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KO vs PEP
Which Stock Would AI Choose? Coca-Cola (KO) vs. PepsiCo (PEP) Stock Comparison
Key Takeaways
- Coca-Cola (KO) returned to volume growth in its latest quarter, while PepsiCo (PEP) is still working through North American volume declines.
- Both companies beat consensus earnings and revenue estimates in recent results, but their growth engines differ sharply.
- KO is driving growth mainly through pricing and mix, whereas PEP is leaning on portfolio reshaping, innovation, and cost discipline.
- PEP carries a higher dividend yield and is under activist-investor pressure; KO trades at a premium multiple with steadier, single-digit earnings growth.
- Relative momentum has favored KO on a year-to-date basis, though PEP has staged a notable recent rebound after its earnings release.
Introduction
Few rivalries in the consumer staples sector are as closely watched as the one between Coca-Cola and PepsiCo. Both are iconic, dividend-paying blue chips with global scale, yet their business models and near-term growth trajectories diverge in meaningful ways. KO is a beverage pure-play, while PEP combines beverages with a large snacks and convenient-foods business. For income-focused investors, defensive allocators, and traders evaluating relative performance and market positioning, this stock comparison offers a useful lens on how two leaders are navigating soft consumer demand, pricing pressure, and portfolio transformation.
KO Overview and Recent Performance
The Coca-Cola Company is the world's largest non-alcoholic beverage maker, with a portfolio spanning sparkling soft drinks, water, sports drinks, juice, coffee, tea, and dairy. In recent market activity, KO delivered third-quarter results that topped expectations, with net revenue rising about 5% year over year to roughly $12.46 billion and comparable earnings per share (EPS) growing 6%. A key positive was that global unit case volume returned to growth, rising about 1%, helped by double-digit gains in Coca-Cola Zero Sugar.
Sentiment has also been supported by resilience in pricing, with price/mix contributing a 6% lift, and by strength in the Fairlife and Core Power protein-drink lines amid rising consumer interest in protein-rich products. Management reaffirmed its full-year outlook for 5% to 6% organic revenue growth. Broader references indicate KO shares have gained roughly 14% in 2025, roughly tracking the broader market, though the stock has historically underperformed the S&P 500 over longer horizons.
PEP Overview and Recent Performance
PepsiCo is a diversified food-and-beverage giant whose brands include Pepsi, Gatorade, Lay's, Doritos, Quaker, and Tropicana. In recent weeks, PEP reported third-quarter revenue of about $23.94 billion, up 2.6% year over year, and core EPS of $2.29, both slightly above consensus. The company also named a new chief financial officer from Walmart and raised its full-year EPS outlook modestly, citing a smaller foreign-exchange headwind than previously expected.
Still, the underlying picture remains mixed. North American beverage volumes declined about 3%, and convenient-foods volumes fell in the quarter. Organic revenue grew only about 1.3%, and management reiterated guidance for roughly flat core constant-currency EPS in 2025. Investor attention has centered on a reported $4 billion activist stake from Elliott Management, which is pressing for cost reductions and potential divestitures. PEP shares have lagged the market year to date but rebounded after earnings and trade above their 50-day and 200-day moving averages.
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Head-to-Head Comparison
The most important structural contrast between these two stocks is business-model diversification. KO is concentrated in beverages, giving it a leaner, higher-margin profile but limited exposure to snacks. PEP pairs beverages with a large convenient-foods portfolio, which offers diversification but has recently weighed on volume and required heavier investment.
Growth drivers also differ. KO's recent growth has leaned on pricing, mix, and premiumization, whereas PEP is pursuing portfolio reshaping through acquisitions such as poppi and Siete, alongside innovation and cost optimization. On momentum, KO has held up more consistently on a year-to-date basis, while PEP's stronger recent rally partly reflects a turnaround narrative under activist pressure. Risk profiles diverge too: KO faces currency headwinds and maturing core brands, while PEP contends with soft North American demand, margin pressure from input costs, and restructuring uncertainty. In sector terms, both remain defensive consumer staples, but their sentiment and catalysts are not interchangeable.
Tickeron AI Verdict
Based on observable trend consistency, relative momentum, and stability of fundamentals, Tickeron's AI would likely lean toward KO in the current environment. The stock's return to volume growth, reaffirmed guidance, and steadier earnings trajectory suggest more durable trend strength than PEP's still-developing turnaround, which is more dependent on execution and activist-driven restructuring. That said, PEP's higher dividend yield, diversified portfolio, and improving post-earnings momentum could appeal to an AI strategy oriented toward mean reversion or income. In probabilistic terms, the evidence currently favors KO on stability and trend quality, while PEP presents a higher-conviction but higher-uncertainty catalyst story.
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 KO is a Hold and PEP is a Buy.
KO's Stochastic Oscillator stoops into oversold zone
The Stochastic Oscillator for KO moved into oversold territory on October 29, 2026. Be on the watch for the price uptrend or consolidation in the future. At that time, consider buying the stock or exploring call options.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 29, 2026. You may want to consider a long position or call options on KO as a result. In 32 of 79 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 41%.
KO 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.
The 10-day moving average for KO crossed bullishly above the 50-day moving average on October 15, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 7 of 15 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 47%.
Following a +1.80% 3-day Advance, the price is estimated to grow further. Considering data from situations where KO advanced for three days, in 143 of 333 cases, the price rose further within the following month. The odds of a continued upward trend are 43%.
Bearish Trend Analysis
The 10-day RSI Indicator for KO moved out of overbought territory on October 23, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 40 similar instances where the indicator moved out of overbought territory. In 12 of the 40 cases, the stock moved lower in the following days. This puts the odds of a move lower at 30%.
The Moving Average Convergence Divergence Histogram (MACD) for KO turned negative on October 29, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 49 similar instances when the indicator turned negative. In 14 of the 49 cases the stock turned lower in the days that followed. This puts the odds of success at 29%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where KO 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 28%.
KO broke above its upper Bollinger Band on October 16, 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 KO entered a downward trend on October 12, 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 Profit vs. Risk Rating rating for this company is 3 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 73, placing this stock better than average.
The Tickeron Price Growth Rating for this company is 22 (best 1 - 100 worst), indicating outstanding price growth. KO’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is 24 (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 SMR rating for this company is 24 (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 Valuation Rating of 87 (best 1 - 100 worst) indicates that the company is significantly overvalued 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 (11.047) is normal, around the industry mean (-4.271). P/E Ratio (27.874) is within average values for comparable stocks, (24.758). Projected Growth (PEG Ratio) (3.960) is also within normal values, averaging (3.732). Dividend Yield (0.023) settles around the average of (0.040) among similar stocks. KO's P/S Ratio (7.559) is slightly higher than the industry average of (2.785).
PEP in upward trend: 10-day moving average moved above 50-day moving average on October 28, 2026
The 10-day moving average for PEP crossed bullishly above the 50-day moving average on October 28, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 8 of 17 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 47%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 14, 2026. You may want to consider a long position or call options on PEP as a result. In 39 of 90 past instances where the momentum indicator moved above 0, the stock continued to climb. 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 20 of 45 cases over the following month. The odds of a continued upward trend are 44%.
PEP moved above its 50-day moving average on October 29, 2026 date and that indicates a change from a downward trend to an upward trend.
Following a +3.59% 3-day Advance, the price is estimated to grow further. Considering data from situations where PEP advanced for three days, in 115 of 295 cases, the price rose further within the following month. The odds of a continued upward trend are 39%.
Bearish Trend Analysis
The 10-day RSI Indicator for PEP moved out of overbought territory on October 23, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 31 similar instances where the indicator moved out of overbought territory. In 16 of the 31 cases, the stock moved lower in the following days. This puts the odds of a move lower at 52%.
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In 31 of 63 cases where PEP's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are 49%.
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 49%.
PEP broke above its upper Bollinger Band on October 22, 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 PEP entered a downward trend on October 16, 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 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 58 (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 Valuation Rating of 72 (best 1 - 100 worst) indicates that the company is slightly overvalued 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 (8.264) is normal, around the industry mean (-4.271). P/E Ratio (17.512) is within average values for comparable stocks, (24.758). Projected Growth (PEG Ratio) (1.316) is also within normal values, averaging (3.732). Dividend Yield (0.044) settles around the average of (0.040) among similar stocks. P/S Ratio (1.901) is also within normal values, averaging (2.785).
The Tickeron PE Growth Rating for this company is 82 (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 91 (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 73, placing this stock worse than average.
KO | PEP | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 35 | 33 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 87 Overvalued | 72 Overvalued | |
PROFIT vs RISK RATING 1..100 | 3 | 91 | |
SMR RATING 1..100 | 24 | 20 | |
PRICE GROWTH RATING 1..100 | 22 | 58 | |
P/E GROWTH RATING 1..100 | 24 | 82 | |
SEASONALITY SCORE 1..100 | 50 | 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 (72) in the Beverages Non Alcoholic industry is in the same range as KO (87). This means that PEP’s stock grew similarly to KO’s over the last 12 months.
KO's Profit vs Risk Rating (3) in the Beverages Non Alcoholic industry is significantly better than the same rating for PEP (91). This means that KO’s stock grew significantly faster than PEP’s over the last 12 months.
PEP's SMR Rating (20) in the Beverages Non Alcoholic industry is in the same range as KO (24). This means that PEP’s stock grew similarly to KO’s over the last 12 months.
KO's Price Growth Rating (22) in the Beverages Non Alcoholic industry is somewhat better than the same rating for PEP (58). This means that KO’s stock grew somewhat faster than PEP’s over the last 12 months.
KO's P/E Growth Rating (24) in the Beverages Non Alcoholic industry is somewhat better than the same rating for PEP (82). This means that KO’s stock grew somewhat faster than PEP’s over the last 12 months.
| KO | PEP | |
|---|---|---|
| RSI ODDS (%) | 1 day ago 30% | 1 day ago 52% |
| Stochastic ODDS (%) | 1 day ago 55% | 1 day ago 49% |
| Momentum ODDS (%) | 1 day ago 41% | 1 day ago 43% |
| MACD ODDS (%) | 1 day ago 29% | 1 day ago 44% |
| TrendWeek ODDS (%) | 1 day ago 33% | 1 day ago 47% |
| TrendMonth ODDS (%) | 1 day ago 42% | 1 day ago 43% |
| Advances ODDS (%) | 1 day ago 43% | 9 days ago 39% |
| Declines ODDS (%) | 4 days ago 28% | 3 days ago 49% |
| BollingerBands ODDS (%) | 1 day ago 26% | 1 day ago 52% |
| Aroon ODDS (%) | 1 day ago 20% | 1 day ago 41% |
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).
KO’s FA Score shows that 4 FA rating(s) are green while PEP’s FA Score has 1 green FA rating(s).
- KO’s FA Score: 4 green, 1 red.
- PEP’s FA Score: 1 green, 4 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.
KO’s TA Score shows that 5 TA indicator(s) are bullish while PEP’s TA Score has 5 bullish TA indicator(s).
- KO’s TA Score: 5 bullish, 5 bearish.
- PEP’s TA Score: 5 bullish, 5 bearish.
Price Growth
KO (@Beverages: Non-Alcoholic) experienced а -2.64% price change this week, while PEP (@Beverages: Non-Alcoholic) price change was -3.63% for the same time period.
The average weekly price growth across all stocks in the @Beverages: Non-Alcoholic industry was +1.63%. For the same industry, the average monthly price growth was +0.78%, and the average quarterly price growth was -11.35%.
Reported Earning Dates
KO is expected to report earnings on Feb 16, 2027.
PEP is expected to report earnings on Feb 11, 2027.
Industries' Descriptions
@Beverages: Non-Alcoholic (+1.63% 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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KO and
Correlation & Price change
A.I.dvisor tells us that KO and PEP have been poorly correlated (+31% of the time) for the last year. This A.I.-generated data suggests there is low statistical probability that KO and PEP's prices will move in lockstep.
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 50% 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% | +0.87% | ||
| CCEP - PEP | 50% Loosely correlated | -0.16% | ||
| KDP - PEP | 49% Loosely correlated | +1.06% | ||
| FIZZ - PEP | 35% Loosely correlated | +2.19% | ||
| MNST - PEP | 30% Poorly correlated | +1.51% | ||
| COKE - PEP | 27% Poorly correlated | -0.46% | ||
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