KO vs. PEP: A Head-to-Head Stock Comparison
Here’s a clear look at KO and PEP, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | KO | PEP |
|---|---|---|
| Company Name | The Coca-Cola Company | PepsiCo, Inc. |
| Country | United States | United States |
| GICS Sector | Consumer Staples | Consumer Staples |
| GICS Industry Group | Food, Beverage & Tobacco | Food, Beverage & Tobacco |
| GICS Industry | Beverages | Beverages |
| GICS Sub-Industry | Soft Drinks & Non-alcoholic Beverages | Soft Drinks & Non-alcoholic Beverages |
| Market Capitalization | 338.43 billion USD | 204.23 billion USD |
| Currency | USD | USD |
| Exchange | NYSE | NasdaqGS |
| Listing Date | January 2, 1962 | June 1, 1972 |
| Security Type | Common Stock | Common Stock |
KO’s market capitalization (338.43 billion USD) is substantially larger than PEP’s (204.23 billion USD), indicating a significant difference in their market valuations.
Historical Performance
This chart compares the performance of KO 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 | KO | PEP |
|---|---|---|
| 5-Day Price Return | 0.23% | -3.63% |
| 13-Week Price Return | -0.47% | -12.36% |
| 26-Week Price Return | 15.73% | 4.05% |
| 52-Week Price Return | 11.54% | 14.54% |
| Month-to-Date Return | -0.13% | -5.73% |
| Year-to-Date Return | 12.52% | 4.10% |
| 10-Day Avg. Volume | 15.51M | 5.53M |
| 3-Month Avg. Volume | 16.93M | 7.32M |
| 3-Month Volatility | 17.24% | 20.26% |
| Beta | 0.37 | 0.39 |
With betas of 0.37 for KO and 0.39 for PEP, both stocks show similar sensitivity to overall market movements.
Profitability
Return on Equity (TTM)
KO
43.62%
Beverages Industry
- Max
- 43.89%
- Q3
- 25.65%
- Median
- 19.93%
- Q1
- 12.01%
- Min
- -7.30%
In the upper quartile for the Beverages industry, KO’s Return on Equity of 43.62% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
PEP
43.89%
Beverages Industry
- Max
- 43.89%
- Q3
- 25.65%
- Median
- 19.93%
- Q1
- 12.01%
- Min
- -7.30%
In the upper quartile for the Beverages industry, PEP’s Return on Equity of 43.89% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
Net Profit Margin (TTM)
KO
27.80%
Beverages Industry
- Max
- 27.80%
- Q3
- 18.46%
- Median
- 11.53%
- Q1
- 8.15%
- Min
- -3.15%
A Net Profit Margin of 27.80% places KO in the upper quartile for the Beverages industry, signifying strong profitability and more effective cost management than most of its peers.
PEP
9.15%
Beverages Industry
- Max
- 27.80%
- Q3
- 18.46%
- Median
- 11.53%
- Q1
- 8.15%
- Min
- -3.15%
PEP’s Net Profit Margin of 9.15% 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)
KO
30.01%
Beverages Industry
- Max
- 30.01%
- Q3
- 28.39%
- Median
- 20.83%
- Q1
- 12.41%
- Min
- -4.08%
An Operating Profit Margin of 30.01% places KO 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
12.41%
Beverages Industry
- Max
- 30.01%
- Q3
- 28.39%
- Median
- 20.83%
- Q1
- 12.41%
- Min
- -4.08%
PEP’s Operating Profit Margin of 12.41% 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 | KO | PEP |
|---|---|---|
| Return on Equity (TTM) | 43.62% | 43.89% |
| Return on Assets (TTM) | 13.07% | 8.12% |
| Net Profit Margin (TTM) | 27.80% | 9.15% |
| Operating Profit Margin (TTM) | 30.01% | 12.41% |
| Gross Profit Margin (TTM) | 61.74% | 54.38% |
Financial Strength
Current Ratio (MRQ)
KO
1.36
Beverages Industry
- Max
- 3.70
- Q3
- 2.31
- Median
- 1.16
- Q1
- 0.93
- Min
- 0.54
KO’s Current Ratio of 1.36 aligns with the median group of the Beverages industry, indicating that its short-term liquidity is in line with its sector peers.
PEP
0.90
Beverages Industry
- Max
- 3.70
- Q3
- 2.31
- Median
- 1.16
- Q1
- 0.93
- Min
- 0.54
PEP’s Current Ratio of 0.90 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.
Debt-to-Equity Ratio (MRQ)
KO
1.31
Beverages Industry
- Max
- 2.03
- Q3
- 1.31
- Median
- 0.84
- Q1
- 0.57
- Min
- 0.00
KO’s Debt-to-Equity Ratio of 1.31 is typical for the Beverages industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
PEP
2.47
Beverages Industry
- Max
- 2.03
- Q3
- 1.31
- Median
- 0.84
- Q1
- 0.57
- Min
- 0.00
With a Debt-to-Equity Ratio of 2.47, 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)
KO
67.13
Beverages Industry
- Max
- 67.13
- Q3
- 50.14
- Median
- 11.78
- Q1
- 7.99
- Min
- -10.77
KO’s Interest Coverage Ratio of 67.13 is in the upper quartile for the Beverages industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.
PEP
10.17
Beverages Industry
- Max
- 67.13
- Q3
- 50.14
- Median
- 11.78
- Q1
- 7.99
- Min
- -10.77
PEP’s Interest Coverage Ratio of 10.17 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 | KO | PEP |
|---|---|---|
| Current Ratio (MRQ) | 1.36 | 0.90 |
| Quick Ratio (MRQ) | 1.01 | 0.67 |
| Debt-to-Equity Ratio (MRQ) | 1.31 | 2.47 |
| Interest Coverage Ratio (TTM) | 67.13 | 10.17 |
Growth
Revenue Growth
Revenue Growth at a Glance
| Symbol | KO | PEP |
|---|---|---|
| Revenue Growth (MRQ vs Prior YoY) | 12.07% | 8.50% |
| Revenue Growth (TTM vs Prior YoY) | 5.11% | 4.29% |
| 3-Year Revenue CAGR | 3.69% | 2.83% |
| 5-Year Revenue CAGR | 7.75% | 5.94% |
EPS Growth
EPS Growth at a Glance
| Symbol | KO | PEP |
|---|---|---|
| EPS Growth (MRQ vs Prior YoY) | 17.81% | 27.35% |
| EPS Growth (TTM vs Prior YoY) | 27.18% | -6.44% |
| 3-Year EPS CAGR | 11.48% | -2.24% |
| 5-Year EPS CAGR | 11.14% | 3.25% |
Dividend
Dividend Yield (TTM)
KO
3.27%
Beverages Industry
- Max
- 4.93%
- Q3
- 4.20%
- Median
- 3.27%
- Q1
- 2.61%
- Min
- 0.72%
KO’s Dividend Yield of 3.27% is consistent with its peers in the Beverages industry, providing a dividend return that is standard for its sector.
PEP
3.78%
Beverages Industry
- Max
- 4.93%
- Q3
- 4.20%
- Median
- 3.27%
- Q1
- 2.61%
- Min
- 0.72%
PEP’s Dividend Yield of 3.78% is consistent with its peers in the Beverages industry, providing a dividend return that is standard for its sector.
Dividend Payout Ratio (TTM)
KO
80.07%
Beverages Industry
- Max
- 131.99%
- Q3
- 95.28%
- Median
- 68.23%
- Q1
- 42.43%
- Min
- 0.00%
KO’s Dividend Payout Ratio of 80.07% is within the typical range for the Beverages industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
PEP
88.42%
Beverages Industry
- Max
- 131.99%
- Q3
- 95.28%
- Median
- 68.23%
- Q1
- 42.43%
- Min
- 0.00%
PEP’s Dividend Payout Ratio of 88.42% is within the typical range for the Beverages industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
Dividend at a Glance
| Symbol | KO | PEP |
|---|---|---|
| Dividend Yield (TTM) | 3.27% | 3.78% |
| Dividend Payout Ratio (TTM) | 80.07% | 88.42% |
Valuation
Price-to-Earnings Ratio (TTM)
KO
24.52
Beverages Industry
- Max
- 24.52
- Q3
- 22.62
- Median
- 19.34
- Q1
- 16.15
- Min
- 14.81
A P/E Ratio of 24.52 places KO 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.
PEP
23.39
Beverages Industry
- Max
- 24.52
- Q3
- 22.62
- Median
- 19.34
- Q1
- 16.15
- Min
- 14.81
A P/E Ratio of 23.39 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)
KO
6.82
Beverages Industry
- Max
- 3.18
- Q3
- 2.91
- Median
- 2.36
- Q1
- 1.43
- Min
- 0.73
With a P/S Ratio of 6.82, KO trades at a valuation that eclipses even the highest in the Beverages industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.
PEP
2.14
Beverages Industry
- Max
- 3.18
- Q3
- 2.91
- Median
- 2.36
- Q1
- 1.43
- Min
- 0.73
PEP’s P/S Ratio of 2.14 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)
KO
9.81
Beverages Industry
- Max
- 9.81
- Q3
- 5.47
- Median
- 3.36
- Q1
- 2.48
- Min
- 0.76
KO’s P/B Ratio of 9.81 is in the upper tier for the Beverages industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.
PEP
9.65
Beverages Industry
- Max
- 9.81
- Q3
- 5.47
- Median
- 3.36
- Q1
- 2.48
- Min
- 0.76
PEP’s P/B Ratio of 9.65 is in the upper tier for the Beverages industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.
Valuation at a Glance
| Symbol | KO | PEP |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 24.52 | 23.39 |
| Price-to-Sales Ratio (TTM) | 6.82 | 2.14 |
| Price-to-Book Ratio (MRQ) | 9.81 | 9.65 |
| Price-to-Free Cash Flow Ratio (TTM) | 26.74 | 22.09 |