PepsiCo vs Sysco Which Is More Reliable?

PepsiCo and Sysco are two major players in the food and beverage industry, but they operate in different sectors. PepsiCo is primarily known for its soft drinks and snacks, while Sysco is a leading distributor of food products to restaurants, healthcare facilities, and other institutions. Both companies have seen fluctuations in their stock prices in recent years, with PepsiCo benefiting from strong consumer demand for its products, while Sysco has faced challenges due to the impact of the COVID-19 pandemic on the foodservice industry. Investors interested in the food and beverage sector may find opportunities in both companies, but should consider their individual financial performance, market trends, and competitive positioning before making investment decisions.

PepsiCo or Sysco?

When comparing PepsiCo and Sysco, 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 PepsiCo and Sysco.

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. PepsiCo has a dividend yield of 3.34%, while Sysco has a dividend yield of 2.49%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. PepsiCo reports a 5-year dividend growth of 6.63% year and a payout ratio of 75.99%. On the other hand, Sysco reports a 5-year dividend growth of 6.58% year and a payout ratio of 51.82%.

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 PepsiCo P/E ratio at 23.40 and Sysco's P/E ratio at 20.54. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. PepsiCo P/B ratio is 11.26 while Sysco's P/B ratio is 18.07.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, PepsiCo has seen a 5-year revenue growth of 0.45%, while Sysco's is 0.34%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with PepsiCo's ROE at 48.96% and Sysco's ROE at 90.60%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $157.14 for PepsiCo and $80.27 for Sysco. Over the past year, PepsiCo's prices ranged from $155.85 to $183.41, with a yearly change of 17.68%. Sysco's prices fluctuated between $69.03 and $82.89, with a yearly change of 20.08%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.