PEP vs. T

Last updated Jun 12, 2026

PEP (PepsiCo, Inc.) and T (AT&T Inc.) are both stocks. PEP operates in Beverages - Non-Alcoholic (Consumer Defensive), while T operates in Telecom Services (Communication Services). Over the past 10 years, PEP returned 6.60%/yr vs 3.12%/yr for T. At a 0.32 correlation, their price movements are largely independent.

Performance

PEP vs. T - Performance Comparison

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

Returns By Period

In the year-to-date period, PEP achieves a 2.10% return, which is significantly higher than T's -5.35% return. Over the past 10 years, PEP has outperformed T with an annualized return of 6.60%, while T has yielded a comparatively lower 3.12% annualized return.

PEP

• 1D: -0.41%
• 1M: -4.35%
• YTD: 2.10%
• 6M: -1.68%
• 1Y: 15.03%
• 3Y*: -4.27%
• 5Y*: 2.66%
• 10Y*: 6.60%

T

• 1D: -0.90%
• 1M: -8.84%
• YTD: -5.35%
• 6M: -3.24%
• 1Y: -15.31%
• 3Y*: 19.31%
• 5Y*: 6.85%
• 10Y*: 3.12%

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

PEP vs. T - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
PEP PepsiCo, Inc.	2.10%	-1.85%	-7.60%	-3.29%	6.78%	20.56%	11.67%	27.38%	-4.81%	17.82%
T AT&T Inc.	-5.35%	13.97%	44.08%	-2.74%	5.76%	-8.09%	-21.37%	45.55%	-22.25%	-4.01%

Correlation

The correlation between PEP and T is 0.21, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.21
Correlation (3Y) Calculated over the trailing 3-year period	0.26
Correlation (5Y) Calculated over the trailing 5-year period	0.29
Correlation (10Y) Calculated over the trailing 10-year period	0.32
Correlation (All Time) Calculated using the full available price history since Jul 19, 1984	0.32

The correlation between PEP and T shifts across timeframes, from 0.21 (1 year) to 0.32 (all time), reflecting how their relationship changes across market environments.

Fundamentals

EPS PEP : $6.37 T : $3.04
PE Ratio PEP : 22.55 T : 7.55
PEG Ratio PEP : 7.80 T : 0.31
PS Ratio PEP : 2.07 T : 1.32
Total Revenue (TTM) PEP : $95.45B T : $125.65B
Gross Profit (TTM) PEP : $51.60B T : $105.41B
EBITDA (TTM) PEP : $15.08B T : $54.70B

Return for Risk

PEP vs. T — Risk / Return Rank

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

PEP

PEP Risk / Return Rank: 63
PEP Sharpe Ratio Rank: 67
PEP Sortino Ratio Rank: 63
PEP Omega Ratio Rank: 58
PEP Calmar Ratio Rank: 64
PEP Martin Ratio Rank: 65

T

T Risk / Return Rank: 13
T Sharpe Ratio Rank: 13
T Sortino Ratio Rank: 14
T Omega Ratio Rank: 15
T Calmar Ratio Rank: 17
T Martin Ratio Rank: 8

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. T - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for PepsiCo, Inc. (PEP) and AT&T Inc. (T). 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	T	Difference
Sharpe ratio: Return per unit of total volatility	0.70	-0.70	+1.39
Sortino ratio: Return per unit of downside risk	1.22	-0.90	+2.12
Omega ratio: Gain probability vs. loss probability	1.14	0.90	+0.24
Calmar ratio: Return relative to maximum drawdown	0.93	-0.70	+1.63
Martin ratio: Return relative to average drawdown	2.39	-1.45	+3.84

PEP vs. T - Sharpe Ratio Comparison

The current PEP Sharpe Ratio is 0.70, which is higher than the T Sharpe Ratio of -0.70. The chart below compares the historical Sharpe Ratios of PEP and T, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

PEP vs. T - Drawdown Comparison

The maximum PEP drawdown since its inception was -73.92%, which is greater than T's maximum drawdown of -64.15%. Use the drawdown chart below to compare losses from any high point for PEP and T.

Drawdown Indicators

	PEP	T	Difference
Max Drawdown Largest peak-to-trough decline	-73.92%	-64.15%	-9.77%
Max Drawdown (1Y) Largest decline over 1 year	-16.25%	-21.87%	+5.62%
Max Drawdown (3Y) Largest decline over 3 years	-29.17%	-21.87%	-7.30%
Max Drawdown (5Y) Largest decline over 5 years	-30.32%	-32.01%	+1.69%
Max Drawdown (10Y) Largest decline over 10 years	-30.32%	-42.35%	+12.03%
Current Drawdown Current decline from peak	-18.06%	-20.14%	+2.08%
Average Drawdown Average peak-to-trough decline	-13.65%	-15.72%	+2.07%
Ulcer Index Depth and duration of drawdowns from previous peaks	6.31%	10.57%	-4.26%

Volatility

PEP vs. T - Volatility Comparison

The current volatility for PepsiCo, Inc. (PEP) is 5.59%, while AT&T Inc. (T) has a volatility of 7.86%. This indicates that PEP experiences smaller price fluctuations and is considered to be less risky than T based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PEP	T	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.59%	7.86%	-2.27%
Volatility (6M) Calculated over the trailing 6-month period	15.01%	17.62%	-2.61%
Volatility (1Y) Calculated over the trailing 1-year period	21.76%	21.98%	-0.22%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.39%	24.00%	-5.61%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.67%	23.72%	-4.05%

Dividends

PEP vs. T - Dividend Comparison

PEP's dividend yield for the trailing twelve months is around 4.00%, less than T's 4.83% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
PEP PepsiCo, Inc.	4.00%	3.92%	3.51%	2.91%	2.50%	2.45%	2.71%	2.77%	3.25%	2.64%	2.83%	2.76%
T AT&T Inc.	4.83%	4.47%	4.87%	6.62%	6.66%	8.46%	7.23%	5.22%	7.01%	5.04%	4.51%	5.46%

Financials

Frequently Asked Questions

Can I hold both PEP and T in my portfolio?

PEP and T have a correlation of 0.21, 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 T?

T has higher volatility (7.86%) compared to PEP (5.59%). In terms of maximum drawdown, PEP dropped -73.92% vs T's -64.15%.

Which has better risk-adjusted returns?

PEP currently has the higher Sharpe Ratio (0.70 vs -0.70), 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.