PEP vs. KDP

Last updated Jun 3, 2026

PEP (PepsiCo, Inc.) and KDP (Keurig Dr Pepper Inc.) are both stocks. Both operate in the Beverages - Non-Alcoholic industry within the Consumer Defensive sector. Over the past 10 years, PEP returned 6.41%/yr vs 9.93%/yr for KDP. A 0.52 correlation means they provide meaningful diversification when combined.

Performance

PEP vs. KDP - Performance Comparison

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

Returns By Period

In the year-to-date period, PEP achieves a -0.18% return, which is significantly lower than KDP's 10.25% return. Over the past 10 years, PEP has underperformed KDP with an annualized return of 6.41%, while KDP has yielded a comparatively higher 9.93% annualized return.

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%

KDP

• 1D: 0.53%
• 1M: 4.37%
• YTD: 10.25%
• 6M: 9.78%
• 1Y: -5.63%
• 3Y*: 1.72%
• 5Y*: -1.32%
• 10Y*: 9.93%

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

PEP vs. KDP - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
PEP PepsiCo, Inc.	-0.18%	-1.85%	-7.60%	-3.29%	6.78%	20.56%	11.67%	27.38%	-4.81%	17.82%
KDP Keurig Dr Pepper Inc.	10.25%	-10.14%	-1.05%	-4.24%	-1.23%	17.49%	13.03%	15.43%	65.97%	9.76%

Correlation

The correlation between PEP and KDP is 0.51, 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	0.51
Correlation (3Y) Calculated over the trailing 3-year period	0.55
Correlation (5Y) Calculated over the trailing 5-year period	0.60
Correlation (10Y) Calculated over the trailing 10-year period	0.53
Correlation (All Time) Calculated using the full available price history since Apr 29, 2008	0.52

The correlation between PEP and KDP has been stable across timeframes, ranging from 0.51 to 0.60 - a consistent structural relationship.

Fundamentals

Market Cap PEP : $194.68B KDP : $41.40B
EPS PEP : $6.37 KDP : $1.34
PE Ratio PEP : 22.28 KDP : 22.59
PEG Ratio PEP : 7.71 KDP : 2.72
PS Ratio PEP : 2.04 KDP : 2.44
PB Ratio PEP : 9.10 KDP : 1.99
Total Revenue (TTM) PEP : $95.45B KDP : $16.94B
Gross Profit (TTM) PEP : $51.60B KDP : $9.11B
EBITDA (TTM) PEP : $15.08B KDP : $3.70B

Return for Risk

PEP vs. KDP — Risk / Return Rank

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

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

KDP

KDP Risk / Return Rank: 30
KDP Sharpe Ratio Rank: 32
KDP Sortino Ratio Rank: 27
KDP Omega Ratio Rank: 27
KDP Calmar Ratio Rank: 32
KDP Martin Ratio Rank: 33

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.

PEP vs. KDP - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for PepsiCo, Inc. (PEP) and Keurig Dr Pepper Inc. (KDP). 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.

	PEP	KDP	Difference
Sharpe ratio Return per unit of total volatility	0.59	-0.20	+0.80
Sortino ratio Return per unit of downside risk	1.07	-0.09	+1.16
Omega ratio Gain probability vs. loss probability	1.12	0.99	+0.13
Calmar ratio Return relative to maximum drawdown	0.76	-0.25	+1.01
Martin ratio Return relative to average drawdown	2.13	-0.38	+2.52
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

PEP vs. KDP - Sharpe Ratio Comparison

The current PEP Sharpe Ratio is 0.59, which is higher than the KDP Sharpe Ratio of -0.20. The chart below compares the historical Sharpe Ratios of PEP and KDP, 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

	PEP	KDP	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.59	-0.20	+0.80
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.12	-0.06	+0.18
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.33	0.42	-0.09
Sharpe Ratio (All Time) Calculated using the full available price history	0.38	0.56	-0.18

Drawdowns

PEP vs. KDP - Drawdown Comparison

The maximum PEP drawdown since its inception was -73.92%, which is greater than KDP's maximum drawdown of -57.42%. Use the drawdown chart below to compare losses from any high point for PEP and KDP.

Drawdown Indicators

	PEP	KDP	Difference
Max Drawdown Largest peak-to-trough decline	-73.92%	-57.42%	-16.50%
Max Drawdown (1Y) Largest decline over 1 year	-16.25%	-27.48%	+11.23%
Max Drawdown (3Y) Largest decline over 3 years	-29.17%	-30.99%	+1.82%
Max Drawdown (5Y) Largest decline over 5 years	-30.32%	-31.20%	+0.88%
Max Drawdown (10Y) Largest decline over 10 years	-30.32%	-36.87%	+6.55%
Current Drawdown Current decline from peak	-19.89%	-16.02%	-3.87%
Average Drawdown Average peak-to-trough decline	-13.64%	-8.57%	-5.07%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.79%	17.79%	-12.00%

Volatility

PEP vs. KDP - Volatility Comparison

PepsiCo, Inc. (PEP) has a higher volatility of 6.45% compared to Keurig Dr Pepper Inc. (KDP) at 4.71%. This indicates that PEP's price experiences larger fluctuations and is considered to be riskier than KDP based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PEP	KDP	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.45%	4.71%	+1.74%
Volatility (6M) Calculated over the trailing 6-month period	14.91%	16.87%	-1.96%
Volatility (1Y) Calculated over the trailing 1-year period	21.71%	27.67%	-5.96%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.38%	21.11%	-2.73%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.66%	23.85%	-4.19%

Dividends

PEP vs. KDP - Dividend Comparison

PEP's dividend yield for the trailing twelve months is around 4.01%, more than KDP's 3.03% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
KDP Keurig Dr Pepper Inc.	3.03%	3.28%	2.72%	2.45%	2.14%	1.83%	1.88%	2.07%	407.49%	2.39%	2.34%	2.06%
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

PEP vs. KDP - Profitability Comparison

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

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%.

KDP - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Keurig Dr Pepper Inc. reported a gross profit of 2.10B and revenue of 3.98B. Therefore, the gross margin over that period was 52.8%.

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%.

KDP - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Keurig Dr Pepper Inc. reported an operating income of 756.00M and revenue of 3.98B, resulting in an operating margin of 19.0%.

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%.

KDP - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Keurig Dr Pepper Inc. reported a net income of 270.00M and revenue of 3.98B, resulting in a net margin of 6.8%.

Frequently Asked Questions

Can I hold both PEP and KDP in my portfolio?

PEP and KDP have a correlation of 0.51, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, PEP or KDP?

PEP has higher volatility (6.45%) compared to KDP (4.71%). In terms of maximum drawdown, PEP dropped -73.92% vs KDP's -57.42%.

Which has better risk-adjusted returns?

PEP currently has the higher Sharpe Ratio (0.59 vs -0.20), 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.