Which Is A Better Beverage Pick – PepsiCo Stock Or KDP?

We believe that PepsiCo stock (NYSE: PEP) and its industry peer Keurig Dr Pepper stock (NYSE: KDP) may offer little returns in the next three years. PEP is trading at 2.9x trailing revenues compared to 3.1x for KDP. Investors have assigned a marginally higher multiple to Keurig Dr Pepper stock due to its slightly better profitability, as discussed below.

If we look at stock returns, PepsiCo
PEP
, with 3% returns this year, has fared better than Keurig Dr Pepper, down 11%, and both have underperformed the broader S&P 500 index, up 14%. There is more to the comparison, and in the sections below, we discuss the potential returns for PEP and KDP. We compare a slew of factors, such as historical revenue growth, returns, and valuation, in an interactive dashboard analysis of PepsiCo vs. Keurig Dr Pepper: Which Stock Is A Better Bet? Parts of the analysis are summarized below.