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

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

Company Profile

SymbolPEPPG
Company NamePepsiCo, Inc.The Procter & Gamble Company
CountryUnited StatesUnited States
GICS SectorConsumer StaplesConsumer Staples
GICS Industry GroupFood, Beverage & TobaccoHousehold & Personal Products
GICS IndustryBeveragesHousehold Products
GICS Sub-IndustrySoft Drinks & Non-alcoholic BeveragesHousehold Products
Market Capitalization204.23 billion USD333.83 billion USD
CurrencyUSDUSD
ExchangeNasdaqGSNYSE
Listing DateJune 1, 1972January 2, 1962
Security TypeCommon StockCommon Stock

PG’s market capitalization (333.83 billion USD) is significantly greater than PEP’s (204.23 billion USD), highlighting its more substantial market valuation.

Historical Performance

This chart compares the performance of PEP and PG 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.

PEP
PG
Loading price history…
PEP vs. PG: Growth of a $10,000 investment over the past five years.

Historical Performance at a Glance

SymbolPEPPG
5-Day Price Return-3.63%-1.06%
13-Week Price Return-12.36%-9.93%
26-Week Price Return4.05%-3.15%
52-Week Price Return14.54%-9.07%
Month-to-Date Return-5.73%-2.54%
Year-to-Date Return4.10%0.03%
10-Day Avg. Volume5.53M8.28M
3-Month Avg. Volume7.32M10.67M
3-Month Volatility20.26%21.61%
Beta0.390.40

With betas of 0.39 for PEP and 0.40 for PG, both stocks show similar sensitivity to overall market movements.

Profitability

Return on Equity (TTM)

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.

PG

31.25%

Household Products Industry
Max
143.64%
Q3
143.64%
Median
31.25%
Q1
17.45%
Min
5.52%

PG’s Return on Equity of 31.25% is on par with the norm for the Household Products industry, indicating its profitability relative to shareholder equity is typical for the sector.

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

Net Profit Margin (TTM)

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.

PG

19.30%

Household Products Industry
Max
12.80%
Q3
12.57%
Median
11.18%
Q1
8.68%
Min
3.76%

PG’s Net Profit Margin of 19.30% is exceptionally high, placing it well beyond the typical range for the Household Products industry. This demonstrates outstanding operational efficiency and a strong competitive advantage in converting revenue into profit.

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

Operating Profit Margin (TTM)

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.

PG

23.58%

Household Products Industry
Max
17.30%
Q3
16.49%
Median
14.93%
Q1
13.62%
Min
13.62%

PG’s Operating Profit Margin of 23.58% is exceptionally high, placing it well above the typical range for the Household Products industry. This demonstrates outstanding efficiency in managing its core operations, which can be a result of strong pricing power or superior cost control.

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

Profitability at a Glance

SymbolPEPPG
Return on Equity (TTM)43.89%31.25%
Return on Assets (TTM)8.12%13.08%
Net Profit Margin (TTM)9.15%19.30%
Operating Profit Margin (TTM)12.41%23.58%
Gross Profit Margin (TTM)54.38%51.11%

Financial Strength

Current Ratio (MRQ)

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.

PG

0.72

Household Products Industry
Max
2.83
Q3
2.05
Median
1.22
Q1
0.84
Min
0.72

PG’s Current Ratio of 0.72 falls into the lower quartile for the Household Products industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

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

Debt-to-Equity Ratio (MRQ)

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.

PG

0.69

Household Products Industry
Max
7.75
Q3
7.75
Median
0.69
Q1
0.53
Min
0.30

PG’s Debt-to-Equity Ratio of 0.69 is typical for the Household Products industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

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

Interest Coverage Ratio (TTM)

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.

PG

47.04

Household Products Industry
Max
18.78
Q3
18.78
Median
9.84
Q1
5.57
Min
2.32

With an Interest Coverage Ratio of 47.04, PG demonstrates a superior capacity to service its debt, placing it well above the typical range for the Household Products industry. This stems from either robust earnings or a conservative debt load.

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

Financial Strength at a Glance

SymbolPEPPG
Current Ratio (MRQ)0.900.72
Quick Ratio (MRQ)0.670.47
Debt-to-Equity Ratio (MRQ)2.470.69
Interest Coverage Ratio (TTM)10.1747.04

Growth

Revenue Growth

PEP vs. PG: A comparison of their Revenue Growth across different time periods.

Revenue Growth at a Glance

SymbolPEPPG
Revenue Growth (MRQ vs Prior YoY)8.50%1.49%
Revenue Growth (TTM vs Prior YoY)4.29%1.08%
3-Year Revenue CAGR2.83%1.67%
5-Year Revenue CAGR5.94%3.50%

EPS Growth

PEP vs. PG: A comparison of their EPS Growth across different time periods.

EPS Growth at a Glance

SymbolPEPPG
EPS Growth (MRQ vs Prior YoY)27.35%-5.38%
EPS Growth (TTM vs Prior YoY)-6.44%7.54%
3-Year EPS CAGR-2.24%3.88%
5-Year EPS CAGR3.25%5.58%

Dividend

Dividend Yield (TTM)

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.

PG

3.03%

Household Products Industry
Max
7.12%
Q3
5.22%
Median
3.03%
Q1
2.50%
Min
1.35%

PG’s Dividend Yield of 3.03% is consistent with its peers in the Household Products industry, providing a dividend return that is standard for its sector.

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

Dividend Payout Ratio (TTM)

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.

PG

61.26%

Household Products Industry
Max
79.63%
Q3
65.09%
Median
61.26%
Q1
43.80%
Min
31.44%

PG’s Dividend Payout Ratio of 61.26% is within the typical range for the Household Products industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

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

Dividend at a Glance

SymbolPEPPG
Dividend Yield (TTM)3.78%3.03%
Dividend Payout Ratio (TTM)88.42%61.26%

Valuation

Price-to-Earnings Ratio (TTM)

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.

PG

20.24

Household Products Industry
Max
35.00
Q3
29.17
Median
17.50
Q1
14.50
Min
6.17

PG’s P/E Ratio of 20.24 is within the middle range for the Household Products 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 vs. PG: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Beverages and Household Products industry benchmarks.

Price-to-Sales Ratio (TTM)

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.

PG

3.91

Household Products Industry
Max
4.40
Q3
3.45
Median
1.93
Q1
1.20
Min
0.40

PG’s P/S Ratio of 3.91 is in the upper echelon for the Household Products 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 vs. PG: A comparison of their Price-to-Sales Ratio (TTM) against their respective Beverages and Household Products industry benchmarks.

Price-to-Book Ratio (MRQ)

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.

PG

6.31

Household Products Industry
Max
17.83
Q3
17.83
Median
6.49
Q1
5.28
Min
0.74

PG’s P/B Ratio of 6.31 is within the conventional range for the Household Products industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.

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

Valuation at a Glance

SymbolPEPPG
Price-to-Earnings Ratio (TTM)23.3920.24
Price-to-Sales Ratio (TTM)2.143.91
Price-to-Book Ratio (MRQ)9.656.31
Price-to-Free Cash Flow Ratio (TTM)22.0922.43