PepsiCo vs Unilever Which Is More Lucrative?

PepsiCo and Unilever are two global consumer goods giants that have long been considered attractive investment opportunities in the stock market. While PepsiCo is primarily known for its range of beverage products, Unilever is a diversified company with a presence in food, personal care, and home care products. Both companies have strong track records of delivering consistent growth and dividends to their shareholders. Investors often compare the performance of PepsiCo and Unilever stocks to assess their potential for long-term returns and stability in their portfolios.

PepsiCo or Unilever?

When comparing PepsiCo and Unilever, 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 Unilever.

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 3.38%, while Unilever has a dividend yield of 3.0%. 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, Unilever reports a 5-year dividend growth of 0.22% year and a payout ratio of 64.35%.

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 23.15 and Unilever's P/E ratio at 21.20. 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 11.14 while Unilever's P/B ratio is 6.94.

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 Unilever's is 0.24%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with PepsiCo's ROE at 48.96% and Unilever's ROE at 34.58%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $157.70 for PepsiCo and $58.90 for Unilever. Over the past year, PepsiCo's prices ranged from $155.85 to $183.41, with a yearly change of 17.68%. Unilever's prices fluctuated between $46.46 and $65.87, with a yearly change of 41.78%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.