PepsiCo vs. Coca-Cola: Which Stock Dominates Global Beverage Space?

In the global beverage arena, no rivalry is as enduring as PepsiCo Inc. PEP and The Coca-Cola Company KO. These two icons not only compete for shelf space but also for market share, mindshare and strategic dominance across vastly different business models.Coca-Cola is a pure-play beverage powerhouse, built on brand licensing and unmatched global distribution. PepsiCo, in contrast, blends drinks with a massive snacks empire, reshaping its competitive edge. This face-off explores how market position and business structure define who really leads.The Case for PEPPepsiCo’s investment case is grounded in its dominant market position and scale across the global beverage industry. The company continues to hold or gain carbonated soft drink share in roughly two-thirds of its top international markets, underscoring the durability of its brands and distribution reach.In third-quarter 2025, PepsiCo’s international beverage business delivered 6% organic revenue growth, while non-sugar Pepsi variants achieved volume share leadership in key markets such as the U.K. This performance highlights PepsiCo’s ability to defend and expand share in a mature but highly competitive beverage landscape. PepsiCo’s diversified business model strengthens its competitive moat. Unlike pure-play beverage peers, PepsiCo benefits from a complementary snacks portfolio that enhances shelf presence, pricing power and channel leverage.Within beverages, management is actively reshaping the portfolio toward faster-growing segments, such as zero sugar, functional hydration, energy and modern soda. Brands like Pepsi Zero Sugar, Mountain Dew and Propel are gaining share, while poppi has emerged as a high-growth asset, delivering more than half of the retail sales growth. This portfolio mix allows PepsiCo to target a broad demographic spectrum, from value-oriented consumers to health-conscious and functionality-seeking customers. PepsiCo continues to demonstrate resilience. Third-quarter reported net revenues rose nearly 3%, supported by accelerating momentum in North America beverages and consistent international growth. While higher supply chain and tariff-related costs pressured earnings, management is offsetting these headwinds through productivity initiatives, SKU rationalization, price-pack architecture, and increased digital and AI-driven efficiencies across the value chain.These fundamentals, market leadership, portfolio strength and disciplined cost management, position PepsiCo to sustain cash flows and long-term shareholder returns.The Case for KOCoca-Cola’s investment thesis is anchored in unmatched scale, durable market leadership and consistent execution in a structurally growing global beverage industry. Management emphasized that KO has gained overall value share for 18 consecutive quarters, holding or expanding share across every geographic segment, even amid inflationary pressures, currency volatility and uneven consumer demand.The company commands one of the deepest portfolios in the industry, with 30 billion-dollar brands, representing roughly one-quarter of all billion-dollar beverage brands globally and nearly double the count of its closest competitor, reinforcing its dominance and pricing power.Coca-Cola’s business strategy is built around portfolio breadth, system execution and disciplined innovation. Its “total beverage” approach spans sparkling drinks, hydration, sports, coffee, juices and value-added dairy, allowing the company to capture shifting consumer preferences across demographics and income levels.Growth brands such as Coca-Cola Zero Sugar, Powerade, smartwater and fairlife are complemented by affordability-focused packaging and localized brand strategies, helping KO defend share while expanding consumption occasions. Digital transformation is enhancing marketing effectiveness through personalized engagement, data-driven execution and culturally relevant campaigns, strengthening brand resonance across markets.Coca-Cola continues to convert scale into a resilient performance. In third-quarter 2025, the company delivered 6% organic revenue growth, expanded comparable operating margins and achieved EPS growth despite meaningful currency headwinds, supported by productivity gains and disciplined cost control. Strong free cash flow generation and a conservative balance sheet provide flexibility to reinvest in growth while returning capital, reinforcing KO’s long-term compounding profile.Price Performance & Valuation of PEP & KOIn the past year, shares of PepsiCo have tumbled 5.9% against Coca-Cola’s rally of 11.2%. Coca-Cola has clearly outperformed PepsiCo in the market. Investors have favored KO for its steadier execution, consistent market share gains and resilient global demand, while PEP has faced pressure from slower growth and margin challenges. The divergence underscores Coca-Cola’s stronger momentum and defensive appeal within the beverage sector. Image Source: Zacks Investment Research From a valuation standpoint, PEP currently trades at a lower forward price-to-earnings (P/E) multiple of 16.84X compared with Coca-Cola’s 21.74X, making it more attractively priced, driven by its earnings and diversified revenue stream. Image Source: Zacks Investment Research The PEP stock looks cheap from a valuation perspective. Moreover, its diversity, pricing power and innovation engine make it a compelling long-term holding, especially for those seeking both growth and downside protection.Coca-Cola does seem pricey. However, its valuations reflect its strong brand equity, disciplined capital strategy and exposure to high-growth regions, making it a resilient pick for long-term portfolios. If the company sustains its execution, the premium may be warranted.How Does Zacks Consensus Estimate Compare for PEP & KO?PepsiCo’s EPS estimate for 2025 inched up 0.2% in the last 30 days, while that for 2026 edged down 0.3% in the same period. PEP’s 2025 revenues are projected to increase 1.8% year over year to $93.5 billion, while EPS is expected to decline 0.5% year over year to $8.12. Image Source: Zacks Investment Research Coca-Cola’s EPS estimates for 2025 and 2026 have been unchanged in the past 30 days. KO’s 2025 revenues and EPS are expected to increase 2.7% and 3.5% year over year to $48.3 billion and $2.98 per share, respectively. Image Source: Zacks Investment Research PEP vs. KO: Who Has the Edge?Coca-Cola appears to hold the near-term advantage, supported by stronger recent momentum and solid growth prospects. Its pure-play beverage focus, powerful brand portfolio and consistent market share gains continue to drive investor confidence and reinforce its defensive appeal.PepsiCo, however, offers an attractive counterbalance. The stock’s relatively low valuation and favorable estimate revisions suggest growing optimism around its earnings recovery. Backed by a diversified snacks-and-beverages model and ongoing productivity efforts, PEP may appeal to investors seeking value and potential upside, while KO suits those prioritizing momentum and stability. Both PEP and KO currently carry a Zacks Rank #3 (Hold).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Zacks Naming Top 10 Stocks for 2026Want to be tipped off early to our 10 top picks for the entirety of 2026? History suggests their performance could be sensational.From 2012 (when our Director of Research Sheraz Mian assumed responsibility for the portfolio) through November, 2025, the Zacks Top 10 Stocks gained +2,530.8%, more than QUADRUPLING the S&P 500’s +570.3%.Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2026. Don’t miss your chance to get in on these stocks when they’re released on January 5. Be First to New Top 10 Stocks >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report CocaCola Company (The) (KO): Free Stock Analysis Report PepsiCo, Inc. (PEP): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks