Coca-Cola vs. PepsiCo Revenue Comparison
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 19 2026
0mins
Source: Fool
- Revenue Stability: Coca-Cola generated $49 billion in revenue over the past 12 months with a net income margin of approximately 32%, showcasing its strong competitive position and stable profitability in the beverage market, reflecting its high-margin business model.
- PepsiCo's Volatility: PepsiCo's revenue reached $95 billion during the same period, but with a net income margin of only 12%, its diversified business leads to greater revenue fluctuations, indicating uncertainty in its market performance.
- Investment Return Performance: Over the past two years, Coca-Cola's stock has risen by 36%, while PepsiCo's has declined by 12%, demonstrating Coca-Cola's superior performance in terms of investor returns, thereby attracting more investor interest.
- Future Growth Potential: Although PepsiCo generates nearly double the annual revenue of Coca-Cola, its investments in product development and cost efficiency will be crucial in determining whether it can enhance earnings growth and drive stock price increases in the future.
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Analyst Views on KO
Wall Street analysts forecast KO stock price to fall
14 Analyst Rating
13 Buy
1 Hold
0 Sell
Strong Buy
Current: 80.410
Low
71.00
Averages
79.33
High
85.00
Current: 80.410
Low
71.00
Averages
79.33
High
85.00
About KO
The Coca-Cola Company is a beverage company. The Company's segments include Europe, Middle East and Africa (EMEA); Latin America; North America; Asia Pacific, and Bottling Investments. It sells multiple brands across several beverage categories worldwide. Its portfolio of sparkling soft drink brands includes Coca-Cola, Sprite and Fanta. Its water, sports, coffee and tea brands include Dasani, smartwater, vitaminwater, Topo Chico, BODYARMOR, Powerade, Costa, Georgia, Fuze Tea, Gold Peak and Ayataka. Its juice, value-added dairy and plant-based beverage brands include Minute Maid, Simply, innocent, Del Valle, fairlife and Santa Clara. It operates in two lines of business: concentrate operations and finished product operations. Its concentrate operations sell beverage concentrates, syrups, including fountain syrups, and certain finished beverages to authorized bottling operations. Its finished product operations sell sparkling soft drinks and a variety of other finished beverages.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Technology-Driven Growth: The introduction of the Walmart+ subscription plan has proven successful, with members spending four times more than non-members, and the quarterly revenue from membership fees increased by double digits, showcasing effective service transformation.
- Advertising Revenue Surge: Advertising revenue grew by 36% this quarter, becoming a significant part of Walmart's income, and combined with online sales and subscription services, it creates a sustainable revenue growth model that enhances the company's future profitability.
See More
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- Reliability of Dividend Kings: Walmart, recognized as a Dividend King, has increased its dividend for 53 consecutive years, providing a 150% return to shareholders over the past five years, showcasing its potential for stable dividends and stock price appreciation, despite a recent stock price drop of over 9% due to cautious outlook.
- Earnings Performance and Market Reaction: Walmart's fiscal 2027 Q1 results largely met expectations, but the stock price fell due to below-expectation guidance for the upcoming quarter, with investors concerned about rising fuel costs impacting distribution and consumer spending.
- Technology-Driven Growth: Walmart enhances its competitiveness through technological innovations, with the Walmart+ membership program leading to members spending four times more than non-members, and a double-digit increase in membership fee revenue this quarter, indicating strong growth potential in subscription and advertising revenue.
- Optimistic Management Outlook: Despite challenges from rising fuel costs, Walmart's management expresses optimism about future business potential, with CFO John Rainey stating that the excitement about the business is at its highest in years, reflecting confidence in sustained growth and dividend payouts.
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- High Market Valuation: The S&P 500 index's current P/E ratio stands at 27.5, significantly above the historical average of 19, indicating that the market may not be fully accounting for potential summer economic pressures, prompting investors to approach with caution regarding possible corrections.
- Rising Energy Prices: Geopolitical conflicts in the Middle East have sharply increased energy prices, with oil executives warning that the market is neglecting energy fundamentals, suggesting it may take months for markets to normalize, which could further elevate global inflation and recession fears.
- Berkshire's Cash Reserves: Berkshire Hathaway reported nearly $400 billion in cash at the end of Q1 2026, reflecting a cautious stance amid high market valuations, potentially providing a safety margin for conservative investors.
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See More
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- Valuation Warning: The S&P 500's current P/E ratio of 27.5x significantly exceeds the historical average of 19x, indicating that the market may not be fully accounting for potential summer economic headwinds, suggesting cautious investors should remain vigilant against possible corrections.
- Rising Energy Prices: Geopolitical conflicts in the Middle East have sharply increased energy prices, with oil executives warning that Wall Street is overlooking the fundamentals of the energy sector, which may take months to normalize, exacerbating global inflation and recession concerns.
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See More
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- Dividend Yield Comparison: The Vanguard ETF offers a dividend yield of 2.24%, while the Schwab ETF provides a higher yield of 3.29%; despite the Schwab ETF's attractiveness in yield, the Vanguard's diversified portfolio may better withstand market fluctuations.
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