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KO vs PEP
Which Stock Would AI Choose? Coca-Cola (KO) vs. PepsiCo (PEP) Stock Comparison
Key Takeaways
- KO has shown stronger recent relative performance, advancing more than 20% year-to-date, while PEP has declined by a double-digit percentage over the same period.
- The two companies have meaningfully different business mixes: KO is a beverage-focused business, while PEP combines beverages with a large snacks and convenient-foods division.
- KO is benefiting from momentum in zero-sugar and functional drinks, whereas PEP is working through weaker North American demand and margin pressure.
- PEP recently beat quarterly revenue and earnings expectations but lowered its full-year profit-growth outlook, while KO has been raising guidance on volume-led growth.
- Both remain large-cap consumer staples with well-established dividends, but their current market positioning, valuation profiles, and sentiment differ sharply.
Introduction
Coca-Cola (KO) and PepsiCo (PEP) are two of the most recognized names in global beverages, and they are frequently compared as proxies for the broader consumer staples sector. Yet despite operating in overlapping markets, the two stocks have diverged notably in recent market activity. This stock comparison is relevant for income-oriented investors evaluating defensive holdings, as well as for traders monitoring relative performance and momentum. By examining business models, recent developments, growth drivers, and risk factors, this article provides a balanced view of how these two industry leaders currently stack up against one another.
KO Overview and Recent Performance
The Coca-Cola Company is a global beverage leader with a portfolio spanning sparkling soft drinks, juices, water, sports drinks, and a growing lineup of zero-sugar and functional beverages. Unlike many peers, KO operates largely through a bottler-focused model, selling concentrates and brand rights to independent bottling partners worldwide.
In recent weeks, KO has been one of the stronger performers among large-cap consumer staples, gaining more than 20% year-to-date. This momentum has been supported by solid demand for its core brands, with Diet Coke and Coke Zero sales rising at high-single-digit to mid-teens rates in the most recent quarter. Management has also leaned into "better-for-you" offerings, including prebiotic sodas and protein beverages, to address shifting consumer preferences. The company recently outlined a $10 billion U.S. production and distribution investment plan through 2030, reinforcing its domestic supply-chain footprint. Analysts have generally maintained favorable ratings, with a consensus Buy and average price targets implying additional upside from current levels.
PEP Overview and Recent Performance
PepsiCo, Inc. operates a diversified portfolio that pairs a global beverage business—including Pepsi, Gatorade, and Mountain Dew—with a substantial convenient-foods segment anchored by brands such as Lay's, Doritos, and Quaker. This dual structure gives PEP broader exposure to the snacks category than its beverage-focused rival.
Recent market activity has been more challenging for PEP, with shares down by a double-digit percentage year-to-date and trading near their 52-week low. In its latest quarterly report, the company beat revenue and adjusted earnings expectations, with revenue rising roughly 5.6% and strong international growth. However, PEP lowered its full-year core earnings growth outlook as North American margins remained under pressure from affordability initiatives, higher input costs, and softer snack demand. Management has signaled additional structural cost reductions and a focus on reviving its North American soda and snacks performance, areas where investors continue to watch for signs of stabilization.
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Head-to-Head Comparison
The clearest contrast between the two is business mix. KO is a pure-play beverage company with a lean, bottler-centric model and high-margin concentrate sales, while PEP carries a large snacks operation that adds scale but also exposes it to weaker salty-snack demand and GLP-1 (a class of weight-loss medications) related consumption shifts.
Growth drivers also differ. KO has been capitalizing on zero-sugar, prebiotic, and protein beverages, supported by volume growth and pricing. PEP is relying on international strength and product innovation in protein, fiber, and portion-controlled snacks while it works to repair North American margins.
On momentum and sentiment, KO currently holds the advantage, with upward-trending price action and broadly positive analyst coverage. PEP trades at a lower valuation on an earnings basis and carries a higher consensus price-target upside, reflecting its depressed share price and the market's more cautious stance. Risk factors likewise diverge: PEP faces activist-investor scrutiny and execution questions, while KO faces a premium valuation and potential sensitivity to any slowdown in volume or health-related regulatory pressure.
Tickeron AI Verdict
Based on observable factors, Tickeron's AI would likely favor KO in the current environment. The stock has demonstrated more consistent relative performance, stronger trend characteristics, and clearer near-term catalysts tied to zero-sugar and functional beverage growth, alongside upward guidance momentum. In contrast, PEP presents a lower valuation and meaningful potential upside, but its price action and fundamentals reflect ongoing execution uncertainty in North America. A systematic, trend-sensitive model would therefore tend to assign a higher probability of continued outperformance to KO, while treating PEP as a value-oriented candidate dependent on a successful operational turnaround.
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 Hold.
KO in +2.34% Uptrend, growing for three consecutive days on October 13, 2026
Moving higher for three straight days is viewed as a bullish sign. Keep an eye on this stock for future growth. Considering data from situations where KO advanced for three days, in 143 of 335 cases, the price rose further within the following month. The odds of a continued upward trend are 43%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 09, 2026. You may want to consider a long position or call options on KO as a result. In 32 of 77 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 42%.
The Moving Average Convergence Divergence (MACD) for KO just turned positive on October 09, 2026. Looking at past instances where KO's MACD turned positive, the stock continued to rise in 19 of 50 cases over the following month. The odds of a continued upward trend are 38%.
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.
Bearish Trend Analysis
The Stochastic Oscillator has been in the overbought zone for 1 day. Expect a price pull-back in the near future.
The 10-day moving average for KO crossed bearishly below the 50-day moving average on October 01, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 6 of 15 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 40%.
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 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 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 4 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 75, placing this stock better than average.
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 PE Growth Rating for this company is 29 (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 Price Growth Rating for this company is 32 (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 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 71 (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 (10.373) is normal, around the industry mean (6.793). P/E Ratio (26.180) is within average values for comparable stocks, (43.051). Projected Growth (PEG Ratio) (3.960) is also within normal values, averaging (3.732). Dividend Yield (0.024) settles around the average of (0.014) among similar stocks. KO's P/S Ratio (7.559) is slightly higher than the industry average of (2.785).
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 Oscillator 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.
KO | PEP | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 86 | 12 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 71 Overvalued | 16 Undervalued | |
PROFIT vs RISK RATING 1..100 | 4 | 100 | |
SMR RATING 1..100 | 24 | 20 | |
PRICE GROWTH RATING 1..100 | 32 | 61 | |
P/E GROWTH RATING 1..100 | 29 | 81 | |
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 (16) in the Beverages Non Alcoholic industry is somewhat better than the same rating for KO (71). This means that PEP’s stock grew somewhat faster than KO’s over the last 12 months.
KO's Profit vs Risk Rating (4) in the Beverages Non Alcoholic industry is significantly better than the same rating for PEP (100). 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 (32) in the Beverages Non Alcoholic industry is in the same range as PEP (61). This means that KO’s stock grew similarly to PEP’s over the last 12 months.
KO's P/E Growth Rating (29) in the Beverages Non Alcoholic industry is somewhat better than the same rating for PEP (81). This means that KO’s stock grew somewhat faster than PEP’s over the last 12 months.
| KO | PEP | |
|---|---|---|
| RSI ODDS (%) | N/A | 1 day ago 33% |
| Stochastic ODDS (%) | 1 day ago 26% | 1 day ago 43% |
| Momentum ODDS (%) | 1 day ago 42% | 1 day ago 52% |
| MACD ODDS (%) | 1 day ago 38% | 1 day ago 46% |
| TrendWeek ODDS (%) | 1 day ago 42% | 1 day ago 41% |
| TrendMonth ODDS (%) | 1 day ago 42% | 1 day ago 48% |
| Advances ODDS (%) | 1 day ago 43% | 1 day ago 39% |
| Declines ODDS (%) | 8 days ago 28% | 14 days ago 48% |
| BollingerBands ODDS (%) | 1 day ago 26% | 1 day ago 55% |
| Aroon ODDS (%) | 1 day ago 30% | 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).
KO’s FA Score shows that 4 FA rating(s) are green while PEP’s FA Score has 2 green FA rating(s).
- KO’s FA Score: 4 green, 1 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.
KO’s TA Score shows that 4 TA indicator(s) are bullish while PEP’s TA Score has 5 bullish TA indicator(s).
- KO’s TA Score: 4 bullish, 5 bearish.
- PEP’s TA Score: 5 bullish, 5 bearish.
Price Growth
KO (@Beverages: Non-Alcoholic) experienced а +4.57% 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
KO is expected to report earnings on Oct 27, 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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