Can Keurig Dr Pepper Outrun PepsiCo in the Next Rally?
PepsiCo surged 17% during the past Month. You may be tempted to buy more, or may want to reduce your exposure. But there is an entirely different perspective you might be missing. Is there a better alternative? Turns out, its peer Keurig Dr Pepper gives you more. Keurig Dr Pepper (KDP) stock offers superior revenue growth across key periods, better profitability, and relatively lower valuation vs PepsiCo (PEP) stock, suggesting you may be better off investing in KDP
- KDP’s quarterly revenue growth was 10.7%, vs. PEP’s 5.6%.
- In addition, its Last 12 Months revenue growth came in at 6.8%, ahead of PEP’s 2.3%.
- KDP leads on profitability over both periods – LTM margin of 21.5% and 3-year average of 21.8%.
These differences become even clearer when you look at the financials side by side. The table highlights how PEP’s fundamentals stack up against those of KDP on growth, margins, momentum, and valuation multiples.
Valuation & Performance Overview
| PEP | KDP | Preferred | |
|---|---|---|---|
| Valuation | |||
| P/EBIT Ratio | 17.0 | 11.6 | KDP |
| Revenue Growth | |||
| Last Quarter | 5.6% | 10.7% | KDP |
| Last 12 Months | 2.3% | 6.8% | KDP |
| Last 3 Year Average | 2.9% | 5.9% | KDP |
| Operating Margins | |||
| Last 12 Months | 14.4% | 21.5% | KDP |
| Last 3 Year Average | 14.2% | 21.8% | KDP |
| Momentum | |||
| Last 3 Year Return | 5.4% | -10.4% | PEP |
Note: For “Last 3 Year Return” metric, preferred stock is one with higher returns unless the returns are too high (>300%) which creates risk of sell off.
See more revenue details: PEP Revenue Comparison | KDP Revenue Comparison
See more margin details: PEP Operating Income Comparison | KDP Operating Income Comparison
See detailed fundamentals on Buy or Sell KDP Stock and Buy or Sell PEP Stock. Below we compare market return and related metrics across years.
Historical Market Performance
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Total [1] | Avg | Best | |
|---|---|---|---|---|---|---|---|---|---|
| Returns | |||||||||
| PEP Return | 21% | 7% | -3% | -8% | -2% | 15% | 30% | ||
| KDP Return | 17% | -1% | -4% | -1% | -10% | 6% | 5% | ||
| S&P 500 Return | 27% | -19% | 24% | 23% | 16% | 1% | 84% | <=== | |
| Monthly Win Rates [3] | |||||||||
| PEP Win Rate | 58% | 50% | 58% | 33% | 50% | 100% | 58% | ||
| KDP Win Rate | 50% | 42% | 42% | 50% | 58% | 50% | 49% | ||
| S&P 500 Win Rate | 75% | 42% | 67% | 75% | 67% | 50% | 62% | <=== | |
| Max Drawdowns [4] | |||||||||
| PEP Max Drawdown | -13% | -11% | -11% | -8% | -15% | -5% | -10% | ||
| KDP Max Drawdown | -4% | -6% | -20% | -13% | -19% | -4% | -11% | ||
| S&P 500 Max Drawdown | -1% | -25% | -1% | -2% | -15% | -1% | -7% | <=== | |
[1] Cumulative total returns since the beginning of 2021
[2] 2026 data is for the year up to 2/23/2026 (YTD)
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
No matter how good the numbers, stock investment is never a smooth ride. There is a risk you must factor in. Read KDP Dip Buyer Analyses to see how the stock has fallen and recovered in the past.
Still not sure about PEP or KDP? Consider portfolio approach.
Portfolios Are The Smarter Way To Invest
Individual stocks are unpredictable. A smart portfolio helps you invest, limits downside shocks, and provides upside exposure.
Why settle for average market returns? The Trefis High Quality (HQ) Portfolio invests in a diverse group of 30 stocks that have collectively delivered stronger upside with reduced volatility compared to the broader indices. Discover the methodology behind these smoother, higher returns by checking the HQ Portfolio performance data.