Is it better to buy Pepsi or Coke stock?
Pepsi is the cheaper stock, but investors might still prefer paying the premium for Coke over its less expensive rival. Sure, you can own Pepsi for 2.5 times sales, or less than half of Coke's price-to-sales (P/S) ratio of 5.6. You'll get roughly the same 3% dividend yield in either case.
1. The stock is cheaper. Even after outperforming KO stock in recent years, its price-to-earnings ratio is still slightly cheaper than Coke's. On a price-to-sales basis, Pepsi (2.6) is markedly cheaper than Coke (6.0).
Based on analyst ratings, PepsiCo's 12-month average price target is $187.09. PepsiCo has 11.80% upside potential, based on the analysts' average price target. PepsiCo has a consensus rating of Moderate Buy which is based on 8 buy ratings, 6 hold ratings and 0 sell ratings.
The soda maker is still a great evergreen investment. Coca-Cola (KO 1.91%) is often considered a safe blue chip stock. It owns the world's top soda brand, it generates plenty of cash, and it pays consistent dividends. But over the past 12 months, its stock declined 3% as the S&P 500 rallied 23%.
The company serves customers in more than 200 countries and territories. PEP is a #3 (Hold) on the Zacks Rank, with a VGM Score of B. Additionally, the company could be a top pick for growth investors. PEP has a Growth Style Score of A, forecasting year-over-year earnings growth of 7% for the current fiscal year.
In addition to being a Dividend King, PepsiCo (PEP -0.27%) has a yield of 3.3% at its current share price -- high relative to the average yield of 1.3% for the S&P 500.
Coke trademark brands (Coca-Cola, Diet Coke, Coke Zero Sugar and others) controlled 69% of the segment while Pepsi (Pepsi-Cola, Diet Pepsi and Pepsi Zero Sugar) captured 27%. Cola accounted for half of the $96 billion that U.S. consumers spent on all soft drinks in 2023, Beverage Digest figures show.
PepsiCo Inc quote is equal to 164.970 USD at 2024-06-29. Based on our forecasts, a long-term increase is expected, the "PEP" stock price prognosis for 2029-06-20 is 222.068 USD. With a 5-year investment, the revenue is expected to be around +34.61%. Your current $100 investment may be up to $134.61 in 2029.
Stock Price Forecast
The 11 analysts with 12-month price forecasts for PepsiCo stock have an average target of 189, with a low estimate of 170 and a high estimate of 211. The average target predicts an increase of 12.98% from the current stock price of 167.28.
| Company (ticker) | Analysts' consensus recommendation score | Analysts' consensus recommendation |
|---|---|---|
| Boston Scientific (BSX) | 1.47 | Strong Buy |
| Micron Technologies (MU) | 1.47 | Strong Buy |
| S&P Global (SPGI) | 1.48 | Strong Buy |
| Targa Resources (TRGP) | 1.50 | Strong Buy |
How much will Coca-Cola stock be worth in 5 years?
Coca-Cola stock price stood at $63.14
According to the latest long-term forecast, Coca-Cola price will hit $65 by the end of 2024 and then $70 by the middle of 2026. Coca-Cola will rise to $75 within the year of 2027, $85 in 2028, $95 in 2029, $100 in 2030, $110 in 2031 and $125 in 2034.
Coca-Cola Company (NYSE:KO) has announced annual dividend increases over the past 62 years without a break, an achievement which has made it one of the safest dividend stocks in the market.
When it comes to dividend stocks, Coca-Cola is a model of consistency, having raised its dividend for 62 consecutive years. Coke's track record for dividend raises, 3.1% yield, and recession-resistant business model make it one of the safest passive income plays out there.
Pepsi is the cheaper stock, but investors might still prefer paying the premium for Coke over its less expensive rival. Sure, you can own Pepsi for 2.5 times sales, or less than half of Coke's price-to-sales (P/S) ratio of 5.6. You'll get roughly the same 3% dividend yield in either case.
Is PepsiCo stock a Buy, Sell or Hold? PepsiCo stock has received a consensus rating of buy. The average rating score is and is based on 33 buy ratings, 26 hold ratings, and 0 sell ratings.
Considering its price-to-earnings ratio of 26.8, the stock looks fairly valued for a company with a reputation for reliable growth in a recession-proof industry. PepsiCo is known for its dependable dividend and steady dividend growth, and its yield is now 3%.
Coca-Cola and Pepsi are also both considered to have high-yield dividends -- a yield is how much investors get back compared to the value of the investment. The yield for Coca-Cola is over 3%, whereas the yield for Pepsi is just below that.
Coca-Cola is the market leader in non-alcoholic beverages, but one thing that may surprise people is just how much more revenue PepsiCo brings in. In Q2 2023, Coca-Cola made around $12 billion in revenue, more than $10 billion less than PepsiCo made.
This is the total amount of dividends paid out to shareholders in a year. PepsiCo, Inc.'s ( PEP ) ex-dividend date is June 7, 2024 , which means that buyers purchasing shares on or after that date will not be eligible to receive the next dividend payment. PepsiCo, Inc. ( PEP ) pays dividends on a quarterly basis.
“Pepsi is sweeter than Coke,” writes Malcolm Gladwell in his book Blink. He goes on, “Pepsi is also characterized by a citrusy flavor burst, unlike the more raisiny-vanilla taste of Coke.” Those observations are in line with the ingredients. Pepsi contains citric acid, while Coke does not.
Who is more valuable Coke or Pepsi?
At roughly $246 billion on Monday, Coca-Cola's market cap is more than $15 billion above PepsiCo's. Coca-Cola has long held the top spot in part due to its strong brand portfolio and record of sales growth.
This month, the astonishing news broke that, after more than a century of pitched battle – including ad skirmishes, frantic marketing, and taste tests on both Earth and in space – the cola wars were officially over. Coca-Cola had always been the winner, but its longtime rival, Pepsi, was no longer No 2.
But PepsiCo has little downside and a good dividend, which are good reasons to buy and hold. Moreover, the company could actually have higher upside than one might think due to surprisingly strong profit growth in key markets.
According to the latest TipRanks data, approximately 40.12% of the company's stock is held by institutional investors, 0.55% is held by insiders, and 41.29% is held by retail investors. Vanguard owns the most shares of PepsiCo (PEP).
PepsiCo is forecast to grow earnings and revenue by 9.6% and 4.2% per annum respectively.
