Seek Returns logo

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

Updated on

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

Company Profile

DEO trades as an American Depositary Receipt (ADR), offering U.S. investors a convenient way to access its foreign-listed shares. In contrast, PEP is a standard domestic listing.

SymbolDEOPEP
Company NameDiageo plcPepsiCo, Inc.
CountryUnited KingdomUnited States
GICS SectorConsumer StaplesConsumer Staples
GICS IndustryBeveragesBeverages
Market Capitalization61.65 billion USD204.47 billion USD
ExchangeNYSENasdaqGS
Listing DateMarch 14, 1991June 1, 1972
Security TypeADRCommon Stock

Historical Performance

This chart compares the performance of DEO 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.

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

Historical Performance at a Glance

SymbolDEOPEP
5-Day Price Return3.96%3.77%
13-Week Price Return-2.64%13.42%
26-Week Price Return-8.46%2.75%
52-Week Price Return-16.52%-12.87%
Month-to-Date Return11.28%8.29%
Year-to-Date Return-18.74%-1.78%
10-Day Avg. Volume4.78M7.26M
3-Month Avg. Volume3.52M9.38M
3-Month Volatility27.58%24.37%
Beta0.560.48

Profitability

Return on Equity (TTM)

DEO

35.39%

Beverages Industry

Max
49.46%
Q3
24.91%
Median
11.13%
Q1
5.27%
Min
-5.93%

In the upper quartile for the Beverages industry, DEO’s Return on Equity of 35.39% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

PEP

40.65%

Beverages Industry

Max
49.46%
Q3
24.91%
Median
11.13%
Q1
5.27%
Min
-5.93%

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.

DEO vs. PEP: A comparison of their Return on Equity (TTM) against the Beverages industry benchmark.

Net Profit Margin (TTM)

DEO

17.79%

Beverages Industry

Max
21.86%
Q3
12.24%
Median
8.70%
Q1
5.33%
Min
-4.40%

A Net Profit Margin of 17.79% places DEO in the upper quartile for the Beverages industry, signifying strong profitability and more effective cost management than most of its peers.

PEP

8.23%

Beverages Industry

Max
21.86%
Q3
12.24%
Median
8.70%
Q1
5.33%
Min
-4.40%

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.

DEO vs. PEP: A comparison of their Net Profit Margin (TTM) against the Beverages industry benchmark.

Operating Profit Margin (TTM)

DEO

28.58%

Beverages Industry

Max
29.32%
Q3
18.25%
Median
13.42%
Q1
10.58%
Min
0.71%

An Operating Profit Margin of 28.58% places DEO in the upper quartile for the Beverages industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

PEP

11.11%

Beverages Industry

Max
29.32%
Q3
18.25%
Median
13.42%
Q1
10.58%
Min
0.71%

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.

DEO vs. PEP: A comparison of their Operating Profit Margin (TTM) against the Beverages industry benchmark.

Profitability at a Glance

SymbolDEOPEP
Return on Equity (TTM)35.39%40.65%
Return on Assets (TTM)7.78%7.42%
Net Profit Margin (TTM)17.79%8.23%
Operating Profit Margin (TTM)28.58%11.11%
Gross Profit Margin (TTM)60.45%54.92%

Financial Strength

Current Ratio (MRQ)

DEO

1.60

Beverages Industry

Max
3.38
Q3
1.97
Median
1.21
Q1
0.86
Min
0.53

DEO’s Current Ratio of 1.60 aligns with the median group of the Beverages industry, indicating that its short-term liquidity is in line with its sector peers.

PEP

0.78

Beverages Industry

Max
3.38
Q3
1.97
Median
1.21
Q1
0.86
Min
0.53

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.

DEO vs. PEP: A comparison of their Current Ratio (MRQ) against the Beverages industry benchmark.

Debt-to-Equity Ratio (MRQ)

DEO

2.11

Beverages Industry

Max
2.11
Q3
1.23
Median
0.79
Q1
0.32
Min
0.00

DEO’s leverage is in the upper quartile of the Beverages industry, with a Debt-to-Equity Ratio of 2.11. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.

PEP

2.79

Beverages Industry

Max
2.11
Q3
1.23
Median
0.79
Q1
0.32
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.

DEO vs. PEP: A comparison of their Debt-to-Equity Ratio (MRQ) against the Beverages industry benchmark.

Interest Coverage Ratio (TTM)

DEO

13.11

Beverages Industry

Max
78.96
Q3
40.67
Median
9.62
Q1
3.59
Min
0.81

DEO’s Interest Coverage Ratio of 13.11 is positioned comfortably within the norm for the Beverages industry, indicating a standard and healthy capacity to cover its interest payments.

PEP

13.98

Beverages Industry

Max
78.96
Q3
40.67
Median
9.62
Q1
3.59
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.

DEO vs. PEP: A comparison of their Interest Coverage Ratio (TTM) against the Beverages industry benchmark.

Financial Strength at a Glance

SymbolDEOPEP
Current Ratio (MRQ)1.600.78
Quick Ratio (MRQ)0.670.56
Debt-to-Equity Ratio (MRQ)2.112.79
Interest Coverage Ratio (TTM)13.1113.98

Growth

Revenue Growth

DEO 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

DEO 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)

DEO

3.69%

Beverages Industry

Max
6.93%
Q3
4.51%
Median
3.09%
Q1
2.03%
Min
0.00%

DEO’s Dividend Yield of 3.69% is consistent with its peers in the Beverages industry, providing a dividend return that is standard for its sector.

PEP

3.67%

Beverages Industry

Max
6.93%
Q3
4.51%
Median
3.09%
Q1
2.03%
Min
0.00%

PEP’s Dividend Yield of 3.67% is consistent with its peers in the Beverages industry, providing a dividend return that is standard for its sector.

DEO vs. PEP: A comparison of their Dividend Yield (TTM) against the Beverages industry benchmark.

Dividend Payout Ratio (TTM)

DEO

63.78%

Beverages Industry

Max
143.36%
Q3
99.22%
Median
67.03%
Q1
40.31%
Min
0.00%

DEO’s Dividend Payout Ratio of 63.78% is within the typical range for the Beverages industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

PEP

98.89%

Beverages Industry

Max
143.36%
Q3
99.22%
Median
67.03%
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.

DEO vs. PEP: A comparison of their Dividend Payout Ratio (TTM) against the Beverages industry benchmark.

Dividend at a Glance

SymbolDEOPEP
Dividend Yield (TTM)3.69%3.67%
Dividend Payout Ratio (TTM)63.78%98.89%

Valuation

Price-to-Earnings Ratio (TTM)

DEO

17.30

Beverages Industry

Max
41.48
Q3
28.35
Median
19.09
Q1
15.36
Min
3.14

DEO’s P/E Ratio of 17.30 is within the middle range for the Beverages industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

PEP

26.96

Beverages Industry

Max
41.48
Q3
28.35
Median
19.09
Q1
15.36
Min
3.14

PEP’s P/E Ratio of 26.96 is within the middle range for the Beverages industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

DEO vs. PEP: A comparison of their Price-to-Earnings Ratio (TTM) against the Beverages industry benchmark.

Price-to-Sales Ratio (TTM)

DEO

3.08

Beverages Industry

Max
3.90
Q3
2.38
Median
1.54
Q1
0.84
Min
0.41

DEO’s P/S Ratio of 3.08 is in the upper echelon for the Beverages 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

2.22

Beverages Industry

Max
3.90
Q3
2.38
Median
1.54
Q1
0.84
Min
0.41

PEP’s P/S Ratio of 2.22 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.

DEO vs. PEP: A comparison of their Price-to-Sales Ratio (TTM) against the Beverages industry benchmark.

Price-to-Book Ratio (MRQ)

DEO

7.45

Beverages Industry

Max
6.29
Q3
3.58
Median
2.19
Q1
1.68
Min
0.91

At 7.45, DEO’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.

PEP

9.77

Beverages Industry

Max
6.29
Q3
3.58
Median
2.19
Q1
1.68
Min
0.91

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.

DEO vs. PEP: A comparison of their Price-to-Book Ratio (MRQ) against the Beverages industry benchmark.

Valuation at a Glance

SymbolDEOPEP
Price-to-Earnings Ratio (TTM)17.3026.96
Price-to-Sales Ratio (TTM)3.082.22
Price-to-Book Ratio (MRQ)7.459.77
Price-to-Free Cash Flow Ratio (TTM)23.0523.56