PepsiCo vs Competition: Who Wins?
Here is how PepsiCo (PEP) stock stacks up against its peers in size, valuation, growth and margin.
- PEP’s operating margin of 13.2% is strong, higher than most peers though lower than KO (30.6%).
- PEP’s revenue growth of 0.5% in the last 12 months is low, lagging KO, MDLZ, KDP, CPB but outpacing CAG.
- PEP’s stock is down 9.9% in last 1 year, and trades at a PE of 28.4; it underperformed KO.
As a quick background, PepsiCo provides beverages, snacks, dips, spreads, cereals, and mixes, offering a diverse range of convenient food products globally.
PEP stock has jumped meaningfully recently and we currently find it unattractive. This may feel like a caution, and there is significant risk in relying on a single stock. However, there is a huge value to a broader diversified approach. Strategic asset allocation and diversification helps you stay invested. Did you know investors who panicked out of the S&P in 2020 lost significant upside that followed? Trefis High Quality Portfolio and Empirical Asset Management’s asset allocation approach are designed to reduce volatility so you can stay the course.
| PEP | KO | MDLZ | KDP | CPB | CAG | |
|---|---|---|---|---|---|---|
| Market Cap ($ Bil) | 205.5 | 288.5 | 79.6 | 35.1 | 9.1 | 8.9 |
| Revenue ($ Bil) | 92.4 | 47.1 | 37.1 | 15.8 | 10.3 | 11.5 |
| PE Ratio | 28.4 | 23.7 | 21.9 | 22.8 | 15.0 | 10.5 |
| LTM Revenue Growth | 0.5% | 1.3% | 3.1% | 4.6% | 6.4% | -4.1% |
| LTM Operating Margin | 13.2% | 30.6% | 13.1% | 21.5% | 13.2% | 11.8% |
| LTM FCF Margin | 7.3% | -1.5% | 7.7% | 10.0% | 6.9% | 10.0% |
| 12M Market Return | -9.9% | -0.3% | -11.0% | -27.1% | -33.6% | -33.1% |
Why does this matter? PEP just went up 5.7% in a week – peer comparison puts stock performance, valuation, and financials in context – highlighting whether it is truly outperforming, lagging behind, and above all – can this continue? Read Buy or Sell PEP Stock to see if PepsiCo holds up as a quality investment.
- COKE, KDP Look Smarter Buy Than PepsiCo Stock
- Pay Less, Gain More: COKE, KDP Top PepsiCo Stock
- Better Value & Growth: KDP Leads PepsiCo Stock
- Ten-Year Tally: PepsiCo Stock Delivers $73 Bil Gain
- KDP Looks Smarter Buy Than PepsiCo Stock
- S&P 500 Movers | Winners: PEP, MKTX, AZO | Losers: SNPS, MOS, TER
Revenue Growth Comparison
| LTM | 2025 | 2024 | 2023 | 2022 | |
|---|---|---|---|---|---|
| PEP | 0.5% | – | 0.4% | 5.9% | 8.7% |
| KO | 1.3% | – | 2.9% | 6.4% | 11.3% |
| MDLZ | 3.1% | – | 1.2% | 14.4% | 9.7% |
| KDP | 4.6% | – | 3.6% | 5.4% | 10.8% |
| CPB | 6.4% | 6.4% | 3.0% | 9.3% | |
| CAG | -4.1% | -3.6% | -1.8% | 6.4% |
Operating Margin Comparison
| LTM | 2025 | 2024 | 2023 | 2022 | |
|---|---|---|---|---|---|
| PEP | 13.2% | – | 14.1% | 14.1% | 13.1% |
| KO | 30.6% | – | 29.8% | 28.6% | 28.0% |
| MDLZ | 13.1% | – | 18.3% | 15.6% | 12.1% |
| KDP | 21.5% | – | 21.6% | 21.6% | 19.8% |
| CPB | 13.2% | 13.2% | 12.7% | 14.0% | |
| CAG | 11.8% | 12.6% | 15.3% | 14.9% |
PE Ratio Comparison
| LTM | 2025 | 2024 | 2023 | 2022 | |
|---|---|---|---|---|---|
| PEP | 28.4 | – | 21.8 | 25.8 | 28.0 |
| KO | 23.7 | – | 25.2 | 23.8 | 28.9 |
| MDLZ | 21.9 | – | 17.4 | 19.9 | 33.8 |
| KDP | 22.8 | – | 30.4 | 21.4 | 35.2 |
| CPB | 15.0 | 20.7 | 22.7 | 19.8 | |
| CAG | 10.5 | 11.5 | 39.5 | 27.1 |
The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.