PepsiCo vs Coca-Cola: Which Has Higher Growth Potential in 2025?
When it comes to iconic beverage giants, few rival the legacy and strength of PepsiCo (PEP) and Coca-Cola (KO). But for long-term investors looking at growth potential, which company holds more promise?
We examined their financials, valuation, and historical trends through a Buffett-style lens. Here's a breakdown:
PEP vs KO: Growth & Valuation Face-off
| Category | PepsiCo (PEP) | Coca-Cola (KO) | Winner |
|---|---|---|---|
| Market Cap ($B) | 194 | 313 | KO (scale) |
| EPS Growth (5Y) | 6.01% | 3.54% | PEP |
| EPS Growth (3Y) | 7.33% | 3.01% | PEP |
| Revenue Growth (5Y) | 6.46% | 4.78% | PEP |
| Revenue Growth (3Y) | 4.94% | 6.78% | KO |
| Forecasted EPS Growth (5Y) | 4.38% | 5.96% | KO |
| PE TTM | 20.55 | 29.67 | PEP |
| PEG Ratio (TTM) | 4.70 | 4.98 | PEP |
| Price/Cash Flow | 14.58 | 26.80 | PEP |
| Net Margin | 10.48% | 22.63% | KO |
| ROE | 52.42% | 41.86% | PEP |
| ROIC | 14.10% | 14.55% | KO |
| Debt/Equity | 2.06 | 1.70 | KO |
| 5Y Total Return | 39.91% | 102.09% | KO |
| 1Y Gain | 14.68% | 23.90% | KO |
| YTD Price Change | -6.79% | 16.88% | KO |
| % Below 52W High | 22.73% | 1.60% | KO |
| PB Ratio | 10.86 | 12.63 | PEP |
Final Take: Who Wins?
Short-to-Mid Term (1–3 Years):
Coca-Cola is showing impressive near-term momentum, with a strong 1-year return, solid EPS growth forecasts, and leadership in profitability metrics like net margin and ROIC. If you're looking for current performance and brand stability, KO leads the charge.
Long-Term Growth + Valuation Discipline:
PepsiCo, on the other hand, offers better value, more consistent historical earnings growth, and a diversified business model spanning both snacks and drinks. If you're a value-focused investor with a long horizon, PEP stands out as the better long-term bet.
Investor Takeaway:
- For Growth-at-Reasonable-Price (GARP) investors: Consider PepsiCo.
- For Dividend stability and brand moat exposure: Coca-Cola remains a classic.
Both are solid investments—but in today’s market, PepsiCo may offer more upside potential at a better price.
Related Read:
Pepsi (PEP) Stock Analysis
Coke (KO) Stock Analysis
Which one are you betting on for the next decade? Let us know in the comments below or explore more Buffett-style stock breakdowns at TracknGrow.com.
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