KO vs. PEP
KO (The Coca-Cola Company) and PEP (PepsiCo, Inc.) are both stocks. Both operate in the Beverages - Non-Alcoholic industry within the Consumer Defensive sector. Over the past 10 years, KO returned 9.37%/yr vs 6.74%/yr for PEP. A 0.51 correlation means they provide meaningful diversification when combined.
Performance
KO vs. PEP - Performance Comparison
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Returns By Period
In the year-to-date period, KO achieves a 16.37% return, which is significantly higher than PEP's 3.80% return. Over the past 10 years, KO has outperformed PEP with an annualized return of 9.37%, while PEP has yielded a comparatively lower 6.74% annualized return.
KO
- 1D
- -0.78%
- 1M
- -0.03%
- YTD
- 16.37%
- 6M
- 15.61%
- 1Y
- 17.06%
- 3Y*
- 12.45%
- 5Y*
- 11.12%
- 10Y*
- 9.37%
PEP
- 1D
- -0.09%
- 1M
- -0.98%
- YTD
- 3.80%
- 6M
- -0.93%
- 1Y
- 15.60%
- 3Y*
- -4.46%
- 5Y*
- 2.88%
- 10Y*
- 6.74%
KO vs. PEP - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
KO The Coca-Cola Company | 16.37% | 15.60% | 8.88% | -4.43% | 10.61% | 11.37% | 2.47% | 20.60% | 6.77% | 14.38% |
PEP PepsiCo, Inc. | 3.80% | -1.85% | -7.60% | -3.29% | 6.78% | 20.56% | 11.67% | 27.38% | -4.81% | 17.82% |
Correlation
The correlation between KO and PEP is 0.59, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.59 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.64 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.69 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.69 |
Correlation (All Time) Calculated using the full available price history since Jan 13, 1978 | 0.51 |
The correlation between KO and PEP shifts across timeframes, from 0.51 (all time) to 0.69 (5 years), reflecting how their relationship changes across market environments.
Fundamentals
KO:
$346.33B
PEP:
$200.33B
KO:
$3.18
PEP:
$6.38
KO:
25.28
PEP:
22.92
KO:
3.05
PEP:
7.93
KO:
7.03
PEP:
2.10
KO:
10.30
PEP:
9.37
KO:
$49.28B
PEP:
$95.45B
KO:
$30.43B
PEP:
$51.60B
KO:
$18.35B
PEP:
$15.08B
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Return for Risk
KO vs. PEP — Risk / Return Rank
KO
PEP
KO vs. PEP - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for The Coca-Cola Company (KO) 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.
Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.
| KO | PEP | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.30 | ||
| Sortino ratioReturn per unit of downside risk | +0.41 | ||
| Omega ratioGain probability vs. loss probability | 1.18 | 1.14 | +0.04 |
| Calmar ratioReturn relative to maximum drawdown | 2.18 | 0.96 | +1.21 |
| Martin ratioReturn relative to average drawdown | 4.36 | 2.42 | +1.94 |
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Drawdowns
KO vs. PEP - Drawdown Comparison
The maximum KO drawdown since its inception was -68.23%, smaller than the maximum PEP drawdown of -73.92%. Use the drawdown chart below to compare losses from any high point for KO and PEP.
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Drawdown Indicators
| KO | PEP | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -68.23% | -73.92% | +5.69% |
Max Drawdown (1Y)Largest decline over 1 year | -7.87% | -16.25% | +8.38% |
Max Drawdown (3Y)Largest decline over 3 years | -16.26% | -29.17% | +12.91% |
Max Drawdown (5Y)Largest decline over 5 years | -17.27% | -30.32% | +13.05% |
Max Drawdown (10Y)Largest decline over 10 years | -36.99% | -30.32% | -6.67% |
Current DrawdownCurrent decline from peak | -3.34% | -16.70% | +13.36% |
Average DrawdownAverage peak-to-trough decline | -16.08% | -13.65% | -2.43% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 3.93% | 6.46% | -2.53% |
Volatility
KO vs. PEP - Volatility Comparison
The Coca-Cola Company (KO) has a higher volatility of 6.92% compared to PepsiCo, Inc. (PEP) at 5.56%. This indicates that KO'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.
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Volatility by Period
| KO | PEP | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 6.92% | 5.56% | +1.36% |
Volatility (6M)Calculated over the trailing 6-month period | 12.74% | 14.63% | -1.89% |
Volatility (1Y)Calculated over the trailing 1-year period | 16.79% | 21.65% | -4.86% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 16.19% | 18.40% | -2.21% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 18.25% | 19.68% | -1.43% |
Dividends
KO vs. PEP - Dividend Comparison
KO's dividend yield for the trailing twelve months is around 2.59%, less than PEP's 3.93% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
KO The Coca-Cola Company | 2.59% | 2.92% | 3.12% | 3.12% | 2.77% | 2.84% | 2.99% | 2.89% | 3.29% | 3.23% | 3.38% | 3.07% |
PEP PepsiCo, Inc. | 3.93% | 3.92% | 3.51% | 2.91% | 2.50% | 2.45% | 2.71% | 2.77% | 3.25% | 2.64% | 2.83% | 2.76% |
Financials
KO vs. PEP - Financials Comparison
This section allows you to compare key financial metrics between The Coca-Cola Company and PepsiCo, Inc.. You can select fields from income statements, balance sheets, and cash flow statements to easily visualize and compare the financial health of both companies.
Total Revenue: Total amount of money received from sales and other business activities
KO vs. PEP - Profitability Comparison
KO - Gross Margin
Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, The Coca-Cola Company reported a gross profit of 7.85B and revenue of 12.47B. Therefore, the gross margin over that period was 63.0%.
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%.
KO - Operating Margin
Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, The Coca-Cola Company reported an operating income of 4.36B and revenue of 12.47B, resulting in an operating margin of 35.0%.
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%.
KO - Net Margin
Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, The Coca-Cola Company reported a net income of 3.92B and revenue of 12.47B, resulting in a net margin of 31.5%.
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
KO and PEP have a correlation of 0.59, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
KO has higher volatility (6.92%) compared to PEP (5.56%). In terms of maximum drawdown, KO dropped -68.23% vs PEP's -73.92%.
KO currently has the higher Sharpe Ratio (1.02 vs 0.72), 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.
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