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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 in upward trend: price rose above 50-day moving average on October 08, 2026
KDP moved above its 50-day moving average on October 08, 2026 date and that indicates a change from a downward trend to an upward trend. In 27 of 42 similar past instances, the stock price increased further within the following month. The odds of a continued upward trend are 64%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 08, 2026. You may want to consider a long position or call options on KDP as a result. In 43 of 90 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 48%.
The Moving Average Convergence Divergence (MACD) for KDP just turned positive on October 09, 2026. Looking at past instances where KDP's MACD turned positive, the stock continued to rise in 30 of 48 cases over the following month. The odds of a continued upward trend are 62%.
The 10-day moving average for KDP crossed bullishly above the 50-day moving average on October 13, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 11 of 18 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 61%.
Following a +4.77% 3-day Advance, the price is estimated to grow further. Considering data from situations where KDP advanced for three days, in 172 of 322 cases, the price rose further within the following month. The odds of a continued upward trend are 53%.
Bearish Trend Analysis
The Stochastic Oscillator has been in the overbought zone for 1 day. Expect a price pull-back in the near future.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where KDP declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 48%.
KDP broke above its upper Bollinger Band on October 12, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for KDP entered a downward trend on October 09, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron PE Growth Rating for this company is 14 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of 28 (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.710) is normal, around the industry mean (6.793). P/E Ratio (31.778) is within average values for comparable stocks, (43.051). Projected Growth (PEG Ratio) (0.971) is also within normal values, averaging (3.732). Dividend Yield (0.029) settles around the average of (0.014) among similar stocks. P/S Ratio (2.158) is also within normal values, averaging (2.785).
The Tickeron Price Growth Rating for this company is 29 (best 1 - 100 worst), indicating outstanding price growth. KDP’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of 40 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron SMR rating for this company is 82 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is 89 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. KDP’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 75, placing this stock worse than average.
PEP in upward trend: price may ascend as a result of having broken its lower Bollinger Band on September 16, 2026
PEP may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options. In 23 of 42 cases where PEP's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued upward trend are 55%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where PEP's RSI Indicator exited the oversold zone, 9 of 27 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 33%.
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. 27 of 63 cases where PEP's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 43%.
The Moving Average Convergence Divergence (MACD) for PEP just turned positive on October 09, 2026. Looking at past instances where PEP's MACD turned positive, the stock continued to rise in 21 of 46 cases over the following month. The odds of a continued upward trend are 46%.
Following a +1.06% 3-day Advance, the price is estimated to grow further. Considering data from situations where PEP advanced for three days, in 115 of 296 cases, the price rose further within the following month. The odds of a continued upward trend are 39%.
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on October 09, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on PEP as a result. In 47 of 91 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 52%.
PEP moved below its 50-day moving average on September 09, 2026 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for PEP crossed bearishly below the 50-day moving average on September 10, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 7 of 17 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 41%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where PEP declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 48%.
The Aroon Indicator for PEP entered a downward trend on October 13, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron Valuation Rating of 16 (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (7.937) is normal, around the industry mean (6.793). P/E Ratio (16.841) is within average values for comparable stocks, (43.051). Projected Growth (PEG Ratio) (1.316) is also within normal values, averaging (3.732). PEP has a moderately high Dividend Yield (0.045) as compared to the industry average of (0.014). P/S Ratio (1.901) is also within normal values, averaging (2.785).
The Tickeron SMR rating for this company is 20 (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Seasonality Score of 50 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Price Growth Rating for this company is 61 (best 1 - 100 worst), indicating fairly steady price growth. PEP’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is 81 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. PEP’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 75, placing this stock worse than average.
KDP | PEP | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 25 | 12 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 28 Undervalued | 16 Undervalued | |
PROFIT vs RISK RATING 1..100 | 89 | 100 | |
SMR RATING 1..100 | 82 | 20 | |
PRICE GROWTH RATING 1..100 | 29 | 61 | |
P/E GROWTH RATING 1..100 | 14 | 81 | |
SEASONALITY SCORE 1..100 | 40 | 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 (89) 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 (29) in the Beverages Non Alcoholic industry is in the same range as PEP (61). This means that KDP’s stock grew similarly to PEP’s over the last 12 months.
KDP's P/E Growth Rating (14) in the Beverages Non Alcoholic industry is significantly better than the same rating for PEP (81). This means that KDP’s stock grew significantly faster than PEP’s over the last 12 months.
| KDP | PEP | |
|---|---|---|
| RSI ODDS (%) | N/A | 1 day ago 33% |
| Stochastic ODDS (%) | 1 day ago 51% | 1 day ago 43% |
| Momentum ODDS (%) | 1 day ago 48% | 1 day ago 52% |
| MACD ODDS (%) | 1 day ago 63% | 1 day ago 46% |
| TrendWeek ODDS (%) | 1 day ago 50% | 1 day ago 41% |
| TrendMonth ODDS (%) | 1 day ago 49% | 1 day ago 48% |
| Advances ODDS (%) | 3 days ago 53% | 1 day ago 39% |
| Declines ODDS (%) | 15 days ago 48% | 14 days ago 48% |
| BollingerBands ODDS (%) | 1 day ago 45% | 1 day ago 55% |
| Aroon ODDS (%) | 1 day ago 37% | 1 day 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 3 FA rating(s) are green while PEP’s FA Score has 2 green FA rating(s).
- KDP’s FA Score: 3 green, 2 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 5 bullish TA indicator(s).
- KDP’s TA Score: 5 bullish, 4 bearish.
- PEP’s TA Score: 5 bullish, 5 bearish.
Price Growth
KDP (@Beverages: Non-Alcoholic) experienced а +4.91% price change this week, while PEP (@Beverages: Non-Alcoholic) price change was +1.26% for the same time period.
The average weekly price growth across all stocks in the @Beverages: Non-Alcoholic industry was +0.13%. For the same industry, the average monthly price growth was -2.63%, and the average quarterly price growth was -10.31%.
Reported Earning Dates
KDP is expected to report earnings on Nov 03, 2026.
PEP is expected to report earnings on Feb 11, 2027.
Industries' Descriptions
@Beverages: Non-Alcoholic (+0.13% 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 47% 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% | -0.27% | ||
| PEP - KDP | 47% Loosely correlated | +0.49% | ||
| MNST - KDP | 38% Loosely correlated | -1.03% | ||
| CCEP - KDP | 37% Loosely correlated | +0.29% | ||
| FIZZ - KDP | 35% Loosely correlated | +2.61% | ||
| COKE - KDP | 30% Poorly correlated | -1.55% | ||
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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% | +0.49% | ||
| CCEP - PEP | 48% Loosely correlated | +0.29% | ||
| KDP - PEP | 47% Loosely correlated | -0.27% | ||
| FIZZ - PEP | 32% Poorly correlated | +2.61% | ||
| MNST - PEP | 29% Poorly correlated | -1.03% | ||
| COKE - PEP | 28% Poorly correlated | -1.55% | ||
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