PepsiCo (PEP) and Its Peers Financial Comparison

PepsiCo (NASDAQ:PEP) is one of 137 publicly-traded companies in the “Beverages” industry, but how does it contrast to its rivals? We will compare PepsiCo to related businesses based on the strength of its risk, dividends, analyst recommendations, profitability, valuation, earnings and institutional ownership.

Profitability

This table compares PepsiCo and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PepsiCo	11.09%	53.08%	10.42%
PepsiCo Competitors	-8.58%	-34.35%	0.18%

Analyst Recommendations

This is a breakdown of recent ratings and target prices for PepsiCo and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PepsiCo	1	14	4	1	2.25
PepsiCo Competitors	1282	4329	5775	230	2.43

PepsiCo currently has a consensus target price of $143.28, suggesting a potential upside of 0.60%. As a group, “Beverages” companies have a potential upside of 6.12%. Given PepsiCo’s rivals stronger consensus rating and higher possible upside, analysts plainly believe PepsiCo has less favorable growth aspects than its rivals.

Dividends

PepsiCo pays an annual dividend of $5.92 per share and has a dividend yield of 4.2%. PepsiCo pays out 74.4% of its earnings in the form of a dividend. As a group, “Beverages” companies pay a dividend yield of 2.9% and pay out 48.9% of their earnings in the form of a dividend. PepsiCo has increased its dividend for 54 consecutive years.

Earnings & Valuation

This table compares PepsiCo and its rivals revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
PepsiCo	$98.24 billion	$8.24 billion	17.89
PepsiCo Competitors	$52.18 billion	$869.16 million	9.32

PepsiCo has higher revenue and earnings than its rivals. PepsiCo is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Volatility and Risk

PepsiCo has a beta of 0.31, indicating that its stock price is 69% less volatile than the S&P 500. Comparatively, PepsiCo’s rivals have a beta of -0.23, indicating that their average stock price is 123% less volatile than the S&P 500.

Institutional and Insider Ownership

73.1% of PepsiCo shares are owned by institutional investors. Comparatively, 36.3% of shares of all “Beverages” companies are owned by institutional investors. 0.1% of PepsiCo shares are owned by insiders. Comparatively, 19.4% of shares of all “Beverages” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

PepsiCo beats its rivals on 10 of the 15 factors compared.

PepsiCo Company Profile

PepsiCo, Inc. engages in the manufacture, marketing, distribution, and sale of various beverages and convenient foods worldwide. The company operates through seven segments: Frito-Lay North America; Quaker Foods North America; PepsiCo Beverages North America; Latin America; Europe; Africa, Middle East and South Asia; and Asia Pacific, Australia and New Zealand and China Region. It provides dips, cheese-flavored snacks, and spreads, as well as corn, potato, and tortilla chips; cereals, rice, pasta, mixes and syrups, granola bars, grits, oatmeal, rice cakes, and side dishes; beverage concentrates, fountain syrups, and finished goods; ready-to-drink tea, coffee, and juices; dairy products; and sparkling water makers and related products, as well as distributes alcoholic beverages under Hard MTN Dew brand. The company offers its products primarily under the Lay’s, Doritos, Fritos, Tostitos, BaiCaoWei, Cheetos, Cap’n Crunch, Life, Pearl Milling Company, Gatorade, Pepsi-Cola, Mountain Dew, Quaker, Rice-A-Roni, Aquafina, Bubly, Emperador, Diet Mountain Dew, Diet Pepsi, Gatorade Zero, Crush, Propel, Dr Pepper, Schweppes, Marias Gamesa, Ruffles, Sabritas, Saladitas, Tostitos, 7UP, Diet 7UP, H2oh!, Manzanita Sol, Mirinda, Pepsi Black, Pepsi Max, San Carlos, Toddy, Walkers, Chipsy, Kurkure, Sasko, Spekko, White Star, Smith’s, Sting, SodaStream, Lubimyj Sad, Agusha, Chudo, Domik v Derevne, Lipton, and other brands. It serves wholesale and other distributors, foodservice customers, grocery stores, drug stores, convenience stores, discount/dollar stores, mass merchandisers, membership stores, hard discounters, e-commerce retailers and authorized independent bottlers, and others through a network of direct-store-delivery, customer warehouse, and distributor networks, as well as directly to consumers through e-commerce platforms and retailers. The company was founded in 1898 and is based in Purchase, New York.