KDP vs PEP vs KO vs MDLZ

For growth investors, Keurig Dr Pepper Inc.

(KDP) is the stronger pick with 8. 2% revenue growth year-over-year, versus 1. 9% for The Coca-Cola Company (KO). Keurig Dr Pepper Inc. (KDP) offers the better valuation at 18. 7x trailing P/E (12. 5x 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.

On trailing P/E, Keurig Dr Pepper Inc.

(KDP) is the cheapest at 18. 7x versus Mondelez International, Inc. at 32. 7x. On forward P/E, Keurig Dr Pepper Inc. is actually cheaper at 12. 5x. 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. 20x versus PepsiCo, Inc. 's 5. 52x — a reasonable growth-adjusted valuation.

Over the past 5 years, The Coca-Cola Company (KO) delivered a total return of +62.

3%, compared to -9. 8% for Keurig Dr Pepper Inc. (KDP). Over 10 years, the gap is even starker: KDP returned +842. 9% versus MDLZ's +71. 0%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), The Coca-Cola Company (KO) is the lower-risk stock at -0.

09β versus Keurig Dr Pepper Inc. 's 0. 15β — meaning KDP is approximately -275% 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 2% for PepsiCo, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Keurig Dr Pepper Inc.

(KDP) is pulling ahead at 8. 2% versus 1. 9% for The Coca-Cola Company (KO). On earnings-per-share growth, the picture is similar: Keurig Dr Pepper Inc. grew EPS 45. 7% year-over-year, compared to -44. 7% for Mondelez International, Inc.. Over a 3-year CAGR, MDLZ leads at 7. 0% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

The Coca-Cola Company (KO) is the more profitable company, earning 27.

3% net margin versus 6. 4% for Mondelez International, 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 9. 4% for MDLZ. 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.

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. 20x versus PepsiCo, Inc. 's 5. 52x. 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 12. 5x forward P/E versus 24. 3x for The Coca-Cola Company — 11. 8x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for KDP: 13. 2% to $32. 33.

All stocks in this comparison pay dividends.

PepsiCo, Inc. (PEP) offers the highest yield at 3. 6%, versus 2. 6% for The Coca-Cola Company (KO).

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. 15), 3. 2% yield, +842. 9% 10Y return). Both have compounded well over 10 years (KDP: +842. 9%, MDLZ: +71. 0%), 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.

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; PEP is a large-cap income-oriented stock; KO is a large-cap quality compounder stock; MDLZ is a mid-cap income-oriented 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.