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KO vs PEP
Which Stock Would AI Choose? The Coca-Cola Company (KO) vs. PepsiCo, Inc. (PEP) Stock Comparison
Key Takeaways
- The Coca-Cola Company (KO) has delivered stronger year-to-date performance compared to PepsiCo, Inc. (PEP), with KO returning approximately 18% versus PEP’s roughly 3% amid broader market conditions.
- KO recently experienced a sharp single-day decline linked to a ransomware incident affecting its fairlife unit, while PEP has faced ongoing pressure from softer consumer spending in snacks and beverages.
- Both companies operate in the consumer staples sector with resilient business models, though KO maintains higher net margins while PEP offers greater product diversification through snacks.
- Analyst sentiment remains constructive for KO with multiple price target increases in recent weeks, whereas PEP has seen some target reductions amid volume concerns.
- Relative momentum favors KO in recent market activity, supported by consistent organic growth and defensive characteristics, while PEP contends with near-term headwinds in North American volumes.
- Market positioning highlights a trade-off between KO’s focused beverage strength and PEP’s broader exposure across food and drink categories.
Introduction
The Coca-Cola Company (KO) and PepsiCo, Inc. (PEP) represent two of the most established names in the global beverage and consumer staples space. Investors and traders often compare these stocks to assess relative performance within a defensive sector that tends to exhibit lower volatility than the broader market. This analysis examines recent price behavior, business fundamentals, and market sentiment to provide a factual overview relevant to those evaluating portfolio allocation between these two large-cap equities. The comparison draws on observable data from the past several weeks alongside longer-term context to remain useful for ongoing market monitoring.
KO Overview and Recent Performance
The Coca-Cola Company (KO) is a leading global beverage company with a portfolio centered on carbonated soft drinks, juices, waters, and dairy alternatives. Its capital-light franchised bottling model supports high margins and consistent cash generation. In recent market activity, KO shares reached elevated levels near all-time highs earlier in the period before retreating following a technology disruption at the fairlife unit. The stock closed at $81.56 on July 17, reflecting a 3.96% single-day decline amid the incident, though analysts from multiple firms reaffirmed buy ratings and raised price targets in the preceding weeks. Year-to-date returns stand near 18%, outpacing the S&P 500, supported by organic sales growth and earnings beats in prior quarters.
PEP Overview and Recent Performance
PepsiCo, Inc. (PEP) is a diversified consumer staples company spanning beverages and a substantial snacks portfolio, including iconic brands across chips and convenience foods. This dual exposure provides additional revenue streams but also introduces sensitivity to retail and consumer discretionary spending patterns. In recent weeks, PEP shares have traded under pressure, closing at $137.12 on July 17 after a 1.66% decline, with year-to-date returns around 3%. The company reported mixed quarterly results earlier in the period, with revenue slightly ahead of expectations but earnings missing estimates amid softer North American volumes. Analysts have adjusted some price targets lower while the stock remains below its February highs.
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Head-to-Head Comparison
The Coca-Cola Company (KO) operates a more concentrated beverage-focused model that has translated into superior net margins near 29% versus PepsiCo, Inc. (PEP)’s approximately 11%. KO’s recent momentum has benefited from repeated earnings outperformance and analyst upgrades, while PEP has navigated volume softness in snacks alongside broader consumer caution. Both firms maintain global distribution networks and dividend aristocrat status, yet PEP’s diversification into foods provides a buffer against pure beverage cyclicality at the cost of added operational complexity. Sector exposure remains aligned within consumer staples, though KO’s narrower focus has coincided with stronger relative returns in the current environment. Sentiment indicators show continued institutional support for KO despite the recent fairlife-related volatility.
Tickeron AI Verdict
Based on observable factors including trend consistency, margin stability, and recent relative positioning, Tickeron’s AI would currently assign a higher probabilistic preference to The Coca-Cola Company (KO). KO’s stronger year-to-date performance, repeated earnings beats, and analyst target revisions provide a more consistent backdrop compared with PEP’s volume pressures. This assessment remains probabilistic and tied to prevailing data rather than forward guarantees.
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 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).
KO’s FA Score shows that 3 FA rating(s) are green whilePEP’s FA Score has 2 green FA rating(s).
- KO’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.
KO’s TA Score shows that 3 TA indicator(s) are bullish while PEP’s TA Score has 3 bullish TA indicator(s).
- KO’s TA Score: 3 bullish, 4 bearish.
- PEP’s TA Score: 3 bullish, 5 bearish.
Price Growth
KO (@Beverages: Non-Alcoholic) experienced а +0.85% price change this week, while PEP (@Beverages: Non-Alcoholic) price change was -0.35% for the same time period.
The average weekly price growth across all stocks in the @Beverages: Non-Alcoholic industry was -3.20%. For the same industry, the average monthly price growth was -2.82%, and the average quarterly price growth was -4.35%.
Reported Earning Dates
KO is expected to report earnings on Jul 28, 2026.
PEP is expected to report earnings on Oct 13, 2026.
Industries' Descriptions
@Beverages: Non-Alcoholic (-3.20% 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.
| KO | PEP | KO / PEP | |
| Capitalization | 354B | 186B | 190% |
| EBITDA | 19.2B | 18.6B | 103% |
| Gain YTD | 19.225 | -2.933 | -656% |
| P/E Ratio | 25.86 | 17.91 | 144% |
| Revenue | 49.3B | 96.9B | 51% |
| Total Cash | N/A | 10.7B | - |
| Total Debt | 43.9B | 53.2B | 83% |
KO | PEP | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 83 | 58 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 53 Fair valued | 16 Undervalued | |
PROFIT vs RISK RATING 1..100 | 8 | 84 | |
SMR RATING 1..100 | 22 | 19 | |
PRICE GROWTH RATING 1..100 | 32 | 60 | |
P/E GROWTH RATING 1..100 | 42 | 83 | |
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 (53). This means that PEP’s stock grew somewhat faster than KO’s over the last 12 months.
KO's Profit vs Risk Rating (8) in the Beverages Non Alcoholic industry is significantly better than the same rating for PEP (84). This means that KO’s stock grew significantly faster than PEP’s over the last 12 months.
PEP's SMR Rating (19) in the Beverages Non Alcoholic industry is in the same range as KO (22). 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 (60). This means that KO’s stock grew similarly to PEP’s over the last 12 months.
KO's P/E Growth Rating (42) in the Beverages Non Alcoholic industry is somewhat better than the same rating for PEP (83). This means that KO’s stock grew somewhat faster than PEP’s over the last 12 months.
| KO | PEP | |
|---|---|---|
| RSI ODDS (%) | N/A | N/A |
| Stochastic ODDS (%) | 2 days ago 42% | 2 days ago 52% |
| Momentum ODDS (%) | 2 days ago 44% | 2 days ago 48% |
| MACD ODDS (%) | 2 days ago 39% | 2 days ago 55% |
| TrendWeek ODDS (%) | 2 days ago 41% | 2 days ago 44% |
| TrendMonth ODDS (%) | 2 days ago 40% | 2 days ago 47% |
| Advances ODDS (%) | 13 days ago 41% | 24 days ago 39% |
| Declines ODDS (%) | 11 days ago 30% | 5 days ago 47% |
| BollingerBands ODDS (%) | 2 days ago 41% | 2 days ago 57% |
| Aroon ODDS (%) | 2 days ago 34% | 2 days ago 35% |
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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% | +1.25% | ||
| KDP - PEP | 44% Loosely correlated | +0.03% | ||
| CCEP - PEP | 40% Loosely correlated | +1.44% | ||
| FIZZ - PEP | 31% Poorly correlated | +0.56% | ||
| MNST - PEP | 28% Poorly correlated | -0.07% | ||
| COKE - PEP | 24% Poorly correlated | +3.65% | ||
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