Keurig Dr Pepper, Inc (KDP) vs PepsiCo, Inc. (PEP)

Keurig Dr Pepper, Inc and PepsiCo, Inc. are both Beverages Non Alcoholic companies. PepsiCo, Inc. is the larger, with a market value of $174.5B against $42.0B — 4.2× the size. PepsiCo, Inc. trades at the lower P/E: 16.9× against 32.3×. Keurig Dr Pepper, Inc grew revenue faster over the last twelve months: 27.5% against 5.62%. PepsiCo, Inc. has the higher net margin (10.8% vs 6.69%) and the higher return on invested capital (16.6% vs 3.53%). Both pay a dividend; PepsiCo, Inc. yields more (2.84% vs 2.61%). Across the 23 metrics below, PepsiCo, Inc. leads on 14 and Keurig Dr Pepper, Inc on 9.

Valuation

Metric KDP PEP Beverages Non Alcoholic median
P/E 32.27 16.86 21.29
P/S 2.16 1.81 1.65
P/B 1.49 7.89 4.58
Price to free cash flow 21.90 33.55 20.78
EV/EBITDA 15.52 11.09 11.71
EV/Sales 3.58 2.14 2.05
Earnings yield 3.10% 5.93% 3.53%
Free cash flow yield 4.57% 2.98% 4.40%

Profitability

Metric KDP PEP Beverages Non Alcoholic median
Gross margin 49.39% 53.96% 41.13%
Operating margin 16.23% 14.82% 13.39%
Net margin 6.69% 10.78% 8.35%
Free cash flow margin 9.88% 10.02% 8.38%
Return on equity 4.96% 51.19% 23.98%
Return on assets 1.89% 9.61% 8.96%
Return on invested capital 3.53% 16.57% 14.10%

Growth

Metric KDP PEP Beverages Non Alcoholic median
Revenue growth (TTM) 27.48% 5.62% 10.11%
EPS growth (last fiscal year) 45.71% (13.67%) —
Revenue growth, 5-year CAGR 7.40% 5.94% 10.75%
Net income growth, 5-year CAGR 9.43% 2.96% 10.26%

Health

Metric KDP PEP Beverages Non Alcoholic median
Debt to equity 1.03 1.91 0.00
Current ratio 0.48 0.93 1.30
Net debt to EBITDA 2.77 2.09 0.08

Dividend

Metric KDP PEP Beverages Non Alcoholic median
Dividend yield 2.61% 2.84% 3.00%
Payout ratio 0.71 0.83 0.03

Size

Metric KDP PEP Beverages Non Alcoholic median
Market cap 41.95b 174.47b 3.40b

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