Keurig Dr Pepper vs PepsiCo
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The short version
- PepsiCo is the larger business, with $93.9B of revenue in fiscal 2025 against $16.6B for Keurig Dr Pepper, about 5.7 times as much.
- Keurig Dr Pepper grew revenue faster (8.2%, against 2.3%).
- Keurig Dr Pepper kept more of each dollar of sales as operating profit (21.5% operating margin, against 12.2%).
- Keurig Dr Pepper turned more of its sales into free cash flow (9.1% FCF margin, against 8.2%).
- PepsiCo earned a higher return on the capital invested in it (16.4%, against 6.8%).
- Investors pay more for each dollar of Keurig Dr Pepper’s earnings: a P/E of 35.0x against 17.1x for PepsiCo.
| Latest fiscal year | KDP · FY25 | PEP · FY25 |
|---|---|---|
| Size | ||
| Market cap | $47.3B | $185.6B |
| Revenue | $16.6B | $93.9B |
| Free cash flow | $1.5B | $7.7B |
| Net income | $2.1B | $8.2B |
| Growth | ||
| Revenue growth | 8.2% | 2.3% |
| 5-year growth | 7.4% | 5.9% |
| Share count change | −0.4% | −0.4% |
| Profitability | ||
| Gross margin | 54.2% | 54.2% |
| Operating margin | 21.5% | 12.2% |
| Net margin | 12.5% | 8.8% |
| FCF margin | 9.1% | 8.2% |
| Return on capital | 6.8% | 16.4% |
| Return on equity | 8.4% | 42.9% |
| Balance sheet | ||
| Net debt | $16.0B | $39.7B |
| Net debt / EBITDA | 3.9x | 2.7x |
| Dividends and buybacks | $1.3B | $8.6B |
| Valuation & quality | ||
| P/E | 35.0x | 17.1x |
| Piotroski F-score | 6 | 6 |
Revenue
FY16
KDP $6.4B
PEP $62.8B
FY17
KDP $6.7B
PEP $63.5B
FY18
KDP $7.4B
PEP $64.7B
FY19
KDP $11.1B
PEP $67.2B
FY20
KDP $11.6B
PEP $70.4B
FY21
KDP $12.7B
PEP $79.5B
FY22
KDP $14.1B
PEP $86.4B
FY23
KDP $14.8B
PEP $91.5B
FY24
KDP $15.4B
PEP $91.9B
FY25
KDP $16.6B
PEP $93.9B
KDP
PEP
Operating margin
FY16
KDP 22.3%
PEP 15.6%
FY17
KDP 20.8%
PEP 16.2%
FY18
KDP 16.6%
PEP 15.6%
FY19
KDP 21.4%
PEP 15.3%
FY20
KDP 21.4%
PEP 14.3%
FY21
KDP 22.8%
PEP 14.0%
FY22
KDP 18.5%
PEP 13.3%
FY23
KDP 21.6%
PEP 13.1%
FY24
KDP 16.9%
PEP 14.0%
FY25
KDP 21.5%
PEP 12.2%
KDP
PEP
Free cash flow
FY16
KDP $781M
PEP $7.6B
FY17
KDP $836M
PEP $7.1B
FY18
KDP $1.4B
PEP $6.1B
FY19
KDP $2.1B
PEP $5.4B
FY20
KDP $2.0B
PEP $6.4B
FY21
KDP $2.5B
PEP $7.0B
FY22
KDP $2.5B
PEP $5.6B
FY23
KDP $904M
PEP $7.9B
FY24
KDP $1.7B
PEP $7.2B
FY25
KDP $1.5B
PEP $7.7B
KDP
PEP
Return on capital
FY16
KDP 20.0%
PEP 22.4%
FY17
KDP 14.8%
PEP 16.7%
FY18
KDP 3.7%
PEP 29.4%
FY19
KDP 4.6%
PEP 20.5%
FY20
KDP 5.0%
PEP 17.9%
FY21
KDP 6.0%
PEP 17.7%
FY22
KDP 5.9%
PEP 19.0%
FY23
KDP 6.6%
PEP 18.5%
FY24
KDP 4.9%
PEP 19.6%
FY25
KDP 6.8%
PEP 16.4%
KDP
PEP
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.