PEP vs. CAT
PEP (PepsiCo, Inc.) and CAT (Caterpillar Inc.) are both stocks. PEP operates in Beverages - Non-Alcoholic (Consumer Defensive), while CAT operates in Farm & Heavy Construction Machinery (Industrials). Over the past 10 years, PEP returned 6.62%/yr vs 31.33%/yr for CAT. At a 0.24 correlation, their price movements are largely independent.
Performance
PEP vs. CAT - Performance Comparison
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Returns By Period
In the year-to-date period, PEP achieves a 2.49% return, which is significantly lower than CAT's 59.62% return. Over the past 10 years, PEP has underperformed CAT with an annualized return of 6.62%, while CAT has yielded a comparatively higher 31.33% annualized return.
PEP
- 1D
- 0.38%
- 1M
- -2.23%
- YTD
- 2.49%
- 6M
- -2.36%
- 1Y
- 14.62%
- 3Y*
- -4.09%
- 5Y*
- 2.73%
- 10Y*
- 6.62%
CAT
- 1D
- 1.44%
- 1M
- 2.51%
- YTD
- 59.62%
- 6M
- 52.94%
- 1Y
- 157.79%
- 3Y*
- 57.16%
- 5Y*
- 35.17%
- 10Y*
- 31.33%
PEP vs. CAT - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
PEP PepsiCo, Inc. | 2.49% | -1.85% | -7.60% | -3.29% | 6.78% | 20.56% | 11.67% | 27.38% | -4.81% | 17.82% |
CAT Caterpillar Inc. | 59.62% | 60.30% | 24.66% | 25.95% | 18.60% | 15.95% | 26.97% | 19.51% | -17.56% | 75.03% |
Correlation
The correlation between PEP and CAT is 0.03, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.03 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.10 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.13 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.17 |
Correlation (All Time) Calculated using the full available price history since Jan 13, 1978 | 0.24 |
Over the past year, the correlation between PEP and CAT has dropped to 0.03 - well below their long-term average of 0.24, suggesting their price drivers have been diverging.
Fundamentals
PEP:
$197.79B
CAT:
$424.14B
PEP:
$6.37
CAT:
$20.07
PEP:
22.64
CAT:
45.37
PEP:
7.83
CAT:
3.00
PEP:
2.07
CAT:
6.04
PEP:
9.25
CAT:
22.73
PEP:
$95.45B
CAT:
$70.76B
PEP:
$51.60B
CAT:
$23.01B
PEP:
$15.08B
CAT:
$15.31B
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Return for Risk
PEP vs. CAT — Risk / Return Rank
PEP
CAT
PEP vs. CAT - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for PepsiCo, Inc. (PEP) and Caterpillar Inc. (CAT). 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.
| PEP | CAT | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -3.81 | ||
| Sortino ratioReturn per unit of downside risk | -3.92 | ||
| Omega ratioGain probability vs. loss probability | 1.12 | 1.65 | -0.52 |
| Calmar ratioReturn relative to maximum drawdown | 0.83 | 11.24 | -10.41 |
| Martin ratioReturn relative to average drawdown | 2.11 | 36.80 | -34.69 |
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Drawdowns
PEP vs. CAT - Drawdown Comparison
The maximum PEP drawdown since its inception was -73.92%, roughly equal to the maximum CAT drawdown of -73.43%. Use the drawdown chart below to compare losses from any high point for PEP and CAT.
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Drawdown Indicators
| PEP | CAT | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -73.92% | -73.43% | -0.49% |
Max Drawdown (1Y)Largest decline over 1 year | -16.25% | -13.88% | -2.37% |
Max Drawdown (3Y)Largest decline over 3 years | -29.17% | -34.05% | +4.88% |
Max Drawdown (5Y)Largest decline over 5 years | -30.32% | -34.05% | +3.73% |
Max Drawdown (10Y)Largest decline over 10 years | -30.32% | -43.36% | +13.04% |
Current DrawdownCurrent decline from peak | -17.75% | -3.18% | -14.57% |
Average DrawdownAverage peak-to-trough decline | -13.65% | -19.73% | +6.08% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 6.37% | 4.23% | +2.14% |
Volatility
PEP vs. CAT - Volatility Comparison
The current volatility for PepsiCo, Inc. (PEP) is 5.39%, while Caterpillar Inc. (CAT) has a volatility of 13.16%. This indicates that PEP experiences smaller price fluctuations and is considered to be less risky than CAT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| PEP | CAT | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 5.39% | 13.16% | -7.77% |
Volatility (6M)Calculated over the trailing 6-month period | 14.62% | 28.37% | -13.75% |
Volatility (1Y)Calculated over the trailing 1-year period | 21.71% | 35.19% | -13.48% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 18.39% | 30.79% | -12.40% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 19.67% | 30.98% | -11.31% |
Dividends
PEP vs. CAT - Dividend Comparison
PEP's dividend yield for the trailing twelve months is around 3.98%, more than CAT's 0.66% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
CAT Caterpillar Inc. | 0.66% | 1.02% | 1.49% | 1.69% | 1.93% | 2.07% | 2.26% | 2.56% | 2.58% | 1.97% | 3.32% | 4.33% |
PEP PepsiCo, Inc. | 3.98% | 3.92% | 3.51% | 2.91% | 2.50% | 2.45% | 2.71% | 2.77% | 3.25% | 2.64% | 2.83% | 2.76% |
Financials
PEP vs. CAT - Financials Comparison
This section allows you to compare key financial metrics between PepsiCo, Inc. and Caterpillar 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
PEP vs. CAT - Profitability Comparison
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%.
CAT - Gross Margin
Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Caterpillar Inc. reported a gross profit of 6.11B and revenue of 17.42B. Therefore, the gross margin over that period was 35.1%.
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%.
CAT - Operating Margin
Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Caterpillar Inc. reported an operating income of 3.09B and revenue of 17.42B, resulting in an operating margin of 17.7%.
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%.
CAT - Net Margin
Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Caterpillar Inc. reported a net income of 2.55B and revenue of 17.42B, resulting in a net margin of 14.6%.
Frequently Asked Questions
PEP and CAT have a correlation of 0.03, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
CAT has higher volatility (13.16%) compared to PEP (5.39%). In terms of maximum drawdown, PEP dropped -73.92% vs CAT's -73.43%.
CAT currently has the higher Sharpe Ratio (4.43 vs 0.62), 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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