Coca-Cola vs PepsiCo: Business Model & Financial Comparison 2026
Coca-Cola · Consumer Defensive / Beverages - Non-Alcoholic·PepsiCo · Consumer Defensive / Beverages - Non-Alcoholic
Financial Comparison
| Metric | KOCoca-Cola | PEPPepsiCo |
|---|---|---|
| Market Cap | $331.40B | $218.00B |
| Revenue (TTM) | $47.94B | $93.92B |
| Revenue Growth | 2.4% | 5.6% |
| Gross Margin | 61.6% | 54.5% |
| Operating Margin | 24.7% | 14.1% |
| Net Margin | 27.3% | 8.8% |
| Return on Equity | 43.3% | 42.8% |
| P/E (Trailing) | 25.3x | 26.6x |
| P/E (Forward) | 22.2x | 17.5x |
| Free Cash Flow | $-1.46B | $8.23B |
| Cash | $15.81B | $9.53B |
| Total Debt | $47.91B | $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
Coca-Cola
The Coca-Cola Company stands as a leading company in Consumer Defensive. Generating $47.94 billion in annual revenue (growing 2.4% year-over-year) and carrying a market capitalization of $331.35 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, The Coca-Cola Company continues to execute on a multi-year strategic vision that balanc…
Full Coca-Cola 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
Coca-Cola
- With a market capitalization of $331.35B, The Coca-Cola Company is one of the largest companies in its sector, providing the scale advantages of brand recognition, supplier leverage, and capital acces
- The Coca-Cola Company's gross margin of 61.6% is well above industry averages, reflecting pricing power, operational efficiency, or a high-value product mix. The operating margin of 24.7% demonstrates
- A return on equity of 43.3% demonstrates that The Coca-Cola Company generates strong returns from shareholder capital, a hallmark of companies with durable competitive advantages.
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
Coca-Cola
- With a debt-to-equity ratio of 139.8, The Coca-Cola Company carries significant debt relative to equity. While manageable given its cash flow, elevated leverage limits financial flexibility and increa
- Revenue growth of 2.4% is below what growth investors typically seek, suggesting market saturation in core businesses or increasing competitive pressure.
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
Coca-Cola
- The Coca-Cola Company 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 gain
- 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 The Coc
- With $15.81B in cash and strong free cash flow generation, The Coca-Cola Company is well-positioned to pursue strategic acquisitions that expand its capabilities, customer base, or geographic reach.
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
Coca-Cola
- Global economic slowdowns, inflation, or rising interest rates can reduce consumer and enterprise spending. The Coca-Cola Company's revenue is not fully insulated from macroeconomic cycles, and a rece
- Increasing government regulation — particularly data privacy laws (GDPR, CCPA), antitrust enforcement, and trade restrictions — poses compliance costs and potential restrictions on The Coca-Cola Compa
- 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
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 ToolCoca-Cola vs PepsiCo: FAQ
- Is Coca-Cola bigger than PepsiCo?
- By market capitalization, Coca-Cola is larger at $331.40B vs PepsiCo's $218.00B.
- Which has better profit margins — Coca-Cola or PepsiCo?
- Coca-Cola has higher net profit margins (27.3%) compared to PepsiCo (8.8%). Gross and operating margins are compared in the table above.
- What sectors do Coca-Cola and PepsiCo operate in?
- Coca-Cola operates in the Consumer Defensive sector (Beverages - Non-Alcoholic). PepsiCo operates in the Consumer Defensive sector (Beverages - Non-Alcoholic).
- How does Coca-Cola's revenue compare to PepsiCo's?
- Coca-Cola generates $47.94B in annual revenue (TTM) while PepsiCo generates $93.92B. PepsiCo is the larger company by revenue as of 2026.