Apple vs PepsiCo: Business Model & Financial Comparison 2026
Apple · Technology / Consumer Electronics·PepsiCo · Consumer Defensive / Beverages - Non-Alcoholic
Financial Comparison
| Metric | AAPLApple | PEPPepsiCo |
|---|---|---|
| Market Cap | $3.83T | $218.98B |
| Revenue (TTM) | $435.62B | $93.92B |
| Revenue Growth | 15.7% | 5.6% |
| Gross Margin | 47.3% | 54.5% |
| Operating Margin | 35.4% | 14.1% |
| Net Margin | 27.0% | 8.8% |
| Return on Equity | 152.0% | 42.8% |
| P/E (Trailing) | 33.0x | 26.6x |
| P/E (Forward) | 28.1x | 17.5x |
| Free Cash Flow | $106.31B | $8.23B |
| Cash | $66.91B | $9.53B |
| Total Debt | $90.51B | $53.03B |
Data sourced from Yahoo Finance. Green highlights indicate better performance for that metric. Use the interactive tool for real-time data.
Business Model Comparison
Apple
Apple stands as the world's most valuable company and leader in consumer electronics. Generating $435.62 billion in annual revenue (growing 15.7% year-over-year) and carrying a market capitalization of $3.83 trillion, the company has cemented its position as a foundational player in the global Consumer Electronics landscape. Under the leadership of Tim Cook, Apple continues to execute on a multi-year strategic vision that balances growth investme…
Full Apple analysis →PepsiCo
PepsiCo, Inc. stands as a leading company in Consumer Defensive. Generating $93.92 billion in annual revenue (growing 5.6% year-over-year) and carrying a market capitalization of $219.73 billion, the company has cemented its position as a foundational player in the global Beverages - Non-Alcoholic landscape. Under the leadership of its leadership team, PepsiCo, Inc. continues to execute on a multi-year strategic vision that balances growth invest…
Full PepsiCo analysis →SWOT Analysis Comparison
Strengths
Apple
- With a market capitalization of $3.83T, Apple is one of the largest companies in its sector, providing the scale advantages of brand recognition, supplier leverage, and capital access that smaller com
- Apple's gross margin of 47.3% is well above industry averages, reflecting pricing power, operational efficiency, or a high-value product mix. The operating margin of 35.4% demonstrates disciplined cos
- Revenue grew 15.7% year-over-year to $435.62B, indicating strong demand for Apple's products and services and outperformance relative to many industry peers.
PepsiCo
- With a market capitalization of $219.73B, PepsiCo, Inc. is one of the largest companies in its sector, providing the scale advantages of brand recognition, supplier leverage, and capital access that s
- PepsiCo, Inc.'s gross margin of 54.5% is well above industry averages, reflecting pricing power, operational efficiency, or a high-value product mix. The operating margin of 14.1% demonstrates discipl
- A return on equity of 42.8% demonstrates that PepsiCo, Inc. generates strong returns from shareholder capital, a hallmark of companies with durable competitive advantages.
Weaknesses
Apple
- With a debt-to-equity ratio of 102.6, Apple carries significant debt relative to equity. While manageable given its cash flow, elevated leverage limits financial flexibility and increases vulnerabilit
- With 150,000 employees globally, Apple faces inherent challenges in agility, decision-making speed, and maintaining a consistent culture across geographies — advantages that smaller, nimbler competito
- iPhone revenue still represents 52% of total sales — over-reliance on a single product
PepsiCo
- With a debt-to-equity ratio of 258.1, PepsiCo, Inc. carries significant debt relative to equity. While manageable given its cash flow, elevated leverage limits financial flexibility and increases vuln
- With 306,000 employees globally, PepsiCo, Inc. faces inherent challenges in agility, decision-making speed, and maintaining a consistent culture across geographies — advantages that smaller, nimbler c
Opportunities
Apple
- The rapid advancement of generative AI and large language models presents Apple with opportunities to automate operations, enhance products, and develop new AI-native services. Companies in Technology
- Apple operates in the Consumer Electronics segment of the broader Technology sector, which represents a $5.0 trillion by 2027 (IDC Global Technology Market). Even modest share gains in this environmen
- Emerging markets — particularly India (1.4B people, rapidly growing middle class), Southeast Asia (700M people), and Sub-Saharan Africa — represent significant untapped addressable markets for Apple's
PepsiCo
- PepsiCo, Inc. operates in the Beverages - Non-Alcoholic segment of the broader Consumer Defensive sector, which represents a $12 trillion global consumer staples market. Even modest share gains in thi
- Emerging markets — particularly India (1.4B people, rapidly growing middle class), Southeast Asia (700M people), and Sub-Saharan Africa — represent significant untapped addressable markets for PepsiCo
- Earnings growth of 67.5% YoY demonstrates PepsiCo, Inc.'s ability to convert revenue growth into shareholder value. Analysts project continued earnings expansion driven by operating leverage as fixed
Threats
Apple
- Global economic slowdowns, inflation, or rising interest rates can reduce consumer and enterprise spending. Apple's revenue is not fully insulated from macroeconomic cycles, and a recession scenario c
- Increasing government regulation — particularly data privacy laws (GDPR, CCPA), antitrust enforcement, and trade restrictions — poses compliance costs and potential restrictions on Apple's business mo
- The technology sector evolves at a pace where today's competitive advantages can erode quickly. New entrants with AI-native approaches, open-source alternatives, or disruptive business models could ch
PepsiCo
- Global economic slowdowns, inflation, or rising interest rates can reduce consumer and enterprise spending. PepsiCo, Inc.'s revenue is not fully insulated from macroeconomic cycles, and a recession sc
- Increasing government regulation — particularly data privacy laws (GDPR, CCPA), antitrust enforcement, and trade restrictions — poses compliance costs and potential restrictions on PepsiCo, Inc.'s bus
- Competition for skilled technology, engineering, and management talent remains intense. High employee turnover or inability to attract top talent could slow innovation and execution — particularly cri
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Open Comparison ToolApple vs PepsiCo: FAQ
- Is Apple bigger than PepsiCo?
- By market capitalization, Apple is larger at $3.83T vs PepsiCo's $218.98B.
- Which has better profit margins — Apple or PepsiCo?
- Apple has higher net profit margins (27.0%) compared to PepsiCo (8.8%). Gross and operating margins are compared in the table above.
- What sectors do Apple and PepsiCo operate in?
- Apple operates in the Technology sector (Consumer Electronics). PepsiCo operates in the Consumer Defensive sector (Beverages - Non-Alcoholic).
- How does Apple's revenue compare to PepsiCo's?
- Apple generates $435.62B in annual revenue (TTM) while PepsiCo generates $93.92B. Apple is the larger company by revenue as of 2026.