Keurig Dr Pepper vs PepsiCo Which Is More Lucrative?

Keurig Dr Pepper and PepsiCo are two major players in the beverage industry, competing for market share and investor attention. Keurig Dr Pepper, the result of a merger between Keurig Green Mountain and Dr Pepper Snapple Group, offers a diverse portfolio of brands including Dr Pepper, Snapple, and Keurig coffee products. PepsiCo, on the other hand, is a well-established company with popular brands like Pepsi, Gatorade, and Frito-Lay snacks. Both companies have proven track records of financial performance, but each has unique strengths and challenges that may influence their respective stock prices. Investors should consider factors such as brand power, market trends, and potential growth opportunities when evaluating these stocks.

Keurig Dr Pepper or PepsiCo?

When comparing Keurig Dr Pepper and PepsiCo, 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 PepsiCo.

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 2.59%, while PepsiCo has a dividend yield of 3.35%. 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, PepsiCo reports a 5-year dividend growth of 6.63% year and a payout ratio of 75.99%.

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 20.13 and PepsiCo's P/E ratio at 23.32. 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 1.84 while PepsiCo's P/B ratio is 11.22.

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 PepsiCo's is 0.45%. 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 PepsiCo's ROE at 48.96%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $33.62 for Keurig Dr Pepper and $157.97 for PepsiCo. Over the past year, Keurig Dr Pepper's prices ranged from $28.62 to $38.28, with a yearly change of 33.75%. PepsiCo's prices fluctuated between $155.85 and $183.41, with a yearly change of 17.68%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.