PepsiCo (NASDAQ: PEP) is one of 54 public companies in the “BEVERAGES” industry, but how does it weigh in compared to its competitors? We will compare PepsiCo to similar companies based on the strength of its institutional ownership, profitability, earnings, risk, analyst recommendations, valuation and dividends.
PepsiCo pays an annual dividend of $3.22 per share and has a dividend yield of 3.0%. PepsiCo pays out 95.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “BEVERAGES” companies pay a dividend yield of 1.5% and pay out 34.6% of their earnings in the form of a dividend.
Earnings & Valuation
This table compares PepsiCo and its competitors gross revenue, earnings per share and valuation.
PepsiCo has higher revenue and earnings than its competitors. PepsiCo is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.
This table compares PepsiCo and its competitors’ net margins, return on equity and return on assets.
||Return on Equity
||Return on Assets
Volatility and Risk
PepsiCo has a beta of 0.69, meaning that its stock price is 31% less volatile than the S&P 500. Comparatively, PepsiCo’s competitors have a beta of 0.57, meaning that their average stock price is 43% less volatile than the S&P 500.
Insider and Institutional Ownership
70.8% of PepsiCo shares are held by institutional investors. Comparatively, 30.8% of shares of all “BEVERAGES” companies are held by institutional investors. 0.3% of PepsiCo shares are held by company insiders. Comparatively, 20.7% of shares of all “BEVERAGES” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
This is a breakdown of current ratings for PepsiCo and its competitors, as reported by MarketBeat.com.
||Strong Buy Ratings
PepsiCo currently has a consensus target price of $122.23, indicating a potential upside of 13.24%. As a group, “BEVERAGES” companies have a potential upside of 9.64%. Given PepsiCo’s higher probable upside, research analysts clearly believe PepsiCo is more favorable than its competitors.
PepsiCo beats its competitors on 10 of the 15 factors compared.
PepsiCo, Inc. is a global food and beverage company. The Company’s portfolio of brands includes Frito-Lay, Gatorade, Pepsi-Cola, Quaker and Tropicana. The Company operates through six segments: Frito-Lay North America (FLNA), Quaker Foods North America (QFNA), North America Beverages (NAB), Latin America, Europe Sub-Saharan Africa (ESSA), and Asia, Middle East and North Africa (AMENA). The FLNA segment includes its branded food and snack businesses in the United States and Canada. The QFNA segment includes its cereal, rice, pasta and other branded food businesses in the United States and Canada. The NAB segment includes its beverage businesses in the United States and Canada. The Latin America segment includes its beverage, food and snack businesses in Latin America. The ESSA segment includes its beverage, food and snack businesses in Europe and Sub-Saharan Africa. The AMENA segment includes its beverage, food and snack businesses in Asia, Middle East and North Africa.
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