Comprehensive Stock Comparison
Compare Oatly Group AB (OTLY) vs PepsiCo, Inc. (PEP) 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 | OTLY | 4.7% revenue growth vs PEP's 2.3% |
| Quality / Margins | PEP | 8.8% net margin vs OTLY's -17.7% |
| Stability / Safety | PEP | Beta 0.14 vs OTLY's 0.95, lower leverage |
| Dividends | PEP | 3.3% yield; 25-year raise streak; OTLY pays no meaningful dividend |
| Momentum (1Y) | PEP | +14.3% vs OTLY's +11.9% |
| Efficiency (ROA) | PEP | 7.7% ROA vs OTLY's -19.4%, ROIC 14.9% vs -10.5% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
Defensive / Recession hedge
Business Model
What each company does and how it makes money
Oatly is a plant-based food company that produces oat milk and other dairy alternatives made from oats. It generates revenue primarily from retail sales of its oat milk products—including Barista editions and ready-to-drink beverages—and foodservice partnerships with coffee shops and restaurants. The company's key advantage is its strong brand recognition in the oat milk category and proprietary enzyme technology that creates a distinctive creamy texture.
PepsiCo is a global food and beverage giant that sells iconic snack brands like Lay's and Doritos alongside its namesake soft drinks. It generates revenue primarily through its Frito-Lay North America snacks division (~50% of operating profit) and its beverage business, with the rest coming from international markets and Quaker Foods. The company's competitive moat lies in its massive scale, powerful distribution network, and portfolio of deeply entrenched household brands that command strong consumer loyalty.
Financial Metrics Comparison
Side-by-side fundamentals across 2 stocks. BestLagging
Financial Scorecard
PEP leads in 4 of 6 categories (Financial Metrics, Profitability & Efficiency). OTLY leads in 1 (Valuation Metrics).
Financial Metrics (TTM)
PEP is the larger business by revenue, generating $93.9B annually — 108.9x OTLY's $862M. PEP is the more profitable business, keeping 8.8% of every revenue dollar as net income compared to OTLY's -17.7%. On growth, OTLY holds the edge at +9.1% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | OTLYOatly Group AB | PEPPepsiCo, Inc. |
|---|---|---|
| RevenueTrailing 12 months | $862M | $93.9B |
| EBITDAEarnings before interest/tax | -$30M | $14.3B |
| Net IncomeAfter-tax profit | -$153M | $8.2B |
| Free Cash FlowCash after capex | -$37M | $7.7B |
| Gross MarginGross profit ÷ Revenue | +32.1% | +54.1% |
| Operating MarginEBIT ÷ Revenue | -7.9% | +12.2% |
| Net MarginNet income ÷ Revenue | -17.7% | +8.8% |
| FCF MarginFCF ÷ Revenue | -4.3% | +8.2% |
| Rev. Growth (YoY)Latest quarter vs prior year | +9.1% | +5.6% |
| EPS Growth (YoY)Latest quarter vs prior year | +80.0% | +66.7% |
Valuation Metrics
| Metric | OTLYOatly Group AB | PEPPepsiCo, Inc. |
|---|---|---|
| Market CapShares × price | $372M | $232.0B |
| Enterprise ValueMkt cap + debt − cash | $821M | $272.7B |
| Trailing P/EPrice ÷ TTM EPS | -2.37x | 28.29x |
| Forward P/EPrice ÷ next-FY EPS est. | — | 19.68x |
| PEG RatioP/E ÷ EPS growth rate | — | 8.67x |
| EV / EBITDAEnterprise value multiple | — | 19.07x |
| Price / SalesMarket cap ÷ Revenue | 0.43x | 2.47x |
| Price / BookPrice ÷ Book value/share | 18.39x | 11.33x |
| Price / FCFMarket cap ÷ FCF | — | 30.24x |
Profitability & Efficiency
PEP delivers a 40.1% return on equity — every $100 of shareholder capital generates $40 in annual profit, vs $-8 for OTLY. PEP carries lower financial leverage with a 2.43x debt-to-equity ratio, signaling a more conservative balance sheet compared to OTLY's 26.12x. On the Piotroski fundamental quality scale (0–9), PEP scores 5/9 vs OTLY's 4/9, reflecting solid financial health.
| Metric | OTLYOatly Group AB | PEPPepsiCo, Inc. |
|---|---|---|
| ROE (TTM)Return on equity | -7.8% | +40.1% |
| ROA (TTM)Return on assets | -19.4% | +7.7% |
| ROICReturn on invested capital | -10.5% | +14.9% |
| ROCEReturn on capital employed | -27.2% | +16.1% |
| Piotroski ScoreFundamental quality 0–9 | 4 | 5 |
| Debt / EquityFinancial leverage | 26.12x | 2.43x |
| Net DebtTotal debt minus cash | $449M | $40.7B |
| Cash & Equiv.Liquid assets | $64M | $9.2B |
| Total DebtShort + long-term debt | $514M | $49.9B |
| Interest CoverageEBIT ÷ Interest expense | -1.39x | 10.34x |
Total Returns (with DRIP)
A $10,000 investment in PEP five years ago would be worth $14,884 today (with dividends reinvested), compared to $295 for OTLY. Over the past 12 months, PEP leads with a +14.3% total return vs OTLY's +11.9%. The 3-year compound annual growth rate (CAGR) favors PEP at 2.3% vs OTLY's -35.3% — a key indicator of consistent wealth creation.
| Metric | OTLYOatly Group AB | PEPPepsiCo, Inc. |
|---|---|---|
| YTD ReturnYear-to-date | +6.3% | +19.3% |
| 1-Year ReturnPast 12 months | +11.9% | +14.3% |
| 3-Year ReturnCumulative with dividends | -72.9% | +7.0% |
| 5-Year ReturnCumulative with dividends | -97.1% | +48.8% |
| 10-Year ReturnCumulative with dividends | -97.1% | +116.7% |
| CAGR (3Y)Annualised 3-year return | -35.3% | +2.3% |
Risk & Volatility
PEP is the less volatile stock with a 0.14 beta — it tends to amplify market swings less than OTLY's 0.95 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. PEP currently trades 99.0% from its 52-week high vs OTLY's 63.2% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | OTLYOatly Group AB | PEPPepsiCo, Inc. |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.95x | 0.14x |
| 52-Week HighHighest price in past year | $18.84 | $171.48 |
| 52-Week LowLowest price in past year | $8.25 | $127.60 |
| % of 52W HighCurrent price vs 52-week peak | +63.2% | +99.0% |
| RSI (14)Momentum oscillator 0–100 | 53.9 | 65.3 |
| Avg Volume (50D)Average daily shares traded | 65K | 7.3M |
Analyst Outlook
Wall Street rates OTLY as "Hold" and PEP as "Hold". Consensus price targets imply 29.1% upside for OTLY (target: $15) vs -1.2% for PEP (target: $168). PEP is the only dividend payer here at 3.28% yield — a key consideration for income-focused portfolios.
| Metric | OTLYOatly Group AB | PEPPepsiCo, Inc. |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Hold |
| Price TargetConsensus 12-month target | $15.38 | $167.75 |
| # AnalystsCovering analysts | 18 | 44 |
| Dividend YieldAnnual dividend ÷ price | — | +3.3% |
| Dividend StreakConsecutive years of raises | — | 25 |
| Dividend / ShareAnnual DPS | — | $5.57 |
| Buyback YieldShare repurchases ÷ mkt cap | 0.0% | +0.4% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | May 21 | Feb 26 | Change |
|---|---|---|---|
| Oatly Group AB (OTLY) | 100 | 3.02 | -97.0% |
| PepsiCo, Inc. (PEP) | 100 | 105.13 | +5.1% |
PepsiCo, Inc. (PEP) returned +49% over 5 years vs Oatly Group AB (OTLY)'s -97%. A $10,000 investment in PEP 5 years ago would be worth $14,884 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Oatly Group AB (OTLY) | $204M | $862M | +322.7% |
| PepsiCo, Inc. (PEP) | $62.8B | $93.9B | +49.6% |
PepsiCo, Inc.'s revenue grew from $62.8B (2016) to $93.9B (2025) — a 4.6% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Oatly Group AB (OTLY) | -17.5% | -17.7% | -1.5% |
| PepsiCo, Inc. (PEP) | 10.1% | 8.8% | -13.0% |
PepsiCo, Inc.'s net margin went from 10% (2016) to 9% (2025).
Chart 4P/E Ratio History — 9 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| PepsiCo, Inc. (PEP) | 35.5 | 23.9 | -32.7% |
PepsiCo, Inc. has traded in a 13x–36x P/E range over 9 years; current trailing P/E is ~28x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Oatly Group AB (OTLY) | -1.2 | -5.03 | -319.2% |
| PepsiCo, Inc. (PEP) | 4.36 | 6 | +37.6% |
PepsiCo, Inc.'s EPS grew from $4.36 (2016) to $6.00 (2025) — a 4% CAGR.
Chart 6Free Cash Flow — 5 Years
Oatly Group AB generated $-36M FCF in 2025 (+93% vs 2021). PepsiCo, Inc. generated $8B FCF in 2025 (+10% vs 2021).
OTLY vs PEP: Frequently Asked Questions
8 questions · data-driven answers · updated daily
01Is OTLY or PEP a better buy right now?
PepsiCo, Inc. (PEP) offers the better valuation at 28.3x trailing P/E (19.7x forward), making it the more compelling value choice. Analysts rate Oatly Group AB (OTLY) a "Hold" — based on 18 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 is the better long-term investment — OTLY or PEP?
Over the past 5 years, PepsiCo, Inc. (PEP) delivered a total return of +48.8%, compared to -97.1% for Oatly Group AB (OTLY). A $10,000 investment in PEP five years ago would be worth approximately $15K today (assuming dividends reinvested). Over 10 years, the gap is even starker: PEP returned +116.7% versus OTLY's -97.1%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
03Which is safer — OTLY or PEP?
By beta (market sensitivity over 5 years), PepsiCo, Inc. (PEP) is the lower-risk stock at 0.14β versus Oatly Group AB's 0.95β — meaning OTLY is approximately 565% more volatile than PEP relative to the S&P 500. On balance sheet safety, PepsiCo, Inc. (PEP) carries a lower debt/equity ratio of 2% versus 26% for Oatly Group AB — giving it more financial flexibility in a downturn.
04Which has better profit margins — OTLY or PEP?
PepsiCo, Inc. (PEP) is the more profitable company, earning 8.8% net margin versus -17.7% for Oatly Group AB — meaning it keeps 8.8% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: PEP leads at 12.2% versus -7.9% for OTLY. At the gross margin level — before operating expenses — PEP leads at 54.1%, 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.
05Is OTLY or PEP more undervalued right now?
Analyst consensus price targets imply the most upside for OTLY: 29.1% to $15.38.
06Which pays a better dividend — OTLY or PEP?
In this comparison, PEP (3.3% yield) pays a dividend. OTLY does not pay a meaningful dividend and should not be held primarily for income.
07Is OTLY or PEP better for a retirement portfolio?
For long-horizon retirement investors, PepsiCo, Inc. (PEP) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.14), 3.3% yield, +116.7% 10Y return). Both have compounded well over 10 years (PEP: +116.7%, OTLY: -97.1%), 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.
08What are the main differences between OTLY and PEP?
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: OTLY is a small-cap quality compounder stock; PEP is a large-cap income-oriented stock. PEP pays a dividend while OTLY does not, making them suitable for different income and tax situations. 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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