CocaCola Company (The) (KO) vs PepsiCo, Inc. (PEP)

CocaCola Company (The) and PepsiCo, Inc. are both Beverages Non Alcoholic companies. CocaCola Company (The) is the larger, with a market value of $379.2B against $174.5B — 2.2× the size. PepsiCo, Inc. trades at the lower P/E: 16.9× against 26.4×. CocaCola Company (The) grew revenue faster over the last twelve months: 6.52% against 5.62%. CocaCola Company (The) has the higher net margin (28.6% vs 10.8%) and the lower return on invested capital (14.2% vs 16.6%). Both pay a dividend; CocaCola Company (The) yields more (3.02% vs 2.84%). Across the 23 metrics below, CocaCola Company (The) leads on 15 and PepsiCo, Inc. on 8.

Valuation

Metric KO PEP Beverages Non Alcoholic median
P/E 26.37 16.86 21.29
P/S 7.54 1.81 1.65
P/B 9.86 7.89 4.58
Price to free cash flow 26.42 33.55 20.78
EV/EBITDA 25.49 11.09 11.71
EV/Sales 8.08 2.14 2.05
Earnings yield 3.79% 5.93% 3.53%
Free cash flow yield 3.79% 2.98% 4.40%

Profitability

Metric KO PEP Beverages Non Alcoholic median
Gross margin 61.89% 53.96% 41.13%
Operating margin 29.63% 14.82% 13.39%
Net margin 28.56% 10.78% 8.35%
Free cash flow margin 28.53% 10.02% 8.38%
Return on equity 41.80% 51.19% 23.98%
Return on assets 13.49% 9.61% 8.96%
Return on invested capital 14.19% 16.57% 14.10%

Growth

Metric KO PEP Beverages Non Alcoholic median
Revenue growth (TTM) 6.52% 5.62% 10.11%
EPS growth (last fiscal year) 23.58% (13.67%) —
Revenue growth, 5-year CAGR 7.75% 5.94% 10.75%
Net income growth, 5-year CAGR 11.09% 2.96% 10.26%

Health

Metric KO PEP Beverages Non Alcoholic median
Debt to equity 1.14 1.91 0.00
Current ratio 1.30 0.93 1.30
Net debt to EBITDA 1.90 2.09 0.08

Dividend

Metric KO PEP Beverages Non Alcoholic median
Dividend yield 3.02% 2.84% 3.00%
Payout ratio 0.75 0.83 0.03

Size

Metric KO PEP Beverages Non Alcoholic median
Market cap 379.18b 174.47b 3.40b

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