T vs. PEP

Last updated Jun 12, 2026

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

Performance

T vs. PEP - Performance Comparison

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

Returns By Period

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

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%

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%

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

T vs. PEP - Yearly Performance Comparison

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

Correlation

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

Fundamentals

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

Return for Risk

T vs. PEP — Risk / Return Rank

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

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

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

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.

T vs. PEP - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for AT&T Inc. (T) 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.

	T	PEP	Difference
Sharpe ratio: Return per unit of total volatility	-0.70	0.70	-1.39
Sortino ratio: Return per unit of downside risk	-0.90	1.22	-2.12
Omega ratio: Gain probability vs. loss probability	0.90	1.14	-0.24
Calmar ratio: Return relative to maximum drawdown	-0.70	0.93	-1.63
Martin ratio: Return relative to average drawdown	-1.45	2.39	-3.84

T vs. PEP - Sharpe Ratio Comparison

The current T Sharpe Ratio is -0.70, which is lower than the PEP Sharpe Ratio of 0.70. The chart below compares the historical Sharpe Ratios of T 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.

Drawdowns

T vs. PEP - Drawdown Comparison

The maximum T drawdown since its inception was -64.15%, smaller than the maximum PEP drawdown of -73.92%. Use the drawdown chart below to compare losses from any high point for T and PEP.

Drawdown Indicators

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

Volatility

T vs. PEP - Volatility Comparison

AT&T Inc. (T) has a higher volatility of 7.86% compared to PepsiCo, Inc. (PEP) at 5.59%. This indicates that T'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

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

Dividends

T vs. PEP - Dividend Comparison

T's dividend yield for the trailing twelve months is around 4.83%, more than PEP's 4.00% 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 T and PEP in my portfolio?

T and PEP 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, T or PEP?

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

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.