PepsiCo (NASDAQ:PEP) & Baristas Coffee (OTCMKTS:BCCI) Critical Analysis

PepsiCo (NASDAQ:PEP) and Baristas Coffee (OTCMKTS:BCCI) are both consumer staples companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, risk, dividends and earnings.

Valuation and Earnings

This table compares PepsiCo and Baristas Coffee”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PepsiCo	$91.85 billion	2.24	$9.58 billion	$5.49	27.40
Baristas Coffee	$180,000.00	N/A	-$660,000.00	N/A	N/A

PepsiCo has higher revenue and earnings than Baristas Coffee.

Profitability

This table compares PepsiCo and Baristas Coffee’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PepsiCo	8.23%	57.81%	10.63%
Baristas Coffee	N/A	N/A	N/A

Analyst Ratings

This is a summary of current recommendations for PepsiCo and Baristas Coffee, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PepsiCo	1	14	4	0	2.16
Baristas Coffee	0	0	0	0	0.00

PepsiCo currently has a consensus target price of $158.7333, suggesting a potential upside of 5.54%. Given PepsiCo’s stronger consensus rating and higher possible upside, research analysts plainly believe PepsiCo is more favorable than Baristas Coffee.

Risk and Volatility

PepsiCo has a beta of 0.45, indicating that its share price is 55% less volatile than the S&P 500. Comparatively, Baristas Coffee has a beta of 0.82, indicating that its share price is 18% less volatile than the S&P 500.

Institutional & Insider Ownership

73.1% of PepsiCo shares are owned by institutional investors. 0.1% of PepsiCo shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

PepsiCo beats Baristas Coffee on 10 of the 11 factors compared between the two stocks.

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.

About Baristas Coffee

Barista Coffee Company, Inc., doing business as Baristas, operates as a specialty drive-through beverage retailer in the United States. The company offers hot and cold beverages, including specialty coffees, blended teas, and other custom drinks, as well as smoothies, fresh-baked pastries, and other confections. It also provides beverages, such as hot apple cider, hot chocolate, frozen coffees, and other products. In addition, the company promotes and sells Baristas merchandise, calendars, mugs, T-shirts, and hats. Barista Coffee Company, Inc. also sells its merchandise and other novelties through its baristas.tv Website. The company was formerly known as Innovative Communications, Inc. and changed its name to Barista Coffee Company, Inc. in May 2010. Barista Coffee Company, Inc. was founded in 1996 and is headquartered in Kent, Washington.