PepsiCo Holds Advantage Over Coca-Cola in Stock Analysis

In the face of recent market downturns, PepsiCo has demonstrated greater resilience compared to Coca-Cola, particularly during the 2020 recession. Analysts highlight PepsiCo's diversified business model, which has led to higher revenue growth, better return on equity, and more substantial dividend payments. Currently, PepsiCo holds slight advantages over Coca-Cola across various financial metrics, making it a more attractive investment option. From 2019 to 2023, PepsiCo's annual revenue growth averaged 7.24%, while Coca-Cola's growth was lower at 6.40%, with a notable decline in 2020. During the pandemic, PepsiCo managed to grow its revenue by 4.80%, contrasting sharply with Coca-Cola's 11.40% revenue drop. Looking ahead, both companies are expected to see revenue growth of 4% to 5%, but PepsiCo is anticipated to outperform in the event of another recession. Despite a challenging year-to-date performance, with PepsiCo down 6% and Coca-Cola up 6%, analysts remain optimistic about a potential dividend increase for PepsiCo in 2024. Wall Street projects a 13% upside for PepsiCo, with a price target of $185, compared to Coca-Cola's 7% upside and a target of $68. While Coca-Cola has historically performed well during market declines due to its diversified revenue sources, PepsiCo's strong fundamentals and the resilience of the U.S. consumer position it favorably for future growth.