Coca-Cola vs PepsiCo stock: the numbers side by side (October 2026)
How do Coca-Cola and PepsiCo compare?
| Coca-Cola KO | PepsiCo PEP | |
|---|---|---|
| Revenue growth | 1.9%2025 | 2.3%Year to Dec 2025 |
| Operating margin | 28.7%2025 | 12.2%Year to Dec 2025 |
| Free cash flow | 5,296US$ millions · 2025 | 7,672US$ millions · Year to Dec 2025 |
| Free cash flow yield | 1.3%Today (Oct 28, 2026) | 4.7%Today (Oct 8, 2026) |
| Dividend yield | 2.3%Today (Oct 28, 2026) | 4.6%Today (Oct 8, 2026) |
| P/E, last 12 months | 26.8xToday (Oct 28, 2026) | 16.1xToday (Oct 8, 2026) |
| P/E, next 12 months | 25.8xToday (Oct 28, 2026) | 14.4xToday (Oct 8, 2026) |
| Weighted price forecast, about 1 year | 81.46 (-8 %)October 2027 | 167.75 (+35 %)October 2027 |
| Weighted price forecast, about 3 years | 82.93 (-2 %)October 2029 | 186.33 (+60 %)October 2029 |
Who leads on what?
| Leads | The lead is | |
|---|---|---|
| Revenue growth | PepsiCo | The higher figure |
| Operating margin | Coca-Cola | The higher figure |
| Free cash flow | PepsiCo | The higher figure |
| Free cash flow yield | PepsiCo | The higher figure |
| Dividend yield | PepsiCo | The higher figure |
| P/E, last 12 months | PepsiCo | The lower figure |
| P/E, next 12 months | PepsiCo | The lower figure |
| Weighted price forecast, about 1 year | PepsiCo | The higher weighted return |
| Weighted price forecast, about 3 years | PepsiCo | The higher weighted return |
What does each company do?
Coca-Cola sells branded beverages through retailers, restaurants, food-service outlets and distributors.
Coca-Cola (KO), from our memo of October 28, 2026 · Coca-Cola stock forecast
PepsiCo sells snacks, pantry foods and drinks, including Lay’s, Doritos, Quaker, Pepsi and Gatorade.
PepsiCo (PEP), from our memo of October 10, 2026 · PepsiCo stock forecast
How big are Coca-Cola and PepsiCo?
Coca-Cola’s revenue was US$13,380 million in the quarter to October 2026; PepsiCo’s was US$25,274 million in the quarter to September 2026.
How fast are Coca-Cola and PepsiCo growing, and what did their latest results show?
Revenue at Coca-Cola grew 1.9% in 2025, and revenue at PepsiCo grew 2.3% in the year to December 2025.
For the quarter ended October 2, 2026, unit-case volume grew 5% and organic revenue grew 7%. Coca-Cola Zero Sugar volume grew 16%, while comparable currency-neutral operating income grew 8%. The improvement therefore reached both demand and adjusted profit.
Coca-Cola (KO), from our memo of October 28, 2026 · Coca-Cola earnings
The latest quarter showed better sales and cash, but underlying profit improved much less than the headline suggested.
PepsiCo (PEP), from our memo of October 10, 2026 · PepsiCo earnings
How much cash do Coca-Cola and PepsiCo generate, and where does it go?
Free cash flow was US$5,296 million in 2025 for Coca-Cola and US$7,672 million in the year to December 2025 for PepsiCo. Coca-Cola’s dividend yield was 2.3% on October 28, 2026; PepsiCo’s was 4.6% on October 8, 2026.
Operating cash becomes free cash flow after capital spending. A stricter measure also subtracts stock-based compensation, because stock pay can dilute shareholders or require later spending to offset that dilution.
Coca-Cola (KO), from our memo of October 28, 2026 · Coca-Cola stock forecast
Stock compensation is not an immediate cash payment, but it gives employees something valuable and can dilute shareholders. Deducting it, along with payments to minority owners, leaves less cash for PepsiCo’s shareholders. Dividends absorbed nearly all of that adjusted amount. Cash generation is therefore strong, but the margin for debt reduction, acquisitions or reinvestment is narrow.
PepsiCo (PEP), from our memo of October 10, 2026 · PepsiCo stock forecast
What does an investor pay for Coca-Cola and PepsiCo today?
Coca-Cola traded at 26.8x the last 12 months’ earnings and 25.8x the next 12 months’ on October 28, 2026; PepsiCo traded at 16.1x the last 12 months’ earnings and 14.4x the next 12 months’ on October 8, 2026. The free cash flow yield stood at 1.3% on October 28, 2026 for Coca-Cola and 4.7% on October 8, 2026 for PepsiCo.
At $91.18 on October 28, 2026, Coca-Cola trades at 25.8 times next-12-month earnings. That price implies about $3.53 a share of earnings over that period. The eventual return will depend on the growth of those earnings and dividends, and on what a later buyer will pay.
Coca-Cola (KO), from our memo of October 28, 2026 · Coca-Cola stock forecast
This snapshot gathers the current share price, market value, enterprise value, valuation multiples, cash yield and dividend yield.
PepsiCo (PEP), from our memo of October 10, 2026 · PepsiCo dividend