Also, in light of the lockdown due to coronavirus, people stocked up on products, which led to a late quarter surge in sales. As per PepsiCo Valuation by Trefis, the company’s fair price works out to about $141, thus providing a potential gain of 4%-5%. Following the Fed stimulus — which helped set a floor on fear — the market has been willing to “look through” the current weak period and take a longer-term view, with investors now mainly focusing their attention on 2021 results. Both companies are mostly known as beverage giants competing with each other. E vs pepsi who is really winning top of mind awareness in marketing soft drink top of mind awareness in marketing e vs pepsi who wins on social. It ranked as one of the largest companies worldwide in terms of market value, and one of the leading soft drink brands worldwide, with a brand value of over 11 billion U.S. dollars in 2020. Though Coca-Cola is expected to narrow its revenue gap with PepsiCo in the medium term, Pepsi is likely to still be bigger in size and more diversified. (Photo Illustration by Igor Golovniov/SOPA Images/LightRocket via Getty Images). Despite a 30% rise since the March 20 lows of this year, at the current price of around $135 per share, we believe PepsiCo stock (NASDAQ: PEP) has more upside left. Trefis is currently used by hundreds of thousands of investors, company employees, and business professionals. PepsiCo 2019 annual EPS was $5.2 , a 40.77% decline from 2018. Additionally, reduction of supply bottlenecks and effect of recent acquisitions (Sodastream) will also lead to higher sales. Health Wars How Coca Cola And Pepsico Tackle The Craze Motley Fool. Additionally, the company’s new Productivity Plan under which PEP is taking steps to cut costs, automate certain processes and improve efficiency is expected to lead to margin growth in 2021. PepsiCo 2017 annual EPS was $3.38 , a 22.48% decline from … However, the P/E multiple dropped further in the initial few months of 2020 only to recover over the recent weeks, and now stands at 26x. However, over the coming weeks, we expect continued improvement in demand and subdued growth in the number of new Covid-19 cases in the U.S. compared to the rate seen in April-May to boost market expectations. Surprisingly, the founders of Trefis discovered that along with most other people they just did not understand even the seemingly familiar companies around them: Apple, Google, Coca Cola, Walmart, GE, Ford, Gap, and others. Additionally, while PepsiCo’s revenues have steadily increased during the 2016-2019 period, Coca-Cola’s revenues have declined during this period due to refranchising of its bottling operations (franchise owners record revenues from bottling plants they own, while Coca-Cola earns fees from franchisees), with some revenue growth coming only in FY2019 with most refranchising already done. PepsiCo’s P/E multiple dropped from 33x at the end of 2017 to 26x by the end of 2019 mainly due to growth in EPS, which was coupled with a slower growth in the stock price. ... and Market Data and Analysis. Coca-Cola’s stock (NYSE: KO) price has increased by about 24% in a little over last three years, when the stock price increased from $37 at the end of 2016 to $46 as on 15th June 2020. But wait a minute, PepsiCo’s stock (NASDAQ: PEP) price has seen a much better growth at 37% during the same period. smartphone. PepsiCo, along with beverages, has a much more diversified business with almost half of its revenues coming from snacks and food products. For further insight into the food and beverage industry, find out how Keurig Dr Pepper stands in comparison to Coca-Cola. This might include you though you may have invested money in these companies, or may have been working with one of them for years as an employee, or have consulted with them as an expert for a long time. We believe that PEP’s stock could rise close to 4%-5% from its current level, driven by expectations of rising demand and easing of supply constraints following the gradual lifting of lockdowns and benefits from recent acquisitions. Opinions expressed by Forbes Contributors are their own. Coca Cola Vs Pepsi Market Share 2020. We believe that the company’s P/E ratio has the potential to see a slight increase in the near term on expectations of revival in consumer demand and favorable shareholder return policy, thus driving the stock price higher. Opinions expressed by Forbes Contributors are their own. We believe that as the lock downs are eased and there are signs of abatement of the crisis by the time of Q2 2020 results announcement, both companies could see an upside in their stock prices. Excluding items, Pepsi earned $1.07 per share. Led by MIT engineers and Wall Street analysts, Trefis (through its dashboards platform dashboards.trefis.com) helps you understand how a company's products, that you touch, read, or hear about everyday, impact its stock price. Our 5 In the S&P 500 That’ll Beat The Index: TWTR, ISRG, NFLX, NOW, V look promising. See How It’s Powering New Collaboration and What-Ifs For CFOs and Finance Teams | Product, R&D, and Marketing Teams, Led by MIT engineers and Wall Street analysts, Trefis (through its dashboards platform dashboards.trefis.com) helps you understand how a company's products, that you. PepsiCo, Inc. is the manufacturing, marketing, and distribution of grain-based snack foods, beverages, and other products. Additionally, the lockdowns in major global cities over recent months also had an adverse effect on global companies with global supply chains like PepsiCo. Coca Cola Vs Pepsi Market Share 2020. PepsiCo EPS for the quarter ending September 30, 2020 was $1.65 , a 10.74% increase year-over-year. Does the stock price movement then make sense? Since 2004, Coca-Cola Company has been the market leader, according to Statista. Let’s have a closer look at the core business prospects. So, what along with revenue is driving the difference in price rise? Please check your download folder. Please check your download folder. For further insight in to the food and beverage industry, you can see a comparative analysis of PepsiCo vs. Coca-Cola and why we feel Keurig Dr Pepper is better placed compared to Coca-Cola. PEP stock has increased from $104 to $135 off the recent bottom, less than the S&P which increased by 41% from its recent bottom. In contrast, PepsiCo has been going in for acquisitions (eg: SodaStream) to increase its revenue base, while existing brands such as Frito-Lay remain the biggest revenue and margin earner for the company. Surprisingly, the founders of Trefis discovered that along with most other people they just did not understand even the seemingly familiar companies around them: Apple, Google, Coca Cola, Walmart, GE, Ford, Gap, and others. PepsiCo annual and quarterly earnings per share history from 2006 to 2020. PepsiCo EPS for the twelve months ending September 30, 2020 was $5.06 , a 42.11% decline year-over-year. Margins shot up in 2018 due to tax benefits received, but margin in 2019 was still above the 2017 level due to benefits from the company’s cost efficiency measures. NEW YORK CITY, UNITED STATES - 2020/02/20: Coca-Cola logo seen in Midtown Manhattan. You can play with assumptions, or try scenarios, as-well-as ask questions to other users and experts. Despite a 30% rise since the March 20 lows of this year, at the current price of around $135 per share, we believe PepsiCo stock (NASDAQ: PEP) has more upside left. Similarly, Coca-Cola’s valuation gives a fair price estimate of $50 per share, higher that its current market price. Also, the management’s commitment to return $7.5 billion (dividends of $5.5 billion and share repurchases of $2 billion) to shareholders in 2020 could lead to a higher P/E and thus increase in price. All Rights Reserved, This is a BETA experience. Coca-Cola is wholly into beverages ranging from carbonated soft drinks, coffee, juices, etc. UKRAINE - 2020/03/23: In this photo illustration PepsiCo Food company logo seen displayed on a ... [+] smartphone. PepsiCo's product portfolio includes a wide range of enjoyable foods and beverages. Sure, Coca-Cola’s net income margin has increased consistently over recent years, but the one key element is the revenue. See How It’s Powering New Collaboration and What-Ifs For CFOs and Finance Teams | Product, R&D, and Marketing Teams, Led by MIT engineers and Wall Street analysts, Trefis (through its dashboards platform dashboards.trefis.com) helps you understand how a company's products, that you. While the company has already withdrawn its guidance for full-year 2020, it expects certain foreign currency headwinds to take a toll on its earnings in 2020. (Photo ... [+] Illustration by Alex Tai/SOPA Images/LightRocket via Getty Images). That’s a positive for Coca-Cola. Trefis is currently used by hundreds of thousands of investors, company employees, and business professionals. Backlinks from other websites are the lifeblood of our site and a primary source of new traffic. What’s The Likely Trigger & Timing For Further Upside? If you use our chart images on your site or blog, we ask that you provide attribution via a "dofollow" link back to this page. On a per share basis, earnings increased from $3.40 in 2017 to $5.23 in 2019. Trefis has a price estimate of $141 for PepsiCo’s stock which is higher than its current market price. has the underlying numbers. Additionally, Coca-Cola has gone for refranchising of its bottling plants (high-revenue, low-margin business), a strategy which has led to a drop in revenues while profits have gone up. PepsiCo’s revenue base has been almost double that of Coca-Cola. TrefiHow Do Core Businesses Of Coca-Cola and PepsiCo Compare? PepsiCo withdraws 2020 guidance but still expects $2 billion in share buybacks. We have provided a few examples below that you can copy and paste to your site: Your image export is now complete. It’s the revenue mix. All Rights Reserved, This is a BETA experience. The global spread of coronavirus in early 2020 affected industrial and economic activity, which affected consumption and consumer spending. Even though the stock is around 21% above the level at which it was at the end of 2017, it is still lower than its pre-Covid (February 2020) high of $147. The lock downs driven by the current crisis has taken a toll on both companies in the form of lower demand and supply bottlenecks. Additionally, the gradual lifting of lock downs is also giving investors confidence that developed markets have put the worst of the pandemic behind them. Some of the sharp stock price rise between 2017-2019 is justified by the 5.7% growth seen in PepsiCo’s revenues during this period, the effect of which was further magnified by a 42% rise in profitability, as net income margins increased from 7.7% in 2017 to 10.9% in 2019. We believe it does and our dashboard Coca-Cola vs. PepsiCo: Does The Stock Price Movement Make Sense? However, the second quarter which was expected to reflect the full impact of the crisis, saw only a 3.1% decline in PepsiCo’s revenues on y-o-y basis, though EPS saw a sharper decline of 18%.

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