Comprehensive Stock Comparison
Compare Keurig Dr Pepper Inc. (KDP) vs The Coca-Cola Company (KO) Stock
Analyze side-by-side fundamentals, valuation, growth, and profitability to decide which stock is the better buy.
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Quick Verdict
| Category | Winner | Why |
|---|---|---|
| Growth | KDP | 8.2% revenue growth vs KO's 1.9% |
| Value | KDP | Lower P/E (13.4x vs 25.3x), PEG 1.28 vs 2.26 |
| Quality / Margins | KO | 27.3% net margin vs KDP's 12.5% |
| Stability / Safety | KO | Beta 0.04 vs KDP's 0.21 |
| Dividends | KDP | 3.0% yield, 7-year raise streak, vs KO's 2.5% |
| Momentum (1Y) | KO | +17.4% vs KDP's -6.9% |
| Efficiency (ROA) | KO | 12.5% ROA vs KDP's 3.7%, ROIC 15.8% vs 6.7% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
Valuation efficiency (growth/$)
Defensive / Recession hedge
Business Model
What each company does and how it makes money
Keurig Dr Pepper is a beverage company that operates through coffee systems and packaged drinks. It generates revenue primarily from coffee systems—including brewers and K-Cup pods—and packaged beverages like Dr Pepper and Snapple, with additional income from beverage concentrates and Latin American operations. The company's key advantage is its dual-moat system combining Keurig's proprietary single-serve coffee ecosystem with Dr Pepper's established brand portfolio and distribution network.
Coca-Cola is a global beverage company that manufactures and sells non-alcoholic drinks worldwide. It generates revenue primarily through concentrate sales to bottling partners (~40% of revenue) and finished product sales (~60%), with sparkling soft drinks like Coca-Cola, Sprite, and Fanta representing the majority of sales. Its key competitive advantage is an unparalleled global distribution network and one of the world's most valuable brand portfolios, creating massive economies of scale and pricing power.
Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Financial Metrics Comparison
Side-by-side fundamentals across 2 stocks. BestLagging
Financial Scorecard
KO leads in 4 of 6 categories (Financial Metrics, Profitability & Efficiency). KDP leads in 1 (Valuation Metrics). 1 tied.
Financial Metrics (TTM)
KO is the larger business by revenue, generating $47.9B annually — 2.9x KDP's $16.6B. KO is the more profitable business, keeping 27.3% of every revenue dollar as net income compared to KDP's 12.5%. On growth, KDP holds the edge at +10.5% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | KDPKeurig Dr Pepper … | KOThe Coca-Cola Com… |
|---|---|---|
| RevenueTrailing 12 months | $16.6B | $47.9B |
| EBITDAEarnings before interest/tax | $4.2B | $16.1B |
| Net IncomeAfter-tax profit | $2.1B | $13.1B |
| Free Cash FlowCash after capex | $1.5B | $5.3B |
| Gross MarginGross profit ÷ Revenue | +54.2% | +61.6% |
| Operating MarginEBIT ÷ Revenue | +22.0% | +28.7% |
| Net MarginNet income ÷ Revenue | +12.5% | +27.3% |
| FCF MarginFCF ÷ Revenue | +9.1% | +11.0% |
| Rev. Growth (YoY)Latest quarter vs prior year | +10.5% | +2.4% |
| EPS Growth (YoY)Latest quarter vs prior year | +3.4% | +3.9% |
Valuation Metrics
At 19.8x trailing earnings, KDP trades at a 26% valuation discount to KO's 26.8x P/E. Adjusting for growth (PEG ratio), KDP offers better value at 1.89x vs KO's 2.40x — a lower PEG means you pay less per unit of expected earnings growth.
| Metric | KDPKeurig Dr Pepper … | KOThe Coca-Cola Com… |
|---|---|---|
| Market CapShares × price | $41.1B | $350.8B |
| Enterprise ValueMkt cap + debt − cash | $56.3B | $386.1B |
| Trailing P/EPrice ÷ TTM EPS | 19.79x | 26.83x |
| Forward P/EPrice ÷ next-FY EPS est. | 13.41x | 25.26x |
| PEG RatioP/E ÷ EPS growth rate | 1.89x | 2.40x |
| EV / EBITDAEnterprise value multiple | 12.78x | 26.06x |
| Price / SalesMarket cap ÷ Revenue | 2.48x | 7.32x |
| Price / BookPrice ÷ Book value/share | 1.62x | 10.26x |
| Price / FCFMarket cap ÷ FCF | 27.34x | 66.25x |
Profitability & Efficiency
KO delivers a 38.2% return on equity — every $100 of shareholder capital generates $38 in annual profit, vs $8 for KDP. KDP carries lower financial leverage with a 0.63x debt-to-equity ratio, signaling a more conservative balance sheet compared to KO's 1.33x.
| Metric | KDPKeurig Dr Pepper … | KOThe Coca-Cola Com… |
|---|---|---|
| ROE (TTM)Return on equity | +8.1% | +38.2% |
| ROA (TTM)Return on assets | +3.7% | +12.5% |
| ROICReturn on invested capital | +6.7% | +15.8% |
| ROCEReturn on capital employed | +7.9% | +17.3% |
| Piotroski ScoreFundamental quality 0–9 | 7 | 7 |
| Debt / EquityFinancial leverage | 0.63x | 1.33x |
| Net DebtTotal debt minus cash | $15.1B | $35.2B |
| Cash & Equiv.Liquid assets | $1.0B | $10.3B |
| Total DebtShort + long-term debt | $16.1B | $45.5B |
| Interest CoverageEBIT ÷ Interest expense | 4.73x | 10.67x |
Total Returns (with DRIP)
A $10,000 investment in KO five years ago would be worth $18,200 today (with dividends reinvested), compared to $11,139 for KDP. Over the past 12 months, KO leads with a +17.4% total return vs KDP's -6.9%. The 3-year compound annual growth rate (CAGR) favors KO at 13.7% vs KDP's -1.6% — a key indicator of consistent wealth creation.
| Metric | KDPKeurig Dr Pepper … | KOThe Coca-Cola Com… |
|---|---|---|
| YTD ReturnYear-to-date | +10.0% | +18.0% |
| 1-Year ReturnPast 12 months | -6.9% | +17.4% |
| 3-Year ReturnCumulative with dividends | -4.7% | +46.8% |
| 5-Year ReturnCumulative with dividends | +11.4% | +82.0% |
| 10-Year ReturnCumulative with dividends | +881.5% | +128.4% |
| CAGR (3Y)Annualised 3-year return | -1.6% | +13.7% |
Risk & Volatility
KO is the less volatile stock with a 0.04 beta — it tends to amplify market swings less than KDP's 0.21 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. KO currently trades 99.8% from its 52-week high vs KDP's 83.8% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | KDPKeurig Dr Pepper … | KOThe Coca-Cola Com… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.21x | 0.04x |
| 52-Week HighHighest price in past year | $36.12 | $81.69 |
| 52-Week LowLowest price in past year | $25.03 | $65.35 |
| % of 52W HighCurrent price vs 52-week peak | +83.8% | +99.8% |
| RSI (14)Momentum oscillator 0–100 | 63.1 | 71.2 |
| Avg Volume (50D)Average daily shares traded | 8.4M | 14.9M |
Analyst Outlook
Wall Street rates KDP as "Buy" and KO as "Buy". Consensus price targets imply 7.1% upside for KDP (target: $32) vs 3.9% for KO (target: $85). For income investors, KDP offers the higher dividend yield at 3.03% vs KO's 2.50%.
| Metric | KDPKeurig Dr Pepper … | KOThe Coca-Cola Com… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $32.43 | $84.75 |
| # AnalystsCovering analysts | 28 | 47 |
| Dividend YieldAnnual dividend ÷ price | +3.0% | +2.5% |
| Dividend StreakConsecutive years of raises | 7 | 35 |
| Dividend / ShareAnnual DPS | $0.92 | $2.04 |
| Buyback YieldShare repurchases ÷ mkt cap | +0.0% | +0.2% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Mar 20 | Feb 26 | Change |
|---|---|---|---|
| Keurig Dr Pepper In… (KDP) | 100 | 97.2 | -2.8% |
| The Coca-Cola Compa… (KO) | 100 | 134.71 | +34.7% |
The Coca-Cola Compa… (KO) returned +82% over 5 years vs Keurig Dr Pepper In… (KDP)'s +11%. A $10,000 investment in KO 5 years ago would be worth $18,200 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Keurig Dr Pepper In… (KDP) | $6.4B | $16.6B | +157.8% |
| The Coca-Cola Compa… (KO) | $41.9B | $47.9B | +14.5% |
Keurig Dr Pepper Inc.'s revenue grew from $6.4B (2016) to $16.6B (2025) — a 11.1% CAGR. The Coca-Cola Company's revenue grew from $41.9B (2016) to $47.9B (2025) — a 1.5% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Keurig Dr Pepper In… (KDP) | 13.2% | 12.5% | -4.8% |
| The Coca-Cola Compa… (KO) | 15.6% | 27.3% | +75.4% |
Keurig Dr Pepper Inc.'s net margin went from 13% (2016) to 13% (2025). The Coca-Cola Company's net margin went from 16% (2016) to 27% (2025).
Chart 4P/E Ratio History — 9 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| Keurig Dr Pepper In… (KDP) | 2.7 | 18.3 | +577.8% |
| The Coca-Cola Compa… (KO) | 158.2 | 23 | -85.5% |
Keurig Dr Pepper Inc. has traded in a 3x–48x P/E range over 9 years; current trailing P/E is ~20x. The Coca-Cola Company has traded in a 23x–158x P/E range over 9 years; current trailing P/E is ~27x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Keurig Dr Pepper In… (KDP) | 4.54 | 1.53 | -66.3% |
| The Coca-Cola Compa… (KO) | 1.49 | 3.04 | +104.0% |
Keurig Dr Pepper Inc.'s EPS grew from $4.54 (2016) to $1.53 (2025) — a -11% CAGR. The Coca-Cola Company's EPS grew from $1.49 (2016) to $3.04 (2025) — a 8% CAGR.
Chart 6Free Cash Flow — 5 Years
Keurig Dr Pepper Inc. generated $2B FCF in 2025 (-38% vs 2021). The Coca-Cola Company generated $5B FCF in 2025 (-53% vs 2021).
KDP vs KO: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is KDP or KO a better buy right now?
Keurig Dr Pepper Inc. (KDP) offers the better valuation at 19.8x trailing P/E (13.4x forward), making it the more compelling value choice. Analysts rate Keurig Dr Pepper Inc. (KDP) a "Buy" — based on 28 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — KDP or KO?
On trailing P/E, Keurig Dr Pepper Inc. (KDP) is the cheapest at 19.8x versus The Coca-Cola Company at 26.8x. On forward P/E, Keurig Dr Pepper Inc. is actually cheaper at 13.4x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Keurig Dr Pepper Inc. wins at 1.28x versus The Coca-Cola Company's 2.26x — a reasonable growth-adjusted valuation.
03Which is the better long-term investment — KDP or KO?
Over the past 5 years, The Coca-Cola Company (KO) delivered a total return of +82.0%, compared to +11.4% for Keurig Dr Pepper Inc. (KDP). A $10,000 investment in KO five years ago would be worth approximately $18K today (assuming dividends reinvested). Over 10 years, the gap is even starker: KDP returned +881.5% versus KO's +128.4%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — KDP or KO?
By beta (market sensitivity over 5 years), The Coca-Cola Company (KO) is the lower-risk stock at 0.04β versus Keurig Dr Pepper Inc.'s 0.21β — meaning KDP is approximately 371% more volatile than KO relative to the S&P 500. On balance sheet safety, Keurig Dr Pepper Inc. (KDP) carries a lower debt/equity ratio of 63% versus 133% for The Coca-Cola Company — giving it more financial flexibility in a downturn.
05Which has better profit margins — KDP or KO?
The Coca-Cola Company (KO) is the more profitable company, earning 27.3% net margin versus 12.5% for Keurig Dr Pepper Inc. — meaning it keeps 27.3% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: KO leads at 28.7% versus 22.0% for KDP. At the gross margin level — before operating expenses — KO leads at 61.6%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
06Is KDP or KO more undervalued right now?
The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential. By this metric, Keurig Dr Pepper Inc. (KDP) is the more undervalued stock at a PEG of 1.28x versus The Coca-Cola Company's 2.26x. A PEG below 1.5 suggests fair-to-attractive pricing relative to expected growth. On forward earnings alone, Keurig Dr Pepper Inc. (KDP) trades at 13.4x forward P/E versus 25.3x for The Coca-Cola Company — 11.9x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for KDP: 7.1% to $32.43.
07Which pays a better dividend — KDP or KO?
All stocks in this comparison pay dividends. Keurig Dr Pepper Inc. (KDP) offers the highest yield at 3.0%, versus 2.5% for The Coca-Cola Company (KO).
08Is KDP or KO better for a retirement portfolio?
For long-horizon retirement investors, Keurig Dr Pepper Inc. (KDP) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.21), 3.0% yield, +881.5% 10Y return). Both have compounded well over 10 years (KDP: +881.5%, KO: +128.4%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
09What are the main differences between KDP and KO?
Both stocks operate in the Consumer Defensive sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both. In terms of investment character: KDP is a mid-cap income-oriented stock; KO is a large-cap quality compounder stock. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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