KO vs PEP: Coca-Cola vs PepsiCo Stock Comparison: AI Score, Valuation, Performance and Upside
Coca-Cola is a purer beverage franchise with a more asset-light model and higher margins, while PepsiCo is a larger, more diversified company with dominant snack brands via Frito-Lay alongside its beverage portfolio. The choice is between Coca-Cola's beverage purity and margin quality versus PepsiCo's food-and-beverage diversification.
Use this KO vs PEP comparison to choose between two of the most reliable dividend growth stocks in the market. Both reward patient investors with durable cash flows and consistent dividend raises — the difference is portfolio composition and the business model each uses to generate those returns.
KO holds the edge across 3 of 5 key metrics in this comparison. KO has delivered stronger 1-year price return (+30.93% vs -11.28%), though PEP has the better forward P/E setup (15.71x vs 25.43x for KO). KO leads on both revenue growth (6.70%) and operating margin (34.87%), suggesting a stronger fundamental setup on both dimensions. Analyst consensus implies meaningfully more upside for PEP (+9.87%) than for KO (+5.62%).
Human Wall Street analysts' price targets, typically implying a ~12-month view — a separate signal from this site's own AI Prediction Signal further down the page, which is a 5-/30-day machine-learning forecast based on price history alone.
- Want a pure-play global beverage franchise with best-in-class operating margins
- Prioritise the highest dividend consistency and one of the longest Dividend King track records
- Prefer an asset-light franchise model with low capital intensity and high free cash flow conversion
- Seek defensive consumer staples exposure with strong emerging market distribution
- Want diversified consumer staples exposure spanning both snacks and beverages
- Value Frito-Lay's dominant snack market share and pricing power as a core driver
- Prefer a larger total revenue base with more product category optionality
- Are comfortable with slightly more capex intensity in exchange for vertical integration
| Metric | KO | PEP |
|---|---|---|
| AI scorei | 52.6 | 41.4 |
| AI ranki | #516 | #1017 |
| Latest closei | $92.71 | $135.77 |
| 1M returni | +5.24% | +4.29% |
| 3M returni | +12.72% | -0.64% |
| 6M returni | +20.98% | -12.65% |
| 1Y returni | +30.93% | -11.28% |
How much would $10,000 be worth today if invested at the start of each period, with all dividends reinvested?
| Period | KO | PEP |
|---|---|---|
| 1Y ago | $13.26K (+32.6%) started 2025-10-23 | $8.96K (-10.4%) started 2025-10-23 |
| 5Y ago | $21.22K (+112.2%) started 2021-10-25 | $10.5K (+5.0%) started 2021-10-25 |
| 10Y ago | $38.76K (+287.6%) started 2016-10-24 | $21.53K (+115.3%) started 2016-10-24 |
Hypothetical — past performance does not guarantee future results.
| Metric | KO | PEP |
|---|---|---|
| Market capi | $385.77B | $192.7B |
| Trailing P/Ei | 26.92 | 18.32 |
| Forward P/Ei | 25.43 | 15.71 |
| Price/Salesi | 6.55 | 1.95 |
| EV/Revenuei | 8.29 | 2.43 |
| Analyst targeti | $94.70 | $155.00 |
| Target upsidei | +5.62% | +9.87% |
| Metric | KO | PEP |
|---|---|---|
| Revenue growthi | 6.70% | 6.40% |
| Earnings growthi | 16.90% | 137.00% |
| EPS growthi | +16.90% | +137.00% |
| FCF margini | +10.41% | +8.08% |
| Operating margini | 34.87% | 16.84% |
| Profit margini | 28.56% | 10.79% |
| ROIC proxyi | 42.05% | 51.51% |
| Return on equityi | 42.05% | 51.51% |
| Dividend yieldi | 2.36% | 4.20% |
| Payout ratioi | 62.46% | 73.02% |
| Dividend growth streaki | No increase yet | No increase yet |
| Betai | 0.34 | 0.36 |
| Debt/equityi | 115.52 | 238.95 |
| Current ratioi | 1.30 | 0.93 |
| Quick ratioi | 0.80 | 0.69 |
Over the past year, KO and PEP have moved moderately in the same direction (correlation of 0.60), based on daily returns.
Lower drawdown and smaller single-period drops generally indicate a smoother ride, though they do not guarantee lower future risk.
| Period | Metric | KO | PEP |
|---|---|---|---|
| 1Y | Growthi | +32.56% | -10.39% |
| CAGRi | +32.61% | -10.40% | |
| Volatilityi | 19.09% | 21.22% | |
| Sharpe ratioi | 1.34 | -0.63 | |
| Sortino ratioi | 2.21 | -0.89 | |
| Max drawdowni | 8.50% | 27.43% | |
| Current drawdowni | 2.76% | 20.36% | |
| Avg drawdowni | 2.99% | 11.48% | |
| Ulcer Indexi | 3.79% | 13.72% | |
| Max daily dropi | 3.96% | 3.37% | |
| Max wkly dropi | 5.54% | 6.57% | |
| 5Y | Growthi | +89.96% | -5.59% |
| CAGRi | +13.71% | -1.15% | |
| Volatilityi | 16.88% | 19.13% | |
| Sharpe ratioi | 0.58 | -0.20 | |
| Sortino ratioi | 0.85 | -0.28 | |
| Max drawdowni | 17.27% | 32.88% | |
| Current drawdowni | 2.76% | 26.35% | |
| Avg drawdowni | 4.75% | 12.18% | |
| Ulcer Indexi | 6.09% | 14.94% | |
| Max daily dropi | 6.96% | 6.20% | |
| Max wkly dropi | 7.43% | 7.25% | |
| 10Y | Growthi | +185.08% | +62.36% |
| CAGRi | +11.05% | +4.97% | |
| Volatilityi | 18.52% | 20.03% | |
| Sharpe ratioi | 0.42 | 0.12 | |
| Sortino ratioi | 0.59 | 0.17 | |
| Max drawdowni | 36.99% | 32.88% | |
| Current drawdowni | 2.76% | 26.35% | |
| Avg drawdowni | 5.58% | 8.27% | |
| Ulcer Indexi | 7.86% | 11.43% | |
| Max daily dropi | 9.67% | 11.43% | |
| Max wkly dropi | 20.98% | 18.45% |
| Category | KO | PEP |
|---|---|---|
| Company | The Coca-Cola Company | PepsiCo, Inc. |
| Sector | Consumer Defensive | Consumer Defensive |
| Industry | Beverages - Non-Alcoholic | Beverages - Non-Alcoholic |
| Core business | Global beverages company with a portfolio of over 200 brands including Coca-Cola, Sprite, Fanta, Dasani, Minute Maid, and Costa Coffee. Operates primarily as a franchise model selling concentrate to bottling partners. | Diversified food and beverage company. Beverages include Pepsi, Gatorade, Mountain Dew, Lipton, and Bubly. Food and snack brands include Frito-Lay (Lay's, Doritos, Cheetos), Quaker, and Sabra. |
| Investor focus | Organic revenue growth driven by pricing and volume, emerging market exposure, away-from-home channel recovery, and dividend growth sustainability. | Frito-Lay snack division performance, beverage volume recovery, pricing vs volume trade-off, and international snack expansion. |
- World's most recognised beverage brand with unmatched global distribution
- Asset-light franchise model produces exceptional operating margins and free cash flow
- 62+ consecutive years of dividend increases — one of the most consistent Dividend Kings
- Frito-Lay is the dominant US snack brand with extraordinary pricing power and shelf space control
- Diversification across both beverages and snacks reduces reliance on any single category
- 52+ consecutive years of dividend increases, with higher overall revenue than Coca-Cola
- Heavy reliance on the sparkling soft drink category amid secular health and sugar concerns
- Currency headwinds from significant international revenue exposure
- Volume growth challenges in developed markets where carbonated drink demand is flat
- Frito-Lay volume declines as consumers push back on snack pricing after years of increases
- Quaker recall and food safety incident reputational and financial impact
- Higher capex requirements from owning bottling and manufacturing operations vs Coca-Cola's franchise model
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