 Positive mention(s)	23 Neutral mention(s)	8 Negative mention(s)	3 Very Negative mention(s)	Positive

Do analysts prefer PG or PEP?

Procter & Gamble presently has a consensus price target of $177.25, indicating a potential upside of 15.87%. PepsiCo has a consensus price target of $158.00, indicating a potential upside of 17.81%. Given PepsiCo's higher probable upside, analysts plainly believe PepsiCo is more favorable than Procter & Gamble.

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

Which has higher earnings and valuation, PG or PEP?

Procter & Gamble has higher earnings, but lower revenue 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
Procter & Gamble	$84.04B	4.27	$14.88B	$6.30	24.28
PepsiCo	$91.52B	2.01	$9.58B	$6.80	19.72

Is PG or PEP 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
Procter & Gamble	18.46%	32.67%	13.45%
PepsiCo	10.24%	58.28%	11.02%

Which has more volatility & risk, PG or PEP?

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

Is PG or PEP a better dividend stock?

Procter & Gamble pays an annual dividend of $4.23 per share and has a dividend yield of 2.8%. PepsiCo pays an annual dividend of $5.69 per share and has a dividend yield of 4.2%. Procter & Gamble pays out 67.1% of its earnings in the form of a dividend. 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 has increased its dividend for 70 consecutive years and PepsiCo has increased its dividend for 54 consecutive years.

Summary

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