Reviewing Coca-Cola Europacific Partners (NASDAQ:CCEP) and PepsiCo (NASDAQ:PEP)

Coca-Cola Europacific Partners (NASDAQ:CCEP) and PepsiCo (NASDAQ:PEP) are both large-cap consumer staples companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, risk, dividends and earnings.

Risk and Volatility

Coca-Cola Europacific Partners has a beta of 0.78, indicating that its stock price is 22% less volatile than the S&P 500. Comparatively, PepsiCo has a beta of 0.46, indicating that its stock price is 54% less volatile than the S&P 500.

Profitability

This table compares Coca-Cola Europacific Partners and PepsiCo’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Coca-Cola Europacific Partners	N/A	N/A	N/A
PepsiCo	8.23%	57.81%	10.63%

Analyst Recommendations

This is a breakdown of recent recommendations for Coca-Cola Europacific Partners and PepsiCo, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Coca-Cola Europacific Partners	1	3	4	1	2.56
PepsiCo	1	14	4	0	2.16

Coca-Cola Europacific Partners presently has a consensus target price of $92.40, indicating a potential upside of 3.14%. PepsiCo has a consensus target price of $158.13, indicating a potential upside of 12.82%. Given PepsiCo’s higher probable upside, analysts clearly believe PepsiCo is more favorable than Coca-Cola Europacific Partners.

Institutional and Insider Ownership

31.4% of Coca-Cola Europacific Partners shares are owned by institutional investors. Comparatively, 73.1% of PepsiCo shares are owned by institutional investors. 3.0% of Coca-Cola Europacific Partners shares are owned by company insiders. Comparatively, 0.1% of PepsiCo shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Coca-Cola Europacific Partners and PepsiCo”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Coca-Cola Europacific Partners	$22.12 billion	1.87	$1.53 billion	$4.86	18.43
PepsiCo	$91.85 billion	2.09	$9.58 billion	$5.49	25.53

PepsiCo has higher revenue and earnings than Coca-Cola Europacific Partners. Coca-Cola Europacific Partners is trading at a lower price-to-earnings ratio than PepsiCo, indicating that it is currently the more affordable of the two stocks.

Summary

PepsiCo beats Coca-Cola Europacific Partners on 10 of the 14 factors compared between the two stocks.

About Coca-Cola Europacific Partners

Coca-Cola Europacific Partners PLC, together with its subsidiaries, produces, distributes, and sells a range of non-alcoholic ready to drink beverages. It offers flavours, mixers, and energy drinks; soft drinks, waters, enhanced water, and isotonic drinks; and ready-to-drink tea and coffee, juices, and other drinks. The company provides its products under the Coca-Cola, Diet Coke, Coca-Cola Zero Sugar, Fanta, Sprite, Monster Energy, Coca-Cola Energy, Relentless, nalu, URGE, BURN, Kuli, REIGN, POWERADE, Appletiser, Schweppes, FINLEY, mezzo mix, Royal Bliss, Lift, Vio SCHORLE, Coca-Cola Signature Mixers, NORDIC MIST, smartwater, Chaudfontaine, AQUARIUS, VILAS del Turbon, BONAQUA, Apollinaris, Krystal, Honest, Costa Coffee, Fuzetea, CHAQWA, NESTEA, Capri-Sun, Oasis, Minute Maid, MER, and Tropico brands. In addition, it engages in the bottling and other operations. The company was formerly known as Coca-Cola European Partners plc and changed its name to Coca-Cola Europacific Partners PLC in May 2021. The company was founded in 1904 and is based in Uxbridge, the United Kingdom.

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.