Keurig Dr Pepper vs Coca-Cola Which Is a Better Investment?

Keurig Dr Pepper and Coca-Cola are two of the most well-known beverage companies in the world. Both companies have a large presence in the market and have consistently delivered strong financial results. However, there are key differences in their business models and strategies that investors should consider when evaluating their stocks. This analysis will compare the performance of Keurig Dr Pepper and Coca-Cola stocks, looking at key financial metrics, growth potential, and market trends.

Keurig Dr Pepper or Coca-Cola?

When comparing Keurig Dr Pepper and Coca-Cola, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Keurig Dr Pepper and Coca-Cola.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Keurig Dr Pepper has a dividend yield of 2.64%, while Coca-Cola has a dividend yield of 3.79%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Keurig Dr Pepper reports a 5-year dividend growth of -62.12% year and a payout ratio of 51.93%. On the other hand, Coca-Cola reports a 5-year dividend growth of 3.36% year and a payout ratio of 78.28%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Keurig Dr Pepper P/E ratio at 19.77 and Coca-Cola's P/E ratio at 26.24. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Keurig Dr Pepper P/B ratio is 1.80 while Coca-Cola's P/B ratio is 10.30.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Keurig Dr Pepper has seen a 5-year revenue growth of 0.55%, while Coca-Cola's is 0.31%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Keurig Dr Pepper's ROE at 9.11% and Coca-Cola's ROE at 39.75%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $32.71 for Keurig Dr Pepper and $63.25 for Coca-Cola. Over the past year, Keurig Dr Pepper's prices ranged from $28.62 to $38.28, with a yearly change of 33.75%. Coca-Cola's prices fluctuated between $56.60 and $73.53, with a yearly change of 29.91%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.