KO vs. PEP, DEO, PG, UL, BUD, MDLZ, MO, BTI, STZ, and KDP
Should you be buying Coca-Cola stock or one of its competitors? The main competitors of Coca-Cola include PepsiCo (PEP), Diageo (DEO), Procter & Gamble (PG), Unilever (UL), Anheuser-Busch InBev SA/NV (BUD), Mondelez International (MDLZ), Altria Group (MO), British American Tobacco (BTI), Constellation Brands (STZ), and Keurig Dr Pepper (KDP). These companies are all part of the "consumer staples" sector.
PepsiCo (NASDAQ:PEP) and Coca-Cola (NYSE:KO) are both large-cap consumer staples companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, dividends, profitability, valuation, community ranking, institutional ownership, earnings, media sentiment and analyst recommendations.
In the previous week, PepsiCo had 65 more articles in the media than Coca-Cola. MarketBeat recorded 101 mentions for PepsiCo and 36 mentions for Coca-Cola. PepsiCo's average media sentiment score of 0.61 beat Coca-Cola's score of 0.42 indicating that Coca-Cola is being referred to more favorably in the news media.
PepsiCo has a beta of 0.53, meaning that its stock price is 47% less volatile than the S&P 500. Comparatively, Coca-Cola has a beta of 0.59, meaning that its stock price is 41% less volatile than the S&P 500.
Coca-Cola received 75 more outperform votes than PepsiCo when rated by MarketBeat users. However, 68.25% of users gave PepsiCo an outperform vote while only 67.65% of users gave Coca-Cola an outperform vote.
Coca-Cola has a net margin of 23.42% compared to Coca-Cola's net margin of 10.00%. Coca-Cola's return on equity of 57.37% beat PepsiCo's return on equity.
Coca-Cola has lower revenue, but higher earnings than PepsiCo. Coca-Cola is trading at a lower price-to-earnings ratio than PepsiCo, indicating that it is currently the more affordable of the two stocks.
73.1% of PepsiCo shares are owned by institutional investors. Comparatively, 70.3% of Coca-Cola shares are owned by institutional investors. 0.2% of PepsiCo shares are owned by company insiders. Comparatively, 1.0% of Coca-Cola shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
PepsiCo pays an annual dividend of $5.06 per share and has a dividend yield of 2.9%. Coca-Cola pays an annual dividend of $1.94 per share and has a dividend yield of 3.1%. PepsiCo pays out 76.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Coca-Cola pays out 78.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. PepsiCo has raised its dividend for 52 consecutive years and Coca-Cola has raised its dividend for 63 consecutive years. Coca-Cola is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
PepsiCo currently has a consensus target price of $187.42, suggesting a potential upside of 6.74%. Coca-Cola has a consensus target price of $67.22, suggesting a potential upside of 8.88%. Given PepsiCo's stronger consensus rating and higher possible upside, analysts plainly believe Coca-Cola is more favorable than PepsiCo.
Summary
Coca-Cola beats PepsiCo on 12 of the 20 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding KO and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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