ADT vs. PEP

Last updated Jun 3, 2026

ADT (ADT Inc.) and PEP (PepsiCo, Inc.) are both stocks. ADT operates in Security & Protection Services (Industrials), while PEP operates in Beverages - Non-Alcoholic (Consumer Defensive). Over the past 5 years, ADT returned -6.15%/yr vs 2.20%/yr for PEP. At a 0.15 correlation, their price movements are largely independent.

Performance

ADT vs. PEP - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in ADT Inc. (ADT) and PepsiCo, Inc. (PEP). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, ADT achieves a -15.15% return, which is significantly lower than PEP's -0.18% return.

ADT

• 1D: 0.74%
• 1M: -10.07%
• YTD: -15.15%
• 6M: -15.10%
• 1Y: -18.30%
• 3Y*: 6.99%
• 5Y*: -6.15%
• 10Y*: —

PEP

• 1D: 0.34%
• 1M: -9.79%
• YTD: -0.18%
• 6M: -2.65%
• 1Y: 12.81%
• 3Y*: -5.36%
• 5Y*: 2.20%
• 10Y*: 6.41%

*Multi-year figures are annualized to reflect compound growth (CAGR)

ADT vs. PEP - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018
ADT ADT Inc.	-15.15%	20.02%	4.53%	-23.14%	9.80%	8.86%	1.02%	45.94%	-50.67%
PEP PepsiCo, Inc.	-0.18%	-1.85%	-7.60%	-3.29%	6.78%	20.56%	11.67%	27.38%	-5.01%

Correlation

The correlation between ADT and PEP is 0.13, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.13
Correlation (3Y) Calculated over the trailing 3-year period	0.12
Correlation (5Y) Calculated over the trailing 5-year period	0.15
Correlation (All Time) Calculated using the full available price history since Jan 22, 2018	0.15

Fundamentals

Market Cap ADT : $5.58B PEP : $194.68B
EPS ADT : $0.73 PEP : $6.37
PE Ratio ADT : 9.33 PEP : 22.28
PEG Ratio ADT : 0.25 PEP : 7.71
PS Ratio ADT : 1.13 PEP : 2.04
PB Ratio ADT : 1.47 PEP : 9.10
Total Revenue (TTM) ADT : $5.14B PEP : $95.45B
Gross Profit (TTM) ADT : $4.55B PEP : $51.60B
EBITDA (TTM) ADT : $2.46B PEP : $15.08B

Return for Risk

ADT vs. PEP — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

ADT

ADT Risk / Return Rank: 14
ADT Sharpe Ratio Rank: 12
ADT Sortino Ratio Rank: 14
ADT Omega Ratio Rank: 13
ADT Calmar Ratio Rank: 19
ADT Martin Ratio Rank: 10

PEP

PEP Risk / Return Rank: 57
PEP Sharpe Ratio Rank: 60
PEP Sortino Ratio Rank: 55
PEP Omega Ratio Rank: 51
PEP Calmar Ratio Rank: 57
PEP Martin Ratio Rank: 61

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

ADT vs. PEP - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for ADT Inc. (ADT) and PepsiCo, Inc. (PEP). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	ADT	PEP	Difference
Sharpe ratio Return per unit of total volatility	-0.68	0.59	-1.28
Sortino ratio Return per unit of downside risk	-0.76	1.07	-1.83
Omega ratio Gain probability vs. loss probability	0.89	1.12	-0.23
Calmar ratio Return relative to maximum drawdown	-0.60	0.76	-1.36
Martin ratio Return relative to average drawdown	-1.32	2.13	-3.45
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

ADT vs. PEP - Sharpe Ratio Comparison

The current ADT Sharpe Ratio is -0.68, which is lower than the PEP Sharpe Ratio of 0.59. The chart below compares the historical Sharpe Ratios of ADT and PEP, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	ADT	PEP	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	-0.68	0.59	-1.28
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	-0.16	0.12	-0.28
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.33	—
Sharpe Ratio (All Time) Calculated using the full available price history	-0.08	0.38	-0.46

Drawdowns

ADT vs. PEP - Drawdown Comparison

The maximum ADT drawdown since its inception was -67.19%, smaller than the maximum PEP drawdown of -73.92%. Use the drawdown chart below to compare losses from any high point for ADT and PEP.

Drawdown Indicators

	ADT	PEP	Difference
Max Drawdown Largest peak-to-trough decline	-67.19%	-73.92%	+6.73%
Max Drawdown (1Y) Largest decline over 1 year	-26.80%	-16.25%	-10.55%
Max Drawdown (3Y) Largest decline over 3 years	-26.80%	-29.17%	+2.37%
Max Drawdown (5Y) Largest decline over 5 years	-54.36%	-30.32%	-24.04%
Max Drawdown (10Y) Largest decline over 10 years	—	-30.32%	—
Current Drawdown Current decline from peak	-42.60%	-19.89%	-22.71%
Average Drawdown Average peak-to-trough decline	-38.91%	-13.64%	-25.27%
Ulcer Index Depth and duration of drawdowns from previous peaks	12.18%	5.79%	+6.39%

Volatility

ADT vs. PEP - Volatility Comparison

ADT Inc. (ADT) has a higher volatility of 8.03% compared to PepsiCo, Inc. (PEP) at 6.45%. This indicates that ADT's price experiences larger fluctuations and is considered to be riskier than PEP based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ADT	PEP	Difference
Volatility (1M) Calculated over the trailing 1-month period	8.03%	6.45%	+1.58%
Volatility (6M) Calculated over the trailing 6-month period	21.20%	14.91%	+6.29%
Volatility (1Y) Calculated over the trailing 1-year period	27.01%	21.71%	+5.30%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	37.84%	18.38%	+19.46%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	48.22%	19.66%	+28.56%

Dividends

ADT vs. PEP - Dividend Comparison

ADT's dividend yield for the trailing twelve months is around 3.24%, less than PEP's 4.01% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ADT ADT Inc.	3.24%	2.73%	3.18%	2.05%	1.54%	1.66%	1.78%	10.59%	2.33%	0.00%	0.00%	0.00%
PEP PepsiCo, Inc.	4.01%	3.92%	3.51%	2.91%	2.50%	2.45%	2.71%	2.77%	3.25%	2.64%	2.83%	2.76%

Financials

ADT vs. PEP - Profitability Comparison

The chart below illustrates the profitability comparison between ADT Inc. and PepsiCo, Inc. over time, highlighting three key metrics: Gross Profit Margin, Operating Margin, and Net Profit Margin.

ADT - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, ADT Inc. reported a gross profit of 1.04B and revenue of 1.28B. Therefore, the gross margin over that period was 81.0%.

PEP - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, PepsiCo, Inc. reported a gross profit of 10.73B and revenue of 19.44B. Therefore, the gross margin over that period was 55.2%.

ADT - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, ADT Inc. reported an operating income of 325.00M and revenue of 1.28B, resulting in an operating margin of 25.4%.

PEP - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, PepsiCo, Inc. reported an operating income of 3.21B and revenue of 19.44B, resulting in an operating margin of 16.5%.

ADT - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, ADT Inc. reported a net income of 168.00M and revenue of 1.28B, resulting in a net margin of 13.1%.

PEP - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, PepsiCo, Inc. reported a net income of 2.34B and revenue of 19.44B, resulting in a net margin of 12.0%.

Frequently Asked Questions

Can I hold both ADT and PEP in my portfolio?

ADT and PEP have a correlation of 0.13, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, ADT or PEP?

ADT has higher volatility (8.03%) compared to PEP (6.45%). In terms of maximum drawdown, ADT dropped -67.19% vs PEP's -73.92%.

Which has better risk-adjusted returns?

PEP currently has the higher Sharpe Ratio (0.59 vs -0.68), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.