COST vs. PEP: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at COST and PEP, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | COST | PEP |
|---|---|---|
| Company Name | Costco Wholesale Corporation | PepsiCo, Inc. |
| Country | United States | United States |
| GICS Sector | Consumer Staples | Consumer Staples |
| GICS Industry | Consumer Staples Distribution & Retail | Beverages |
| Market Capitalization | 407.05 billion USD | 202.12 billion USD |
| Exchange | NasdaqGS | NasdaqGS |
| Listing Date | July 9, 1986 | June 1, 1972 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of COST 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.
Historical Performance at a Glance
| Symbol | COST | PEP |
|---|---|---|
| 5-Day Price Return | 0.81% | 2.26% |
| 13-Week Price Return | -5.05% | -3.03% |
| 26-Week Price Return | -7.61% | 11.93% |
| 52-Week Price Return | -1.15% | -11.47% |
| Month-to-Date Return | 1.27% | -0.16% |
| Year-to-Date Return | 0.73% | -4.08% |
| 10-Day Avg. Volume | 2.48M | 7.03M |
| 3-Month Avg. Volume | 2.31M | 7.98M |
| 3-Month Volatility | 17.62% | 20.24% |
| Beta | 1.00 | 0.42 |
Profitability
Return on Equity (TTM)
COST
30.47%
Consumer Staples Distribution & Retail Industry
- Max
- 38.03%
- Q3
- 20.64%
- Median
- 13.48%
- Q1
- 6.46%
- Min
- -9.87%
In the upper quartile for the Consumer Staples Distribution & Retail industry, COST’s Return on Equity of 30.47% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
PEP
38.92%
Beverages Industry
- Max
- 47.01%
- Q3
- 22.97%
- Median
- 10.24%
- Q1
- 6.33%
- Min
- -16.74%
In the upper quartile for the Beverages industry, PEP’s Return on Equity of 38.92% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
Net Profit Margin (TTM)
COST
2.94%
Consumer Staples Distribution & Retail Industry
- Max
- 6.41%
- Q3
- 3.85%
- Median
- 2.53%
- Q1
- 1.66%
- Min
- -0.70%
COST’s Net Profit Margin of 2.94% is aligned with the median group of its peers in the Consumer Staples Distribution & Retail industry. This indicates its ability to convert revenue into profit is typical for the sector.
PEP
7.82%
Beverages Industry
- Max
- 21.65%
- Q3
- 12.41%
- Median
- 8.66%
- Q1
- 5.10%
- Min
- -5.72%
PEP’s Net Profit Margin of 7.82% 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.
Operating Profit Margin (TTM)
COST
3.77%
Consumer Staples Distribution & Retail Industry
- Max
- 9.42%
- Q3
- 5.53%
- Median
- 3.90%
- Q1
- 2.53%
- Min
- -0.11%
COST’s Operating Profit Margin of 3.77% is around the midpoint for the Consumer Staples Distribution & Retail industry, indicating that its efficiency in managing core business operations is typical for the sector.
PEP
10.73%
Beverages Industry
- Max
- 31.42%
- Q3
- 20.65%
- Median
- 13.47%
- Q1
- 9.66%
- Min
- 2.33%
PEP’s Operating Profit Margin of 10.73% is around the midpoint for the Beverages industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | COST | PEP |
|---|---|---|
| Return on Equity (TTM) | 30.47% | 38.92% |
| Return on Assets (TTM) | 10.83% | 6.99% |
| Net Profit Margin (TTM) | 2.94% | 7.82% |
| Operating Profit Margin (TTM) | 3.77% | 10.73% |
| Gross Profit Margin (TTM) | 12.84% | 54.50% |
Financial Strength
Current Ratio (MRQ)
COST
1.03
Consumer Staples Distribution & Retail Industry
- Max
- 1.76
- Q3
- 1.31
- Median
- 0.99
- Q1
- 0.81
- Min
- 0.52
COST’s Current Ratio of 1.03 aligns with the median group of the Consumer Staples Distribution & Retail industry, indicating that its short-term liquidity is in line with its sector peers.
PEP
0.91
Beverages Industry
- Max
- 3.43
- Q3
- 1.91
- Median
- 1.22
- Q1
- 0.83
- Min
- 0.55
PEP’s Current Ratio of 0.91 aligns with the median group of the Beverages industry, indicating that its short-term liquidity is in line with its sector peers.
Debt-to-Equity Ratio (MRQ)
COST
0.20
Consumer Staples Distribution & Retail Industry
- Max
- 3.58
- Q3
- 1.67
- Median
- 1.07
- Q1
- 0.30
- Min
- 0.00
Falling into the lower quartile for the Consumer Staples Distribution & Retail industry, COST’s Debt-to-Equity Ratio of 0.20 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.
PEP
2.62
Beverages Industry
- Max
- 2.14
- Q3
- 1.09
- Median
- 0.73
- Q1
- 0.35
- Min
- 0.00
With a Debt-to-Equity Ratio of 2.62, 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.
Interest Coverage Ratio (TTM)
COST
91.27
Consumer Staples Distribution & Retail Industry
- Max
- 24.36
- Q3
- 13.75
- Median
- 5.55
- Q1
- 2.86
- Min
- -5.51
With an Interest Coverage Ratio of 91.27, COST demonstrates a superior capacity to service its debt, placing it well above the typical range for the Consumer Staples Distribution & Retail industry. This stems from either robust earnings or a conservative debt load.
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.
Financial Strength at a Glance
| Symbol | COST | PEP |
|---|---|---|
| Current Ratio (MRQ) | 1.03 | 0.91 |
| Quick Ratio (MRQ) | 0.55 | 0.68 |
| Debt-to-Equity Ratio (MRQ) | 0.20 | 2.62 |
| Interest Coverage Ratio (TTM) | 91.27 | 13.98 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
COST
0.53%
Consumer Staples Distribution & Retail Industry
- Max
- 6.30%
- Q3
- 3.28%
- Median
- 1.64%
- Q1
- 0.00%
- Min
- 0.00%
COST’s Dividend Yield of 0.53% is consistent with its peers in the Consumer Staples Distribution & Retail industry, providing a dividend return that is standard for its sector.
PEP
3.75%
Beverages Industry
- Max
- 7.61%
- Q3
- 4.81%
- Median
- 3.32%
- Q1
- 2.18%
- Min
- 0.00%
PEP’s Dividend Yield of 3.75% is consistent with its peers in the Beverages industry, providing a dividend return that is standard for its sector.
Dividend Payout Ratio (TTM)
COST
34.59%
Consumer Staples Distribution & Retail Industry
- Max
- 188.48%
- Q3
- 100.66%
- Median
- 57.10%
- Q1
- 29.06%
- Min
- 0.00%
COST’s Dividend Payout Ratio of 34.59% is within the typical range for the Consumer Staples Distribution & Retail industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
PEP
104.55%
Beverages Industry
- Max
- 193.57%
- Q3
- 102.38%
- Median
- 72.98%
- Q1
- 39.04%
- Min
- 0.00%
PEP’s Dividend Payout Ratio of 104.55% is in the upper quartile for the Beverages industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.
Dividend at a Glance
| Symbol | COST | PEP |
|---|---|---|
| Dividend Yield (TTM) | 0.53% | 3.75% |
| Dividend Payout Ratio (TTM) | 34.59% | 104.55% |
Valuation
Price-to-Earnings Ratio (TTM)
COST
50.51
Consumer Staples Distribution & Retail Industry
- Max
- 50.51
- Q3
- 32.01
- Median
- 21.81
- Q1
- 16.98
- Min
- 4.41
A P/E Ratio of 50.51 places COST in the upper quartile for the Consumer Staples Distribution & Retail industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.
PEP
27.91
Beverages Industry
- Max
- 36.07
- Q3
- 23.27
- Median
- 18.39
- Q1
- 14.57
- Min
- 6.38
A P/E Ratio of 27.91 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.
Price-to-Sales Ratio (TTM)
COST
1.49
Consumer Staples Distribution & Retail Industry
- Max
- 1.80
- Q3
- 0.96
- Median
- 0.58
- Q1
- 0.38
- Min
- 0.06
COST’s P/S Ratio of 1.49 is in the upper echelon for the Consumer Staples Distribution & Retail industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.
PEP
2.18
Beverages Industry
- Max
- 4.25
- Q3
- 2.29
- Median
- 1.56
- Q1
- 0.91
- Min
- 0.38
PEP’s P/S Ratio of 2.18 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.
Price-to-Book Ratio (MRQ)
COST
14.34
Consumer Staples Distribution & Retail Industry
- Max
- 8.68
- Q3
- 4.65
- Median
- 2.72
- Q1
- 1.94
- Min
- 0.46
At 14.34, COST’s P/B Ratio is at an extreme premium to the Consumer Staples Distribution & Retail 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.
PEP
10.01
Beverages Industry
- Max
- 7.45
- Q3
- 4.03
- Median
- 2.20
- Q1
- 1.39
- Min
- 0.83
At 10.01, 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.
Valuation at a Glance
| Symbol | COST | PEP |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 50.51 | 27.91 |
| Price-to-Sales Ratio (TTM) | 1.49 | 2.18 |
| Price-to-Book Ratio (MRQ) | 14.34 | 10.01 |
| Price-to-Free Cash Flow Ratio (TTM) | 52.19 | 24.10 |