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KDP vs PEP
Which Stock Would AI Choose? Keurig Dr Pepper (KDP) vs. PepsiCo (PEP) Stock Comparison
Key Takeaways
- PepsiCo (PEP) has outperformed Keurig Dr Pepper (KDP) year-to-date (YTD, meaning from the start of the current year), delivering 10.36% returns compared to KDP's 3.77%.
- KDP trades at a lower forward price-to-earnings (P/E) ratio of 11.52 versus PEP's 18.25, indicating potentially better value relative to expected earnings.
- Both stocks offer attractive dividend yields near 3.5%, with KDP at 3.47% and PEP at 3.62%, appealing to income-focused investors.
- KDP exhibits lower volatility with a beta of 0.36 compared to PEP's 0.41, making it relatively more stable in market downturns.
- PEP recently beat Q1 earnings expectations, while KDP approaches its Q1 report with analyst anticipation for modest revenue growth.
- Technicals show PEP in a bullish trend with monthly gains, contrasting KDP's neutral stance amid recent softness.
Introduction
Keurig Dr Pepper (KDP) and PepsiCo (PEP) represent key players in the beverage sector, with KDP emphasizing coffee systems and soft drinks, and PEP offering a broader portfolio including snacks. This stock comparison is particularly relevant for consumer staples investors and traders navigating market volatility, seeking insights into relative performance, valuation, and growth potential in recent market activity. By examining business models, momentum, and sentiment, readers can better assess positioning amid evolving consumer trends and economic pressures.
KDP Overview and Recent Performance
Keurig Dr Pepper (KDP) operates as a leading beverage company, producing coffee pods, soft drinks, and emerging energy drinks through brands like Dr Pepper, 7UP, and Keurig brewers. In recent market activity, the stock has traded around $26.50, down from its 52-week high of $35.94 but above the low of $24.88, reflecting a YTD gain of 3.77%. Sentiment has been influenced by solid Q4 results where revenues beat estimates by 3.13%, driven by U.S. refreshment growth and pricing, alongside a new Ghost Energy x 7UP collaboration sparking interest. However, shares have faced pressure from cost concerns and softer volumes in recent weeks, with analysts eyeing Q1 earnings on April 23 for signs of sustained momentum. Lower beta (0.36) underscores its defensive appeal.
PEP Overview and Recent Performance
PepsiCo (PEP), a global food and beverage giant, spans sodas, sports drinks, and snacks via Pepsi, Gatorade, and Frito-Lay. Trading near $157, the stock has climbed YTD by 10.36% within a 52-week range of $127.60 to $171.48, buoyed by recent strength. Q1 FY26 earnings exceeded forecasts with EPS of $1.61 versus $1.55 expected and revenues up 8.5% year-over-year, as price cuts and a Gatorade overhaul boosted volumes. Positive sentiment stems from resilient demand and diversification, though high debt (total debt-to-equity at 244.84%) remains a watchpoint. Beta of 0.41 highlights moderate stability.
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Head-to-Head Comparison
KDP focuses on pure-play beverages and coffee, contrasting PEP's diversified model with significant snack revenues (over 50% of sales), providing broader growth drivers like Frito-Lay amid shifting drink preferences. Valuation favors KDP's lower P/E and price-to-sales, while PEP commands a premium for scale ($214B market cap vs. KDP's $36B) and ROE (43.88%). Recent momentum tilts to PEP with 3% monthly gains and bullish technicals, versus KDP's 2% decline and neutral signals. Risk factors include KDP's coffee cost exposure and PEP's leverage, but both benefit from consumer staples resilience. Market sentiment leans PEP for stability, KDP for value trade-offs in relative performance.
Tickeron AI Verdict
Tickeron's AI tools, analyzing trend consistency and catalysts, currently favor PEP over KDP. PEP's earnings beat, volume recovery, and bullish positioning suggest higher probability of near-term outperformance, despite elevated valuation. KDP offers value but lags in momentum amid upcoming earnings uncertainty.
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 Disclaimers and Limitations.
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 StrongBuy and PEP is a StrongBuy.
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 undervalued. 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 1 FA rating(s) are green whilePEP’s FA Score has 2 green FA rating(s).
- KDP’s FA Score: 1 green, 4 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 4 TA indicator(s) are bullish while PEP’s TA Score has 5 bullish TA indicator(s).
- KDP’s TA Score: 4 bullish, 4 bearish.
- PEP’s TA Score: 5 bullish, 3 bearish.
Price Growth
KDP (@Beverages: Non-Alcoholic) experienced а +3.87% price change this week, while PEP (@Beverages: Non-Alcoholic) price change was +1.66% for the same time period.
The average weekly price growth across all stocks in the @Beverages: Non-Alcoholic industry was +1.90%. For the same industry, the average monthly price growth was +1.72%, and the average quarterly price growth was +2.63%.
Reported Earning Dates
KDP is expected to report earnings on Jul 23, 2026.
PEP is expected to report earnings on Jul 09, 2026.
Industries' Descriptions
@Beverages: Non-Alcoholic (+1.90% 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.
| KDP | PEP | KDP / PEP | |
| Capitalization | 43.1B | 197B | 22% |
| EBITDA | 4.05B | 16.3B | 25% |
| Gain YTD | 15.155 | 2.487 | 609% |
| P/E Ratio | 23.49 | 22.65 | 104% |
| Revenue | 16.9B | 95.4B | 18% |
| Total Cash | 898M | 10.8B | 8% |
| Total Debt | 25.7B | 52.7B | 49% |
KDP | PEP | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 28 | 13 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 22 Undervalued | 19 Undervalued | |
PROFIT vs RISK RATING 1..100 | 98 | 75 | |
SMR RATING 1..100 | 80 | 22 | |
PRICE GROWTH RATING 1..100 | 47 | 58 | |
P/E GROWTH RATING 1..100 | 75 | 36 | |
SEASONALITY SCORE 1..100 | 50 | 75 |
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 (19) in the Beverages Non Alcoholic industry is in the same range as KDP (22). This means that PEP’s stock grew similarly to KDP’s over the last 12 months.
PEP's Profit vs Risk Rating (75) in the Beverages Non Alcoholic industry is in the same range as KDP (98). This means that PEP’s stock grew similarly to KDP’s over the last 12 months.
PEP's SMR Rating (22) in the Beverages Non Alcoholic industry is somewhat better than the same rating for KDP (80). This means that PEP’s stock grew somewhat faster than KDP’s over the last 12 months.
KDP's Price Growth Rating (47) in the Beverages Non Alcoholic industry is in the same range as PEP (58). This means that KDP’s stock grew similarly to PEP’s over the last 12 months.
PEP's P/E Growth Rating (36) in the Beverages Non Alcoholic industry is somewhat better than the same rating for KDP (75). This means that PEP’s stock grew somewhat faster than KDP’s over the last 12 months.
| KDP | PEP | |
|---|---|---|
| RSI ODDS (%) | 3 days ago 43% | 3 days ago 52% |
| Stochastic ODDS (%) | 3 days ago 45% | 3 days ago 38% |
| Momentum ODDS (%) | 3 days ago 42% | 3 days ago 51% |
| MACD ODDS (%) | 3 days ago 52% | 3 days ago 49% |
| TrendWeek ODDS (%) | 3 days ago 47% | 3 days ago 41% |
| TrendMonth ODDS (%) | 3 days ago 44% | 3 days ago 45% |
| Advances ODDS (%) | 5 days ago 51% | 5 days ago 40% |
| Declines ODDS (%) | 17 days ago 46% | 14 days ago 46% |
| BollingerBands ODDS (%) | 3 days ago 38% | 3 days ago 54% |
| Aroon ODDS (%) | 3 days ago 41% | 3 days ago 36% |
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PEP and
Correlation & Price change
A.I.dvisor indicates that over the last year, PEP has been loosely correlated with KDP. These tickers have moved in lockstep 44% of the time. This A.I.-generated data suggests there is some statistical probability that if PEP jumps, then KDP could also see price increases.
| Ticker / NAME | Correlation To PEP | 1D Price Change % | ||
|---|---|---|---|---|
| PEP | 100% | +0.38% | ||
| KDP - PEP | 44% Loosely correlated | +1.54% | ||
| FIZZ - PEP | 37% Loosely correlated | -0.05% | ||
| CCEP - PEP | 34% Loosely correlated | +1.69% | ||
| COKE - PEP | 30% Poorly correlated | +0.85% | ||
| MNST - PEP | 28% Poorly correlated | +0.87% | ||
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