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KDP vs PEP
Which Stock Would AI Choose? Keurig Dr Pepper (KDP) vs. PepsiCo (PEP) Stock Comparison
Key Takeaways
- Keurig Dr Pepper (KDP) reported substantial Q2 2026 revenue growth of 75.6% year-over-year, largely driven by the JDE Peet’s acquisition, while PepsiCo (PEP) posted more modest 6.4% net revenue growth.
- KDP’s U.S. Refreshment Beverages segment delivered double-digit gains, supported by volume increases in energy and sports drinks, contrasting with PEP’s softer North American snacks performance amid broader consumer pressures.
- KDP trades at a higher trailing P/E ratio near 31 compared to PEP’s approximately 17, reflecting differences in growth profiles and market positioning within the consumer staples sector.
- Both companies maintain dividend programs, with KDP recently declaring a quarterly payout of $0.23 per share and PEP offering a higher yield around 4.5%.
- KDP continues toward a planned early 2027 separation into separate beverage and coffee entities, while PEP focuses on portfolio optimization including select facility adjustments.
- Recent market activity shows KDP with stronger year-to-date price performance relative to PEP amid differing momentum in their core segments.
Introduction
Keurig Dr Pepper (KDP) and PepsiCo (PEP) represent two prominent players in the non-alcoholic beverages and consumer staples space, offering investors exposure to established brands with varying growth trajectories and scale. This comparison examines their business models, recent financial results, and relative stock performance to assist traders and long-term investors evaluating positioning within defensive sectors. Market participants focused on dividend income, acquisition-driven expansion, or stability in consumer staples may find the analysis relevant when assessing portfolio allocation between mid-cap and large-cap beverage names.
Keurig Dr Pepper (KDP) Overview and Recent Performance
Keurig Dr Pepper (KDP) operates as a leading producer of beverages and coffee products, with key brands spanning refreshment drinks and single-serve coffee systems. Recent market activity highlights the impact of the JDE Peet’s acquisition, which contributed significantly to Q2 2026 consolidated net sales reaching $7.31 billion, up 75.6% year-over-year. Legacy operations posted solid constant-currency growth in the 4-6% range, led by U.S. Refreshment Beverages volume gains in energy and hydration categories. Sentiment has been supported by reaffirmed full-year guidance and progress on integration synergies, though the company’s planned early 2027 separation into distinct beverage and coffee entities introduces additional focus on execution. Stock levels have reflected these developments amid broader sector movements.
PepsiCo (PEP) Overview and Recent Performance
PepsiCo (PEP) is a diversified global consumer staples company with major positions in beverages and convenient foods through iconic brands. In Q2 2026, the company reported net revenue of $24.18 billion, reflecting 6.4% growth and 2.4% organic performance, with international markets providing notable support. Management affirmed fiscal 2026 guidance for organic revenue growth of 2-4% and core constant-currency EPS expansion of 4-6%. Recent activity includes operational adjustments such as facility optimizations and board appointments, alongside ongoing portfolio evolution toward functional and portion-controlled options. Stock behavior has incorporated these updates alongside sector-wide considerations, maintaining a focus on consistent dividend distributions.
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Head-to-Head Comparison
Keurig Dr Pepper (KDP) and PepsiCo (PEP) differ markedly in scale and growth drivers. KDP benefits from acquisition-fueled expansion and targeted momentum in U.S. refreshment beverages, while PEP leverages global diversification across beverages and snacks with steadier but lower organic growth. Business models contrast a more concentrated beverage and coffee focus for KDP against PEP’s broader convenient foods exposure, which introduces different sensitivities to consumer trends. Recent momentum favors KDP’s reported top-line acceleration, though PEP maintains advantages in market capitalization and dividend yield. Risk factors include KDP’s integration and separation execution alongside PEP’s potential snack category pressures. Sector exposure remains aligned in consumer staples, yet market sentiment has reflected KDP’s higher volatility tied to deal activity versus PEP’s defensive stability.
Tickeron AI Verdict
Based on observable factors such as trend consistency in recent quarters, acquisition-related catalysts, and relative positioning in growth metrics, Tickeron’s AI models would currently assign a probabilistic preference toward Keurig Dr Pepper (KDP) over PepsiCo (PEP). This assessment incorporates stronger reported revenue expansion and segment-level volume gains for KDP, balanced against PEP’s scale and income characteristics. The outlook remains probabilistic and subject to evolving market data rather than a definitive recommendation.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
To compare these two companies we present long-term analysis, their fundamental ratings and make comparative short-term technical analysis which are presented below. The conclusion is KDP is a Hold and PEP is a Hold.
KDP | PEP | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 63 | 52 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 28 Undervalued | 16 Undervalued | |
PROFIT vs RISK RATING 1..100 | 93 | 100 | |
SMR RATING 1..100 | 82 | 20 | |
PRICE GROWTH RATING 1..100 | 48 | 62 | |
P/E GROWTH RATING 1..100 | 19 | 82 | |
SEASONALITY SCORE 1..100 | 75 | 50 |
Tickeron ratings are formulated such that a rating of 1 designates the most successful stocks in a given industry, while a rating of 100 points to the least successful stocks for that industry.
PEP's Valuation (16) in the Beverages Non Alcoholic industry is in the same range as KDP (28). This means that PEP’s stock grew similarly to KDP’s over the last 12 months.
KDP's Profit vs Risk Rating (93) in the Beverages Non Alcoholic industry is in the same range as PEP (100). This means that KDP’s stock grew similarly to PEP’s over the last 12 months.
PEP's SMR Rating (20) in the Beverages Non Alcoholic industry is somewhat better than the same rating for KDP (82). This means that PEP’s stock grew somewhat faster than KDP’s over the last 12 months.
KDP's Price Growth Rating (48) in the Beverages Non Alcoholic industry is in the same range as PEP (62). This means that KDP’s stock grew similarly to PEP’s over the last 12 months.
KDP's P/E Growth Rating (19) in the Beverages Non Alcoholic industry is somewhat better than the same rating for PEP (82). This means that KDP’s stock grew somewhat faster than PEP’s over the last 12 months.
| KDP | PEP | |
|---|---|---|
| RSI ODDS (%) | N/A | 3 days ago 41% |
| Stochastic ODDS (%) | 3 days ago 42% | 3 days ago 58% |
| Momentum ODDS (%) | 3 days ago 61% | 3 days ago 41% |
| MACD ODDS (%) | 3 days ago 53% | 3 days ago 49% |
| TrendWeek ODDS (%) | 3 days ago 51% | 3 days ago 45% |
| TrendMonth ODDS (%) | 3 days ago 47% | 3 days ago 48% |
| Advances ODDS (%) | 22 days ago 54% | N/A |
| Declines ODDS (%) | 4 days ago 47% | 4 days ago 47% |
| BollingerBands ODDS (%) | N/A | 3 days ago 48% |
| Aroon ODDS (%) | 3 days ago 42% | 3 days ago 43% |
Long-Term Analysis
It is best to consider a long-term outlook for a ticker by using Fundamental Analysis (FA) ratings. The rating of 1 to 100, where 1 is best and 100 is worst, is divided into thirds. The first third (a green rating of 1-33) indicates that the ticker is undervalued; the second third (a grey number between 34 and 66) means that the ticker is valued fairly; and the last third (red number of 67 to 100) reflects that the ticker is overvalued. We use an FA Score to show how many ratings show the ticker to be undervalued (green) or overvalued (red).
KDP’s FA Score shows that 2 FA rating(s) are green while PEP’s FA Score has 2 green FA rating(s).
- KDP’s FA Score: 2 green, 3 red.
- PEP’s FA Score: 2 green, 3 red.
Short-Term Analysis
It is best to consider a short-term outlook for a ticker by using Technical Analysis (TA) indicators. We use Odds of Success as the percentage of outcomes which confirm successful trade signals in the past.
If the Odds of Success (the likelihood of the continuation of a trend) for each indicator are greater than 50%, then the generated signal is confirmed. A green percentage from 90% to 51% indicates that the ticker is in a bullish trend. A red percentage from 90% - 51% indicates that the ticker is in a bearish trend. All grey percentages are below 50% and are considered not to confirm the trend signal.
KDP’s TA Score shows that 5 TA indicator(s) are bullish while PEP’s TA Score has 3 bullish TA indicator(s).
- KDP’s TA Score: 5 bullish, 3 bearish.
- PEP’s TA Score: 3 bullish, 6 bearish.
Price Growth
KDP (@Beverages: Non-Alcoholic) experienced а -0.13% price change this week, while PEP (@Beverages: Non-Alcoholic) price change was -3.10% for the same time period.
The average weekly price growth across all stocks in the @Beverages: Non-Alcoholic industry was -3.07%. For the same industry, the average monthly price growth was -9.33%, and the average quarterly price growth was -5.73%.
Reported Earning Dates
KDP is expected to report earnings on Oct 22, 2026.
PEP is expected to report earnings on Oct 08, 2026.
Industries' Descriptions
@Beverages: Non-Alcoholic (-3.07% weekly)Non-alcoholic drinks include traces of alcohol or low alcohol content or without alcohol or alcohol removed. Functional Beverages, Carbonated Soft Drinks (CSDs), Sports Drinks, Fruit Beverages, and Bottled Water are some common types of non-alcoholic beverages. The largest segment in this market is soft drinks (think Pepsi and Coke). Many established companies in this space have also been stepping up production of low to zero-calorie varieties in recent years, to cater to a rising number of health-conscious consumers. Coca-Cola Company, Pepsico Inc, Keurig Dr Pepper Inc. and Monster Beverage Corporation are some major non-alcoholic beverage makers.
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KDP and
Correlation & Price change
A.I.dvisor indicates that over the last year, KDP has been loosely correlated with PEP. These tickers have moved in lockstep 46% of the time. This A.I.-generated data suggests there is some statistical probability that if KDP jumps, then PEP could also see price increases.
| Ticker / NAME | Correlation To KDP | 1D Price Change % | ||
|---|---|---|---|---|
| KDP | 100% | +2.91% | ||
| PEP - KDP | 46% Loosely correlated | +1.23% | ||
| FIZZ - KDP | 41% Loosely correlated | -0.86% | ||
| MNST - KDP | 32% Poorly correlated | +0.61% | ||
| CCEP - KDP | 30% Poorly correlated | +1.77% | ||
| COKE - KDP | 29% Poorly correlated | +0.57% | ||
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PEP and
Correlation & Price change
A.I.dvisor indicates that over the last year, PEP has been loosely correlated with CCEP. These tickers have moved in lockstep 48% of the time. This A.I.-generated data suggests there is some statistical probability that if PEP jumps, then CCEP could also see price increases.
| Ticker / NAME | Correlation To PEP | 1D Price Change % | ||
|---|---|---|---|---|
| PEP | 100% | -0.77% | ||
| CCEP - PEP | 48% Loosely correlated | -2.56% | ||
| KDP - PEP | 47% Loosely correlated | +0.79% | ||
| FIZZ - PEP | 31% Poorly correlated | -1.51% | ||
| MNST - PEP | 28% Poorly correlated | -0.81% | ||
| KO - PEP | 27% Poorly correlated | -0.59% | ||
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