Reviewing PepsiCo (PEP) and Jones Soda Co. ( USA ) (JSDA)

PepsiCo (NASDAQ:PEP) and Jones Soda Co. ( USA ) (OTCMKTS:JSDA) are both consumer staples companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, risk, profitability, earnings, institutional ownership and dividends.

Volatility and Risk

PepsiCo has a beta of 0.6, indicating that its stock price is 40% less volatile than the S&P 500. Comparatively, Jones Soda Co. ( USA ) has a beta of 1.25, indicating that its stock price is 25% more volatile than the S&P 500.

Institutional and Insider Ownership

70.6% of PepsiCo shares are owned by institutional investors. Comparatively, 0.2% of Jones Soda Co. ( USA ) shares are owned by institutional investors. 0.3% of PepsiCo shares are owned by company insiders. Comparatively, 12.4% of Jones Soda Co. ( USA ) shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and price targets for PepsiCo and Jones Soda Co. ( USA ), as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PepsiCo 1 12 5 0 2.22
Jones Soda Co. ( USA ) 0 0 0 0 N/A

PepsiCo currently has a consensus price target of $117.44, indicating a potential upside of 0.52%. Given PepsiCo’s higher probable upside, research analysts clearly believe PepsiCo is more favorable than Jones Soda Co. ( USA ).

Profitability

This table compares PepsiCo and Jones Soda Co. ( USA )’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
PepsiCo 7.66% 73.27% 9.97%
Jones Soda Co. ( USA ) -16.59% -339.92% -42.47%

Dividends

PepsiCo pays an annual dividend of $3.71 per share and has a dividend yield of 3.2%. Jones Soda Co. ( USA ) does not pay a dividend. PepsiCo pays out 70.9% of its earnings in the form of a dividend. PepsiCo has raised its dividend for 45 consecutive years.

Valuation and Earnings

This table compares PepsiCo and Jones Soda Co. ( USA )’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
PepsiCo $63.53 billion 2.60 $4.86 billion $5.23 22.34
Jones Soda Co. ( USA ) $13.35 million 0.97 -$1.27 million N/A N/A

PepsiCo has higher revenue and earnings than Jones Soda Co. ( USA ).

Summary

PepsiCo beats Jones Soda Co. ( USA ) on 11 of the 14 factors compared between the two stocks.

PepsiCo Company Profile

PepsiCo, Inc. operates as a food and beverage company worldwide. Its Frito-Lay North America segment offers Lay's and Ruffles potato chips; Doritos, Tostitos, and Santitas tortilla chips; and Cheetos snacks, branded dips, and Fritos corn chips. The company's Quaker Foods North America segment provides cereals, rice, pasta, mixes and syrups, granola bars, grits, oat squares, oatmeal, rice cakes, simply granola, and side dishes under the brands Quaker, Aunt Jemima, Cap'n crunch, life, Quaker Chewy, and Rice-A-Roni. Its North America Beverages segment offers beverage concentrates, fountain syrups, and finished goods under the Aquafina, Diet Mountain Dew, Diet Pepsi, Gatorade, Mist Twst, Mountain Dew, Pepsi, Propel, and Tropicana brands; and ready-to-drink tea, coffee, and juices. The company's Latin America segment provides snack foods under the Cheetos, Doritos, Emperador, Lay's, Marias Gamesa, Rosquinhas Mabel, Ruffles, Sabritas, Saladitas, and Tostitos; cereals and snacks under the Quaker brand; and beverage concentrates, fountain syrups, and finished goods under the 7UP, Diet Pepsi, Gatorade, H2oh!, Manzanita Sol, Mirinda, Pepsi, and Toddy brands. Its Europe Sub-Saharan Africa segment offers snack food; cereals and snacks; beverage concentrates, fountain syrups, and finished goods; ready-to-drink tea products; and dairy products under the Agusha, Chudo, and Domik v Derevne brand names. The company's Asia, Middle East and North Africa segment provides snack foods under the Cheetos, Chipsy, Crunchy, Doritos, Kurkure, and Lay's brands; cereals and snacks under the Quaker brand; beverage concentrates, fountain syrups, and finished goods; and ready-to-drink tea products. The company was founded in 1898 and is headquartered in Purchase, New York.

Jones Soda Co. ( USA ) Company Profile

Jones Soda Co., together with its subsidiaries, develops, produces, markets, and distributes beverages in the United States, Canada, and internationally. It provides Jones Soda, a premium carbonated soft drink; Lemoncocco, a premium non-carbonated beverage; and co-brand and private label products. It also offers fountain products, including cane sugar cola and sugar free cola, as well as cane sugar sweetened ginger ale, orange and cream, root beer, and lemon lime. The company sells its products primarily in grocery stores, convenience and gas stores, restaurants, delicatessens, and sandwich shops, as well as through national accounts with various retailers. It also sells various products online, including soda with customized labels, wearables, candy, and other items, as well as licenses its trademarks for use on products sold by other manufacturers. The company sells and distributes its products through a network of independent distributors, as well as directly to its national and regional retail accounts. Jones Soda Co. was founded in 1986 and is based in Seattle, Washington.

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