Seek Returns logo

BG vs. PEP: A Head-to-Head Stock Comparison

Updated on

Here’s a clear look at BG and PEP, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

SymbolBGPEP
Company NameBunge Global SAPepsiCo, Inc.
CountryUnited StatesUnited States
GICS SectorConsumer StaplesConsumer Staples
GICS IndustryFood ProductsBeverages
Market Capitalization16.83 billion USD191.26 billion USD
ExchangeNYSENasdaqGS
Listing DateAugust 2, 2001June 1, 1972
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of BG and PEP by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period. Data is adjusted for dividends and splits.

BG vs. PEP: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolBGPEP
5-Day Price Return3.54%-0.53%
13-Week Price Return12.40%3.90%
26-Week Price Return8.07%-6.66%
52-Week Price Return-12.97%-17.11%
Month-to-Date Return3.54%-0.53%
Year-to-Date Return8.19%-8.13%
10-Day Avg. Volume1.63M6.77M
3-Month Avg. Volume1.97M9.01M
3-Month Volatility31.88%24.10%
Beta0.790.43

Profitability

Return on Equity (TTM)

BG

12.96%

Food Products Industry

Max
30.51%
Q3
16.54%
Median
10.46%
Q1
6.76%
Min
-2.18%

BG’s Return on Equity of 12.96% is on par with the norm for the Food Products industry, indicating its profitability relative to shareholder equity is typical for the sector.

PEP

40.65%

Beverages Industry

Max
45.90%
Q3
22.74%
Median
10.10%
Q1
6.35%
Min
-13.21%

In the upper quartile for the Beverages industry, PEP’s Return on Equity of 40.65% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

BG vs. PEP: A comparison of their Return on Equity (TTM) against their respective Food Products and Beverages industry benchmarks.

Net Profit Margin (TTM)

BG

2.71%

Food Products Industry

Max
18.44%
Q3
10.21%
Median
6.29%
Q1
3.53%
Min
-0.80%

Falling into the lower quartile for the Food Products industry, BG’s Net Profit Margin of 2.71% indicates weaker profitability. This means the company retains a smaller portion of each dollar in sales as profit compared to its competitors.

PEP

8.23%

Beverages Industry

Max
21.38%
Q3
12.24%
Median
8.43%
Q1
5.97%
Min
0.65%

PEP’s Net Profit Margin of 8.23% is aligned with the median group of its peers in the Beverages industry. This indicates its ability to convert revenue into profit is typical for the sector.

BG vs. PEP: A comparison of their Net Profit Margin (TTM) against their respective Food Products and Beverages industry benchmarks.

Operating Profit Margin (TTM)

BG

3.17%

Food Products Industry

Max
24.83%
Q3
14.29%
Median
9.64%
Q1
6.11%
Min
0.08%

BG’s Operating Profit Margin of 3.17% is in the lower quartile for the Food Products industry. This indicates weaker profitability from core operations, which may stem from inefficiencies or competitive pressures on pricing.

PEP

11.11%

Beverages Industry

Max
29.32%
Q3
20.15%
Median
13.14%
Q1
10.74%
Min
1.24%

PEP’s Operating Profit Margin of 11.11% is around the midpoint for the Beverages industry, indicating that its efficiency in managing core business operations is typical for the sector.

BG vs. PEP: A comparison of their Operating Profit Margin (TTM) against their respective Food Products and Beverages industry benchmarks.

Profitability at a Glance

SymbolBGPEP
Return on Equity (TTM)12.96%40.65%
Return on Assets (TTM)5.10%7.42%
Net Profit Margin (TTM)2.71%8.23%
Operating Profit Margin (TTM)3.17%11.11%
Gross Profit Margin (TTM)6.27%54.92%

Financial Strength

Current Ratio (MRQ)

BG

2.07

Food Products Industry

Max
3.99
Q3
2.39
Median
1.62
Q1
1.23
Min
0.57

BG’s Current Ratio of 2.07 aligns with the median group of the Food Products industry, indicating that its short-term liquidity is in line with its sector peers.

PEP

0.78

Beverages Industry

Max
3.52
Q3
2.00
Median
1.22
Q1
0.87
Min
0.55

PEP’s Current Ratio of 0.78 falls into the lower quartile for the Beverages industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

BG vs. PEP: A comparison of their Current Ratio (MRQ) against their respective Food Products and Beverages industry benchmarks.

Debt-to-Equity Ratio (MRQ)

BG

1.04

Food Products Industry

Max
1.92
Q3
0.92
Median
0.51
Q1
0.25
Min
0.00

BG’s leverage is in the upper quartile of the Food Products industry, with a Debt-to-Equity Ratio of 1.04. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.

PEP

2.79

Beverages Industry

Max
2.14
Q3
1.14
Median
0.74
Q1
0.37
Min
0.00

With a Debt-to-Equity Ratio of 2.79, PEP operates with exceptionally high leverage compared to the Beverages industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.

BG vs. PEP: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Food Products and Beverages industry benchmarks.

Interest Coverage Ratio (TTM)

BG

3.58

Food Products Industry

Max
65.06
Q3
29.45
Median
9.43
Q1
4.70
Min
-1.69

In the lower quartile for the Food Products industry, BG’s Interest Coverage Ratio of 3.58 indicates a tighter cushion for servicing debt, suggesting less financial flexibility than many of its competitors.

PEP

13.98

Beverages Industry

Max
78.96
Q3
42.68
Median
10.96
Q1
3.86
Min
0.81

PEP’s Interest Coverage Ratio of 13.98 is positioned comfortably within the norm for the Beverages industry, indicating a standard and healthy capacity to cover its interest payments.

BG vs. PEP: A comparison of their Interest Coverage Ratio (TTM) against their respective Food Products and Beverages industry benchmarks.

Financial Strength at a Glance

SymbolBGPEP
Current Ratio (MRQ)2.070.78
Quick Ratio (MRQ)1.220.56
Debt-to-Equity Ratio (MRQ)1.042.79
Interest Coverage Ratio (TTM)3.5813.98

Growth

Revenue Growth

BG vs. PEP: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

BG vs. PEP: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

BG

2.21%

Food Products Industry

Max
8.09%
Q3
4.48%
Median
2.69%
Q1
1.66%
Min
0.00%

BG’s Dividend Yield of 2.21% is consistent with its peers in the Food Products industry, providing a dividend return that is standard for its sector.

PEP

3.88%

Beverages Industry

Max
7.92%
Q3
4.37%
Median
3.32%
Q1
1.98%
Min
0.00%

PEP’s Dividend Yield of 3.88% is consistent with its peers in the Beverages industry, providing a dividend return that is standard for its sector.

BG vs. PEP: A comparison of their Dividend Yield (TTM) against their respective Food Products and Beverages industry benchmarks.

Dividend Payout Ratio (TTM)

BG

27.00%

Food Products Industry

Max
216.00%
Q3
112.15%
Median
72.83%
Q1
41.56%
Min
0.00%

BG’s Dividend Payout Ratio of 27.00% is in the lower quartile for the Food Products industry. This suggests a conservative dividend policy, with a strategic focus on reinvesting profits for future growth.

PEP

98.89%

Beverages Industry

Max
188.65%
Q3
104.55%
Median
72.60%
Q1
40.31%
Min
0.00%

PEP’s Dividend Payout Ratio of 98.89% is within the typical range for the Beverages industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

BG vs. PEP: A comparison of their Dividend Payout Ratio (TTM) against their respective Food Products and Beverages industry benchmarks.

Dividend at a Glance

SymbolBGPEP
Dividend Yield (TTM)2.21%3.88%
Dividend Payout Ratio (TTM)27.00%98.89%

Valuation

Price-to-Earnings Ratio (TTM)

BG

12.21

Food Products Industry

Max
41.70
Q3
24.61
Median
17.81
Q1
12.59
Min
3.07

In the lower quartile for the Food Products industry, BG’s P/E Ratio of 12.21 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.

PEP

25.49

Beverages Industry

Max
35.25
Q3
22.66
Median
17.17
Q1
13.65
Min
4.77

A P/E Ratio of 25.49 places PEP in the upper quartile for the Beverages industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.

BG vs. PEP: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Food Products and Beverages industry benchmarks.

Price-to-Sales Ratio (TTM)

BG

0.33

Food Products Industry

Max
3.33
Q3
1.74
Median
1.10
Q1
0.66
Min
0.11

In the lower quartile for the Food Products industry, BG’s P/S Ratio of 0.33 indicates its revenue is valued more conservatively than most of its peers. This could present a compelling opportunity if the market has overlooked its sales-generating capabilities.

PEP

2.10

Beverages Industry

Max
4.06
Q3
2.24
Median
1.34
Q1
0.86
Min
0.39

PEP’s P/S Ratio of 2.10 aligns with the market consensus for the Beverages industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

BG vs. PEP: A comparison of their Price-to-Sales Ratio (TTM) against their respective Food Products and Beverages industry benchmarks.

Price-to-Book Ratio (MRQ)

BG

0.99

Food Products Industry

Max
5.01
Q3
2.98
Median
1.93
Q1
1.28
Min
0.47

BG’s P/B Ratio of 0.99 is in the lower quartile for the Food Products industry. From a value investing perspective, this is favorable, as it suggests the stock is trading at a discount to its net asset value and may offer a greater margin of safety.

PEP

9.77

Beverages Industry

Max
6.90
Q3
4.23
Median
2.20
Q1
1.51
Min
0.69

At 9.77, PEP’s P/B Ratio is at an extreme premium to the Beverages industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.

BG vs. PEP: A comparison of their Price-to-Book Ratio (MRQ) against their respective Food Products and Beverages industry benchmarks.

Valuation at a Glance

SymbolBGPEP
Price-to-Earnings Ratio (TTM)12.2125.49
Price-to-Sales Ratio (TTM)0.332.10
Price-to-Book Ratio (MRQ)0.999.77
Price-to-Free Cash Flow Ratio (TTM)7.3322.27