DEO vs. PEP: Diageo vs. PepsiCo Stock Comparison

November 11, 2026

How do Diageo (DEO) and PepsiCo (PEP) stack up? This page sets them side by side across company profile, performance and risk, profitability, growth, financial strength, dividends, and valuation, with selected fundamentals also measured against each stock's industry-group peers.

Company Profile

Diageo (DEO) and PepsiCo (PEP) both belong to the Beverages industry, though DEO is classified under Distillers & Vintners while PEP falls under Soft Drinks & Non-alcoholic Beverages.

PepsiCo (PEP) trades as ordinary local shares, while Diageo (DEO) trades as an ADR — compare with FX exposure, depositary-program fees, and dividend-withholding-tax differences in mind.

Company profile comparison for Diageo (DEO) and PepsiCo (PEP)
Profile Item	DEO	PEP
Name	Diageo plc Sponsored ADR	PepsiCo, Inc.
Country/Region	United Kingdom	United States
GICS Sector	Consumer Staples	Consumer Staples
GICS Industry Group	Food, Beverage & Tobacco	Food, Beverage & Tobacco
GICS Industry	Beverages	Beverages
GICS Sub-Industry	Distillers & Vintners	Soft Drinks & Non-alcoholic Beverages
Market Capitalization	55.56 billion USD	192.61 billion USD
Currency	USD	USD
Exchange	NYSE	Nasdaq
Listing Date	March 14, 1991	June 1, 1972
Security Type	ADR	Common Stock

Price Performance

Cumulative Growth

DEO

PEP

GSPC

Diageo (DEO) vs. PepsiCo (PEP), with S&P 500 (GSPC) for reference: Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Diageo (DEO) and PepsiCo (PEP). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Diageo (DEO) and PepsiCo (PEP). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Price performance metrics for Diageo (DEO) and PepsiCo (PEP)
Metric	DEO	PEP
Total Return (1Y)	13.51%	4.03%
Total Return (3Y, Annualized)	-11.57%	-1.40%
Total Return (5Y, Annualized)	-10.73%	0.55%

Risk Profile

Drawdown History

DEO

PEP

GSPC

Diageo (DEO) vs. PepsiCo (PEP), with S&P 500 (GSPC) for reference: Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for Diageo (DEO) and PepsiCo (PEP). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for Diageo (DEO) and PepsiCo (PEP)
Metric	DEO	PEP
Volatility (1Y, Annualized)	33.21%	21.68%
Beta (5Y)	0.52	0.30
Max Drawdown (5Y)	-63.41%	-30.32%
Avg. Volume (3M)	1.07M	8.86M

Risk-Adjusted Performance

Risk-Return Positioning

DEO and PEP are plotted by 1-year volatility (risk) and 1-year return. The dashed Capital Allocation Line runs from the risk-free rate through the shared industry median.

Risk-Adjusted Metrics

Risk-adjusted metrics for Diageo (DEO) and PepsiCo (PEP)
Metric	DEO	PEP
Sharpe Ratio (1Y)	0.28	-0.01
Sortino Ratio (1Y)	0.38	-0.02

Profitability

ROE (TTM)

PepsiCo (PEP) at 52.19% clears its industry range for ROE, a sharper capital-efficiency signal than Diageo (DEO) at 14.99%, which is closer to a typical peer reading.

DEO

Food, Beverage & Tobacco industry group

14.99%

Max: 32.02%
Q3: 16.61%
DEO: 14.99%
Median: 10.05%
Q1: 4.10%
Min: -10.50%

PEP

Food, Beverage & Tobacco industry group

52.19%

PEP: 52.19%
Max: 32.02%
Q3: 16.61%
Median: 10.05%
Q1: 4.10%
Min: -10.50%

Diageo (DEO) vs. PepsiCo (PEP): A comparison of their ROE against the Food, Beverage & Tobacco industry group benchmark.

Net Margin (TTM)

Both Diageo (DEO) at 8.84% and PepsiCo (PEP) at 11.09% keep about the typical share of revenue as profit for their industries — neither bottom line stands out from peers.

DEO

Food, Beverage & Tobacco industry group

8.84%

Max: 24.83%
Q3: 11.22%
DEO: 8.84%
Median: 5.94%
Q1: 2.05%
Min: -11.49%

PEP

Food, Beverage & Tobacco industry group

11.09%

Max: 24.83%
Q3: 11.22%
PEP: 11.09%
Median: 5.94%
Q1: 2.05%
Min: -11.49%

Diageo (DEO) vs. PepsiCo (PEP): A comparison of their net margin against the Food, Beverage & Tobacco industry group benchmark.

Operating Margin (TTM)

Diageo (DEO) at 27.04% operates in the top operating margin quartile, ahead of PepsiCo (PEP) at 16.88%, which runs around its industry’s norm.

DEO

Food, Beverage & Tobacco industry group

27.04%

Max: 34.91%
DEO: 27.04%
Q3: 17.57%
Median: 11.06%
Q1: 4.15%
Min: -15.06%

PEP

Food, Beverage & Tobacco industry group

16.88%

Max: 34.91%
Q3: 17.57%
PEP: 16.88%
Median: 11.06%
Q1: 4.15%
Min: -15.06%

Diageo (DEO) vs. PepsiCo (PEP): A comparison of their operating margin against the Food, Beverage & Tobacco industry group benchmark.

Profitability Metrics

Profitability metrics for Diageo (DEO) and PepsiCo (PEP)
Metric	DEO	PEP
ROE (TTM)	14.99%	52.19%
ROA (TTM)	7.48%	9.02%
Net Margin (TTM)	8.84%	11.09%
Operating Margin (TTM)	27.04%	16.88%
Gross Margin (TTM)	59.82%	54.33%

Growth

Revenue Growth

PepsiCo (PEP) at 2.25% is around its peer norm for revenue growth, while Diageo (DEO) at -2.97% drops into the bottom quartile, signaling weaker demand or pricing momentum.

Diageo (DEO) vs. PepsiCo (PEP): A comparison of their Revenue Growth across different time periods.

EPS Growth

Both Diageo (DEO) at -26.30% and PepsiCo (PEP) at -13.67% land near their industries' usual EPS growth ranges, so bottom-line momentum looks broadly in line with peers on both sides.

Diageo (DEO) vs. PepsiCo (PEP): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for Diageo (DEO) and PepsiCo (PEP)
Metric	DEO	PEP
Revenue Growth (YoY)	-2.97%	2.25%
Revenue Growth (3Y CAGR)	-1.50%	2.83%
EPS Growth (YoY)	-26.30%	-13.67%
EPS Growth (3Y CAGR)	-27.84%	-2.23%

Financial Strength

Current Ratio (MRQ)

Diageo (DEO) at 1.60 keeps current ratio within its industry’s typical mid-range, while PepsiCo (PEP) at 0.94 runs in the tighter-liquidity quartile — a thinner cushion against current liabilities for PEP.

DEO

Food, Beverage & Tobacco industry group

1.60

Max: 4.01
Q3: 2.35
DEO: 1.60
Median: 1.53
Q1: 1.02
Min: 0.33

PEP

Food, Beverage & Tobacco industry group

0.94

Max: 4.01
Q3: 2.35
Median: 1.53
Q1: 1.02
PEP: 0.94
Min: 0.33

Diageo (DEO) vs. PepsiCo (PEP): A comparison of their current ratio against the Food, Beverage & Tobacco industry group benchmark.

Debt / Equity (MRQ)

Both balance sheets lean debt-heavy versus peers, but PEP is more stretched: Diageo (DEO) at 1.71 sits in the higher-leverage quartile and PepsiCo (PEP) at 2.31 is above its industry benchmark range.

DEO

Food, Beverage & Tobacco industry group

1.71

Max: 2.19
DEO: 1.71
Q3: 1.11
Median: 0.68
Q1: 0.33
Min: 0.00

PEP

Food, Beverage & Tobacco industry group

2.31

PEP: 2.31
Max: 2.19
Q3: 1.11
Median: 0.68
Q1: 0.33
Min: 0.00

Diageo (DEO) vs. PepsiCo (PEP): A comparison of their debt-to-equity ratio against the Food, Beverage & Tobacco industry group benchmark.

Financial Strength Metrics

Financial strength metrics for Diageo (DEO) and PepsiCo (PEP)
Metric	DEO	PEP
Current Ratio (MRQ)	1.60	0.94
Debt / Equity (MRQ)	1.71	2.31
Net Debt / EBITDA	3.18	2.12

Dividends

Dividend Yield (TTM)

PepsiCo (PEP) at 4.07% delivers top-quartile income for its industry, while Diageo (DEO) at 0.50% pays a more typical yield — both are credible income propositions, PEP the richer one.

DEO

Food, Beverage & Tobacco industry group

0.50%

Max: 9.38%
Q3: 3.77%
Median: 1.76%
DEO: 0.50%
Q1: 0.00%
Min: 0.00%

PEP

Food, Beverage & Tobacco industry group

4.07%

Max: 9.38%
PEP: 4.07%
Q3: 3.77%
Median: 1.76%
Q1: 0.00%
Min: 0.00%

Diageo (DEO) vs. PepsiCo (PEP): A comparison of their dividend yield against the Food, Beverage & Tobacco industry group benchmark.

Dividend Payout Ratio (TTM)

Diageo (DEO) reports payout ratio above 100% at 106.52%, meaning dividends exceeded current-period earnings and sustainability needs extra context. Meanwhile PepsiCo (PEP) reports 73.02%, ranking against industry peers normally.

DEO

Food, Beverage & Tobacco industry group

106.52%

Max: 199.19%
DEO: 106.52%
Q3: 81.03%
Median: 41.52%
Q1: 0.00%
Min: 0.00%

PEP

Food, Beverage & Tobacco industry group

73.02%

Max: 199.19%
Q3: 81.03%
PEP: 73.02%
Median: 41.52%
Q1: 0.00%
Min: 0.00%

Diageo (DEO) vs. PepsiCo (PEP): A comparison of their payout ratio against the Food, Beverage & Tobacco industry group benchmark.

Dividend Metrics

Dividend metrics for Diageo (DEO) and PepsiCo (PEP)
Metric	DEO	PEP
Dividend Yield (TTM)	0.50%	4.07%
Dividend Payout Ratio (TTM)	106.52%	73.02%

Valuation

P/E Ratio (TTM)

PepsiCo (PEP) at 17.78 is near its industry’s usual P/E ratio, while Diageo (DEO) at 31.97 sits in the richer quartile — DEO needs stronger growth or earnings quality to justify the premium.

DEO

Food, Beverage & Tobacco industry group

31.97

Max: 52.52
DEO: 31.97
Q3: 30.78
Median: 18.76
Q1: 12.77
Min: 4.72

PEP

Food, Beverage & Tobacco industry group

17.78

Max: 52.52
Q3: 30.78
Median: 18.76
PEP: 17.78
Q1: 12.77
Min: 4.72

Diageo (DEO) vs. PepsiCo (PEP): A comparison of their P/E ratio against the Food, Beverage & Tobacco industry group benchmark.

P/S Ratio (TTM)

PepsiCo (PEP) at 1.96 is priced about in line with its industry on P/S ratio, while Diageo (DEO) at 2.83 sits in the pricier quartile — DEO costs more per dollar of sales.

DEO

Food, Beverage & Tobacco industry group

2.83

Max: 4.64
DEO: 2.83
Q3: 2.27
Median: 1.17
Q1: 0.52
Min: 0.00

PEP

Food, Beverage & Tobacco industry group

1.96

Max: 4.64
Q3: 2.27
PEP: 1.96
Median: 1.17
Q1: 0.52
Min: 0.00

Diageo (DEO) vs. PepsiCo (PEP): A comparison of their P/S ratio against the Food, Beverage & Tobacco industry group benchmark.

P/B Ratio (MRQ)

Measured against book value, both Diageo (DEO) at 91.95 and PepsiCo (PEP) at 8.65 look expensive — each P/B ratio sits above its industry’s benchmark range.

DEO

Food, Beverage & Tobacco industry group

91.95

DEO: 91.95
Max: 6.35
Q3: 3.07
Median: 1.58
Q1: 0.82
Min: 0.00

PEP

Food, Beverage & Tobacco industry group

8.65

PEP: 8.65
Max: 6.35
Q3: 3.07
Median: 1.58
Q1: 0.82
Min: 0.00

Diageo (DEO) vs. PepsiCo (PEP): A comparison of their P/B ratio against the Food, Beverage & Tobacco industry group benchmark.

Valuation Metrics

Valuation metrics for Diageo (DEO) and PepsiCo (PEP)
Metric	DEO	PEP
P/E Ratio (TTM)	31.97	17.78
P/S Ratio (TTM)	2.83	1.96
P/B Ratio (MRQ)	91.95	8.65
Free Cash Flow Yield (TTM)	4.62%	4.70%