KO vs. PEP, DEO, PM, PG, UL, BUD, MDLZ, CL, MO, and STZ
Should you be buying Coca-Cola stock or one of its competitors? The main competitors of Coca-Cola include PepsiCo (PEP), Diageo (DEO), Philip Morris International (PM), Procter & Gamble (PG), Unilever (UL), Anheuser-Busch InBev SA/NV (BUD), Mondelez International (MDLZ), Colgate-Palmolive (CL), Altria Group (MO), and Constellation Brands (STZ). 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 investment? We will contrast the two companies based on the strength of their valuation, media sentiment, earnings, analyst recommendations, institutional ownership, risk, community ranking, profitability and dividends.
73.1% of PepsiCo shares are held by institutional investors. Comparatively, 70.3% of Coca-Cola shares are held by institutional investors. 0.1% of PepsiCo shares are held by insiders. Comparatively, 1.0% of Coca-Cola shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
PepsiCo has a beta of 0.52, suggesting that its stock price is 48% less volatile than the S&P 500. Comparatively, Coca-Cola has a beta of 0.57, suggesting that its stock price is 43% less volatile than the S&P 500.
PepsiCo presently has a consensus price target of $187.42, indicating a potential upside of 5.64%. Coca-Cola has a consensus price target of $68.27, indicating a potential upside of 8.63%. Given PepsiCo's stronger consensus rating and higher probable upside, analysts clearly believe Coca-Cola is more favorable than PepsiCo.
In the previous week, Coca-Cola had 37 more articles in the media than PepsiCo. MarketBeat recorded 61 mentions for Coca-Cola and 24 mentions for PepsiCo. Coca-Cola's average media sentiment score of 0.72 beat PepsiCo's score of 0.64 indicating that PepsiCo is being referred to more favorably in the media.
Coca-Cola has a net margin of 23.41% 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.
Coca-Cola received 79 more outperform votes than PepsiCo when rated by MarketBeat users. However, 68.25% of users gave PepsiCo an outperform vote while only 67.73% of users gave Coca-Cola an outperform vote.
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 77.6% 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 53 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.
Summary
Coca-Cola beats PepsiCo on 13 of the 21 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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