Comprehensive Stock Comparison
Compare Keurig Dr Pepper Inc. (KDP) vs Walmart Inc. (WMT) vs Costco Wholesale Corporation (COST) 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 | COST | 8.2% revenue growth vs WMT's 4.7% |
| Value | KDP | Lower P/E (13.4x vs 49.8x), PEG 1.28 vs 3.30 |
| Quality / Margins | KDP | 12.5% net margin vs COST's 3.0% |
| Stability / Safety | KDP | Beta 0.21 vs WMT's 0.53, lower leverage |
| Dividends | KDP | 3.0% yield, 7-year raise streak, vs COST's 0.5% |
| Momentum (1Y) | WMT | +30.7% vs KDP's -6.9% |
| Efficiency (ROA) | COST | 10.0% ROA vs KDP's 3.7%, ROIC 34.5% 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.
Walmart is the world's largest retailer operating a vast network of physical stores and e-commerce platforms. It generates revenue primarily through retail sales — with Walmart U.S. contributing about 65% of total revenue, Walmart International around 20%, and Sam's Club membership warehouse clubs roughly 15%. Its key competitive advantage is massive scale and supply chain efficiency, enabling everyday low prices that competitors struggle to match.
Costco operates a global chain of membership warehouse clubs that sell a wide range of merchandise at low prices to members. It generates revenue primarily from membership fees — which account for roughly 70% of operating income — and merchandise sales, with a razor-thin markup on goods. The company's moat lies in its extreme operational efficiency, massive buying power, and fiercely loyal membership base that renews at over 90% rates.
Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Financial Metrics Comparison
Side-by-side fundamentals across 3 stocks. BestLagging
Financial Scorecard
KDP leads in 2 of 6 categories (Financial Metrics, Valuation Metrics). COST leads in 1 (Profitability & Efficiency). 2 tied.
Financial Metrics (TTM)
WMT is the larger business by revenue, generating $703.1B annually — 42.3x KDP's $16.6B. KDP is the more profitable business, keeping 12.5% of every revenue dollar as net income compared to COST's 3.0%. On growth, KDP holds the edge at +10.5% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | KDPKeurig Dr Pepper … | WMTWalmart Inc. | COSTCostco Wholesale … |
|---|---|---|---|
| RevenueTrailing 12 months | $16.6B | $703.1B | $280.4B |
| EBITDAEarnings before interest/tax | $4.2B | $42.8B | $13.4B |
| Net IncomeAfter-tax profit | $2.1B | $22.9B | $8.3B |
| Free Cash FlowCash after capex | $1.5B | $15.3B | $9.0B |
| Gross MarginGross profit ÷ Revenue | +54.2% | +24.9% | +12.9% |
| Operating MarginEBIT ÷ Revenue | +22.0% | +4.1% | +3.8% |
| Net MarginNet income ÷ Revenue | +12.5% | +3.3% | +3.0% |
| FCF MarginFCF ÷ Revenue | +9.1% | +2.2% | +3.2% |
| Rev. Growth (YoY)Latest quarter vs prior year | +10.5% | +5.8% | +8.3% |
| EPS Growth (YoY)Latest quarter vs prior year | +3.4% | +35.1% | +11.4% |
Valuation Metrics
At 19.8x trailing earnings, KDP trades at a 64% valuation discount to COST's 55.5x P/E. Adjusting for growth (PEG ratio), KDP offers better value at 1.89x vs WMT's 4.26x — a lower PEG means you pay less per unit of expected earnings growth.
| Metric | KDPKeurig Dr Pepper … | WMTWalmart Inc. | COSTCostco Wholesale … |
|---|---|---|---|
| Market CapShares × price | $41.1B | $1.02T | $448.0B |
| Enterprise ValueMkt cap + debt − cash | $56.3B | $1.08T | $442.0B |
| Trailing P/EPrice ÷ TTM EPS | 19.79x | 46.87x | 55.51x |
| Forward P/EPrice ÷ next-FY EPS est. | 13.41x | 43.76x | 49.80x |
| PEG RatioP/E ÷ EPS growth rate | 1.89x | 4.26x | 3.68x |
| EV / EBITDAEnterprise value multiple | 12.78x | 24.44x | 34.51x |
| Price / SalesMarket cap ÷ Revenue | 2.48x | 1.43x | 1.63x |
| Price / BookPrice ÷ Book value/share | 1.62x | 10.27x | 15.42x |
| Price / FCFMarket cap ÷ FCF | 27.34x | 24.53x | 57.17x |
Profitability & Efficiency
COST delivers a 27.4% return on equity — every $100 of shareholder capital generates $27 in annual profit, vs $8 for KDP. COST carries lower financial leverage with a 0.28x debt-to-equity ratio, signaling a more conservative balance sheet compared to WMT's 0.67x. On the Piotroski fundamental quality scale (0–9), KDP scores 7/9 vs WMT's 6/9, reflecting strong financial health.
| Metric | KDPKeurig Dr Pepper … | WMTWalmart Inc. | COSTCostco Wholesale … |
|---|---|---|---|
| ROE (TTM)Return on equity | +8.1% | +22.3% | +27.4% |
| ROA (TTM)Return on assets | +3.7% | +7.9% | +10.0% |
| ROICReturn on invested capital | +6.7% | +14.7% | +34.5% |
| ROCEReturn on capital employed | +7.9% | +17.5% | +27.9% |
| Piotroski ScoreFundamental quality 0–9 | 7 | 6 | 7 |
| Debt / EquityFinancial leverage | 0.63x | 0.67x | 0.28x |
| Net DebtTotal debt minus cash | $15.1B | $56.4B | -$6.0B |
| Cash & Equiv.Liquid assets | $1.0B | $10.7B | $14.2B |
| Total DebtShort + long-term debt | $16.1B | $67.1B | $8.2B |
| Interest CoverageEBIT ÷ Interest expense | 4.73x | 11.85x | 72.26x |
Total Returns (with DRIP)
A $10,000 investment in COST five years ago would be worth $31,542 today (with dividends reinvested), compared to $11,139 for KDP. Over the past 12 months, WMT leads with a +30.7% total return vs KDP's -6.9%. The 3-year compound annual growth rate (CAGR) favors WMT at 40.2% vs KDP's -1.6% — a key indicator of consistent wealth creation.
| Metric | KDPKeurig Dr Pepper … | WMTWalmart Inc. | COSTCostco Wholesale … |
|---|---|---|---|
| YTD ReturnYear-to-date | +10.0% | +13.5% | +18.4% |
| 1-Year ReturnPast 12 months | -6.9% | +30.7% | -3.1% |
| 3-Year ReturnCumulative with dividends | -4.7% | +175.4% | +114.7% |
| 5-Year ReturnCumulative with dividends | +11.4% | +201.3% | +215.4% |
| 10-Year ReturnCumulative with dividends | +881.5% | +512.5% | +616.5% |
| CAGR (3Y)Annualised 3-year return | -1.6% | +40.2% | +29.0% |
Risk & Volatility
KDP is the less volatile stock with a 0.21 beta — it tends to amplify market swings less than WMT's 0.53 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. WMT currently trades 95.0% 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 … | WMTWalmart Inc. | COSTCostco Wholesale … |
|---|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.21x | 0.53x | 0.44x |
| 52-Week HighHighest price in past year | $36.12 | $134.69 | $1067.08 |
| 52-Week LowLowest price in past year | $25.03 | $79.81 | $846.80 |
| % of 52W HighCurrent price vs 52-week peak | +83.8% | +95.0% | +94.7% |
| RSI (14)Momentum oscillator 0–100 | 63.1 | 49.9 | 53.4 |
| Avg Volume (50D)Average daily shares traded | 8.4M | 29.5M | 2.1M |
Analyst Outlook
Analyst consensus: KDP as "Buy", WMT as "Buy", COST as "Buy". Consensus price targets imply 7.1% upside for KDP (target: $32) vs 3.7% for COST (target: $1048). For income investors, KDP offers the higher dividend yield at 3.03% vs COST's 0.49%.
| Metric | KDPKeurig Dr Pepper … | WMTWalmart Inc. | COSTCostco Wholesale … |
|---|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy | Buy |
| Price TargetConsensus 12-month target | $32.43 | $136.31 | $1048.21 |
| # AnalystsCovering analysts | 28 | 64 | 57 |
| Dividend YieldAnnual dividend ÷ price | +3.0% | +0.7% | +0.5% |
| Dividend StreakConsecutive years of raises | 7 | 37 | 0 |
| Dividend / ShareAnnual DPS | $0.92 | $0.94 | $4.91 |
| Buyback YieldShare repurchases ÷ mkt cap | +0.0% | +0.8% | +0.2% |
Historical Charts
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Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Mar 20 | Feb 26 | Change |
|---|---|---|---|
| Keurig Dr Pepper In… (KDP) | 100 | 97.2 | -2.8% |
| Walmart Inc. (WMT) | 100 | 321.15 | +221.1% |
| Costco Wholesale Co… (COST) | 100 | 313.24 | +213.2% |
Costco Wholesale Co… (COST) returned +215% over 5 years vs Keurig Dr Pepper In… (KDP)'s +11%. A $10,000 investment in COST 5 years ago would be worth $31,542 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2017 | 2026 | Change |
|---|---|---|---|
| Keurig Dr Pepper In… (KDP) | $6.7B | $16.6B | +148.2% |
| Walmart Inc. (WMT) | $485.9B | $713.2B | +46.8% |
| Costco Wholesale Co… (COST) | $129.0B | $275.2B | +113.3% |
Walmart Inc.'s revenue grew from $485.9B (2017) to $713.2B (2026) — a 4.4% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2017 | 2026 | Change |
|---|---|---|---|
| Keurig Dr Pepper In… (KDP) | 16.1% | 12.5% | -22.1% |
| Walmart Inc. (WMT) | 2.8% | 3.1% | +9.3% |
| Costco Wholesale Co… (COST) | 2.1% | 2.9% | +41.7% |
Walmart Inc.'s net margin went from 3% (2017) to 3% (2026).
Chart 4P/E Ratio History — 10 Years
| Stock | 2017 | 2026 | Change |
|---|---|---|---|
| Keurig Dr Pepper In… (KDP) | 2.7 | 18.3 | +577.8% |
| Walmart Inc. (WMT) | 22.5 | 46.9 | +108.4% |
| Costco Wholesale Co… (COST) | 30.6 | 47.4 | +54.9% |
Keurig Dr Pepper Inc. has traded in a 3x–48x P/E range over 9 years; current trailing P/E is ~20x. Walmart Inc. has traded in a 23x–53x P/E range over 10 years; current trailing P/E is ~47x.
Chart 5EPS Growth — 10 Years
| Stock | 2017 | 2026 | Change |
|---|---|---|---|
| Keurig Dr Pepper In… (KDP) | 5.89 | 1.53 | -74.0% |
| Walmart Inc. (WMT) | 1.46 | 2.73 | +87.0% |
| Costco Wholesale Co… (COST) | 6.08 | 18.21 | +199.5% |
Walmart Inc.'s EPS grew from $1.46 (2017) to $2.73 (2026) — a 7% CAGR.
Chart 6Free Cash Flow — 5 Years
Keurig Dr Pepper Inc. generated $2B FCF in 2025 (-38% vs 2021). Walmart Inc. generated $42B FCF in 2026 (+61% vs 2021).
KDP vs WMT vs COST: Key Questions Answered
9 questions · data-driven answers · updated daily
01Is KDP or WMT or COST 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 WMT or COST?
On trailing P/E, Keurig Dr Pepper Inc. (KDP) is the cheapest at 19.8x versus Costco Wholesale Corporation at 55.5x. 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 Walmart Inc.'s 3.98x — a reasonable growth-adjusted valuation.
03Which is the better long-term investment — KDP or WMT or COST?
Over the past 5 years, Costco Wholesale Corporation (COST) delivered a total return of +215.4%, compared to +11.4% for Keurig Dr Pepper Inc. (KDP). A $10,000 investment in COST five years ago would be worth approximately $32K today (assuming dividends reinvested). Over 10 years, the gap is even starker: KDP returned +881.5% versus WMT's +512.5%. 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 WMT or COST?
By beta (market sensitivity over 5 years), Keurig Dr Pepper Inc. (KDP) is the lower-risk stock at 0.21β versus Walmart Inc.'s 0.53β — meaning WMT is approximately 151% more volatile than KDP relative to the S&P 500. On balance sheet safety, Costco Wholesale Corporation (COST) carries a lower debt/equity ratio of 28% versus 67% for Walmart Inc. — giving it more financial flexibility in a downturn.
05Which has better profit margins — KDP or WMT or COST?
Keurig Dr Pepper Inc. (KDP) is the more profitable company, earning 12.5% net margin versus 2.9% for Costco Wholesale Corporation — meaning it keeps 12.5% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: KDP leads at 22.0% versus 3.8% for COST. At the gross margin level — before operating expenses — KDP leads at 52.4%, 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 WMT or COST 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 Walmart Inc.'s 3.98x. 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 49.8x for Costco Wholesale Corporation — 36.4x 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 WMT or COST?
All stocks in this comparison pay dividends. Keurig Dr Pepper Inc. (KDP) offers the highest yield at 3.0%, versus 0.5% for Costco Wholesale Corporation (COST).
08Is KDP or WMT or COST 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%, COST: +616.5%), 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 WMT and COST?
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; WMT is a mega-cap quality compounder stock; COST is a large-cap quality compounder stock. KDP, WMT pay a dividend while COST 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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- Sector: Consumer Defensive
- Market Cap > $100B
- Revenue Growth > 5%
- Dividend Yield > 0.5%