Keurig Dr Pepper vs PepsiCo
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KIRA’s take AI analyst
I put Keurig Dr Pepper and PepsiCo side by side, using each one’s latest annual report. Here is what stands out:
- 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 35.3x against 17.0x for PepsiCo.
Who comes out ahead
Of the 11 measures where higher (or lower) is clearly better, how many each company leads.
Keurig Dr Pepper
KDP
7/11
Revenue growth5-year growthGross marginOperating marginNet marginFCF marginShare count change
PepsiCo
PEP
3/11
Return on capitalReturn on equityNet debt / EBITDA
Side by side
Best in the row
| Latest fiscal year | KDP FY25 | PEP FY25 |
|---|---|---|
| Size | ||
| Market cap | $47.7B | $185.2B |
| 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 | 35.3x | 17.0x |
| Piotroski F-score | 6 | 6 |
Ten years
Revenue
Operating margin
Free cash flow
Return on capital
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.