PepsiCo (NASDAQ:PEP) versus LVMH-Moet Hennessy Louis Vuitton (OTC:LVMUY) Head-To-Head Review

LVMH-Moet Hennessy Louis Vuitton (OTC:LVMUY) and PepsiCo (NASDAQ:PEP) are both large-cap consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, earnings, risk, analyst recommendations, dividends, institutional ownership and profitability.

Insider and Institutional Ownership

0.3% of LVMH-Moet Hennessy Louis Vuitton shares are held by institutional investors. Comparatively, 73.1% of PepsiCo shares are held by institutional investors. 0.2% of PepsiCo shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares LVMH-Moet Hennessy Louis Vuitton and PepsiCo’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
LVMH-Moet Hennessy Louis Vuitton	N/A	N/A	N/A
PepsiCo	10.43%	58.87%	11.28%

Dividends

LVMH-Moet Hennessy Louis Vuitton pays an annual dividend of $2.29 per share and has a dividend yield of 1.9%. PepsiCo pays an annual dividend of $5.42 per share and has a dividend yield of 3.8%. PepsiCo pays out 78.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. PepsiCo has raised its dividend for 53 consecutive years. PepsiCo is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Risk and Volatility

LVMH-Moet Hennessy Louis Vuitton has a beta of 1.19, indicating that its stock price is 19% more volatile than the S&P 500. Comparatively, PepsiCo has a beta of 0.49, indicating that its stock price is 51% less volatile than the S&P 500.

Earnings & Valuation

This table compares LVMH-Moet Hennessy Louis Vuitton and PepsiCo”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
LVMH-Moet Hennessy Louis Vuitton	$91.64 billion	3.31	$13.58 billion	N/A	N/A
PepsiCo	$91.85 billion	2.16	$9.58 billion	$6.95	20.78

LVMH-Moet Hennessy Louis Vuitton has higher earnings, but lower revenue than PepsiCo.

Analyst Ratings

This is a breakdown of recent ratings for LVMH-Moet Hennessy Louis Vuitton and PepsiCo, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LVMH-Moet Hennessy Louis Vuitton	0	0	0	3	4.00
PepsiCo	1	12	6	0	2.26

PepsiCo has a consensus target price of $169.88, indicating a potential upside of 17.62%. Given PepsiCo’s higher probable upside, analysts plainly believe PepsiCo is more favorable than LVMH-Moet Hennessy Louis Vuitton.

Summary

PepsiCo beats LVMH-Moet Hennessy Louis Vuitton on 10 of the 16 factors compared between the two stocks.

About LVMH-Moet Hennessy Louis Vuitton

LVMH Moët Hennessy – Louis Vuitton, Société Européenne operates as a luxury goods company worldwide. The company offers wines, and spirits under the domaine des Lambrays, Château d’Yquem, Dom Pérignon, Ruinart, Moët & Chandon, Hennessy, Veuve Clicquot, Château Galoupet, Ardbeg, Château Cheval Blanc, Glenmorangie, Krug, Mercier, Chandon, Joseph Phelps, Newton Vineyard, Cloudy Bay, Belvedere, Colgin Cellars,Terrazas de los Andes, Bodega Numanthia, Cheval des Andes, Woodinville, Ao Yun, Clos19, Volcan de mi Tierra, and Eminente brands; and fashion and leather products under the Loewe, Moynat, Louis Vuitton, Berluti, RIMOWA, Patou, Loro Piana, FENDI, Celine, Christian Dior, Emilio Pucci, Givenchy, Kenzo, and Marc Jacobs brands. It also provides perfumes and cosmetics under the Stella by Stella Mccartney, Officine Universelle Buly, Guerlain, Acqua di Parma, Parfums Christian Dior, Givenchy Parfums, Perfumes Loewe, Benefit Cosmetics, Make Up For Ever, Kenzo Parfums, Fresh, KVD Beauty, Maison Francis Kurkdjian, Cha Ling, Fenty Beauty by Rihanna, and Olehenriksen brands; watches and jewelry under the Chaumet, Tiffany & Co., TAG Heuer, Zenith, Bulgari, Fred, Hublot, and Repossi brands; and custom-designed yachts under the Feadship brand and hotels under the Cheval Blanc brand names, as well as designs and builds luxury yachts under the Royal Van Lent brand. In addition, the company offers daily newspapers under the Les Échos brand; Belmond, a luxury tourism service; home other activities under the Cova, Jardin d’Acclimatation, Le Parisien, Connaissance des Arts, Investir, and Radio Classique brands; and selective retailing products under the DFS, La Grande Epicerie de Paris, Le Bon Marché Rive Gauche, Sephora, and Starboard Cruise Services brands, as well as operates Jardin d’Acclimatation, a leisure and theme park. LVMH Moët Hennessy – Louis Vuitton, Société Européenne was founded in 1365 and is headquartered in Paris, France.

About PepsiCo

PepsiCo, Inc. engages in the manufacture, marketing, distribution, and sale of various beverages and convenient foods worldwide. The company operates through seven segments: Frito-Lay North America; Quaker Foods North America; PepsiCo Beverages North America; Latin America; Europe; Africa, Middle East and South Asia; and Asia Pacific, Australia and New Zealand and China Region. It provides dips, cheese-flavored snacks, and spreads, as well as corn, potato, and tortilla chips; cereals, rice, pasta, mixes and syrups, granola bars, grits, oatmeal, rice cakes, and side dishes; beverage concentrates, fountain syrups, and finished goods; ready-to-drink tea, coffee, and juices; dairy products; and sparkling water makers and related products, as well as distributes alcoholic beverages under Hard MTN Dew brand. The company offers its products primarily under the Lay’s, Doritos, Fritos, Tostitos, BaiCaoWei, Cheetos, Cap’n Crunch, Life, Pearl Milling Company, Gatorade, Pepsi-Cola, Mountain Dew, Quaker, Rice-A-Roni, Aquafina, Bubly, Emperador, Diet Mountain Dew, Diet Pepsi, Gatorade Zero, Crush, Propel, Dr Pepper, Schweppes, Marias Gamesa, Ruffles, Sabritas, Saladitas, Tostitos, 7UP, Diet 7UP, H2oh!, Manzanita Sol, Mirinda, Pepsi Black, Pepsi Max, San Carlos, Toddy, Walkers, Chipsy, Kurkure, Sasko, Spekko, White Star, Smith’s, Sting, SodaStream, Lubimyj Sad, Agusha, Chudo, Domik v Derevne, Lipton, and other brands. It serves wholesale and other distributors, foodservice customers, grocery stores, drug stores, convenience stores, discount/dollar stores, mass merchandisers, membership stores, hard discounters, e-commerce retailers and authorized independent bottlers, and others through a network of direct-store-delivery, customer warehouse, and distributor networks, as well as directly to consumers through e-commerce platforms and retailers. The company was founded in 1898 and is based in Purchase, New York.