Comparing Keurig Dr Pepper (KDP) and Its Peers

Keurig Dr Pepper (NASDAQ:KDPGet Rating) is one of 30 publicly-traded companies in the “Beverages” industry, but how does it contrast to its competitors? We will compare Keurig Dr Pepper to similar companies based on the strength of its risk, institutional ownership, earnings, valuation, profitability, dividends and analyst recommendations.

Earnings & Valuation

This table compares Keurig Dr Pepper and its competitors top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Keurig Dr Pepper $12.68 billion $2.15 billion 25.09
Keurig Dr Pepper Competitors $11.07 billion $1.69 billion -112.09

Keurig Dr Pepper has higher revenue and earnings than its competitors. Keurig Dr Pepper is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Dividends

Keurig Dr Pepper pays an annual dividend of $0.75 per share and has a dividend yield of 2.0%. Keurig Dr Pepper pays out 50.0% of its earnings in the form of a dividend. As a group, “Beverages” companies pay a dividend yield of 1.3% and pay out 102.9% of their earnings in the form of a dividend. Keurig Dr Pepper is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

Profitability

This table compares Keurig Dr Pepper and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Keurig Dr Pepper 16.92% 9.35% 4.53%
Keurig Dr Pepper Competitors -11.45% -22.68% -11.85%

Analyst Recommendations

This is a breakdown of current ratings and target prices for Keurig Dr Pepper and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Keurig Dr Pepper 0 5 3 0 2.38
Keurig Dr Pepper Competitors 278 1294 1458 32 2.41

Keurig Dr Pepper presently has a consensus target price of $38.43, indicating a potential upside of 2.12%. As a group, “Beverages” companies have a potential upside of 91.68%. Given Keurig Dr Pepper’s competitors stronger consensus rating and higher probable upside, analysts plainly believe Keurig Dr Pepper has less favorable growth aspects than its competitors.

Insider and Institutional Ownership

49.5% of Keurig Dr Pepper shares are owned by institutional investors. Comparatively, 36.3% of shares of all “Beverages” companies are owned by institutional investors. 1.0% of Keurig Dr Pepper shares are owned by company insiders. Comparatively, 17.8% of shares of all “Beverages” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Risk & Volatility

Keurig Dr Pepper has a beta of 0.66, meaning that its stock price is 34% less volatile than the S&P 500. Comparatively, Keurig Dr Pepper’s competitors have a beta of 0.71, meaning that their average stock price is 29% less volatile than the S&P 500.

Summary

Keurig Dr Pepper beats its competitors on 9 of the 15 factors compared.

About Keurig Dr Pepper (Get Rating)

Keurig Dr Pepper Inc. operates as a beverage company in the United States and internationally. It operates through Coffee Systems, Packaged Beverages, Beverage Concentrates, and Latin America Beverages segments. The Coffee Systems segment manufactures and distributes various finished goods related to its coffee systems, K-Cup pods, and brewers, as well as specialty coffee. This segment sells its brewers through third-party distributors and retail partners, as well as through its website at keurig.com. The Packaged Beverages segment engages in the manufacture and distribution of packaged beverages of its brands; contract manufacturing of various private label and emerging brand beverages; and distribution of packaged beverages for its partner brands. The Beverage Concentrates segment manufactures and sells beverage concentrates primarily under the Dr Pepper, Canada Dry, A&W, 7UP, Sunkist, Squirt, Big Red, RC Cola, Vernors, Snapple, Mott's, Bai, Hawaiian Punch, Clamato, Yoo-Hoo, Core, ReaLemon, evian, Vita Coco, and Mr and Mrs T mixers brands. This segment also manufactures beverage concentrates into syrup. The Latin America Beverages segment manufactures and distributes carbonated mineral water, flavored carbonated soft drinks, bottled water, and vegetable juice products under the Peñafiel, Clamato, Squirt, Dr Pepper, Crush, and Aguafiel brands. The company serves retailers, bottlers and distributors, restaurants, hotel chains, office coffee distributors, and end-use consumers. Keurig Dr Pepper Inc. was founded in 1981 and is headquartered in Burlington, Massachusetts.

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