TSN vs. PEP

Last updated Jun 9, 2026

TSN (Tyson Foods, Inc.) and PEP (PepsiCo, Inc.) are both stocks. Both are in the Consumer Defensive sector — TSN in Farm Products, PEP in Beverages - Non-Alcoholic. Over the past 10 years, TSN returned 1.94%/yr vs 6.34%/yr for PEP. At a 0.26 correlation, their price movements are largely independent.

Performance

TSN vs. PEP - Performance Comparison

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

Returns By Period

In the year-to-date period, TSN achieves a -1.17% return, which is significantly lower than PEP's -0.06% return. Over the past 10 years, TSN has underperformed PEP with an annualized return of 1.94%, while PEP has yielded a comparatively higher 6.34% annualized return.

TSN

• 1D: -2.96%
• 1M: -15.95%
• YTD: -1.17%
• 6M: 3.05%
• 1Y: 6.62%
• 3Y*: 7.87%
• 5Y*: -2.96%
• 10Y*: 1.94%

PEP

• 1D: -0.87%
• 1M: -8.06%
• YTD: -0.06%
• 6M: -1.51%
• 1Y: 12.47%
• 3Y*: -5.03%
• 5Y*: 2.44%
• 10Y*: 6.34%

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

TSN vs. PEP - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
TSN Tyson Foods, Inc.	-1.17%	5.68%	10.47%	-10.44%	-26.90%	38.47%	-27.35%	73.91%	-32.82%	33.27%
PEP PepsiCo, Inc.	-0.06%	-1.85%	-7.60%	-3.29%	6.78%	20.56%	11.67%	27.38%	-4.81%	17.82%

Correlation

The correlation between TSN and PEP is 0.45, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.45
Correlation (3Y) Calculated over the trailing 3-year period	0.44
Correlation (5Y) Calculated over the trailing 5-year period	0.42
Correlation (10Y) Calculated over the trailing 10-year period	0.38
Correlation (All Time) Calculated using the full available price history since Jul 10, 1986	0.26

The correlation between TSN and PEP shifts across timeframes, from 0.26 (all time) to 0.45 (1 year), reflecting how their relationship changes across market environments.

Fundamentals

Market Cap TSN : $20.17B PEP : $192.87B
EPS TSN : $1.30 PEP : $6.37
PE Ratio TSN : 43.87 PEP : 22.07
PS Ratio TSN : 0.36 PEP : 2.02
PB Ratio TSN : 1.11 PEP : 9.02
Total Revenue (TTM) TSN : $55.71B PEP : $95.45B
Gross Profit (TTM) TSN : $3.65B PEP : $51.60B
EBITDA (TTM) TSN : $2.53B PEP : $15.08B

Return for Risk

TSN vs. PEP — Risk / Return Rank

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

TSN

TSN Risk / Return Rank: 50
TSN Sharpe Ratio Rank: 52
TSN Sortino Ratio Rank: 45
TSN Omega Ratio Rank: 44
TSN Calmar Ratio Rank: 52
TSN Martin Ratio Rank: 56

PEP

PEP Risk / Return Rank: 58
PEP Sharpe Ratio Rank: 62
PEP Sortino Ratio Rank: 56
PEP Omega Ratio Rank: 53
PEP Calmar Ratio Rank: 59
PEP Martin Ratio Rank: 62

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.

TSN vs. PEP - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Tyson Foods, Inc. (TSN) 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.

	TSN	PEP	Difference
Sharpe ratio: Return per unit of total volatility	0.27	0.58	-0.31
Sortino ratio: Return per unit of downside risk	0.58	1.05	-0.47
Omega ratio: Gain probability vs. loss probability	1.07	1.12	-0.05
Calmar ratio: Return relative to maximum drawdown	0.40	0.77	-0.37
Martin ratio: Return relative to average drawdown	1.29	2.04	-0.76
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

TSN vs. PEP - Sharpe Ratio Comparison

The current TSN Sharpe Ratio is 0.27, which is lower than the PEP Sharpe Ratio of 0.58. The chart below compares the historical Sharpe Ratios of TSN 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.

Sharpe Ratios by Period

	TSN	PEP	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.27	0.58	-0.31
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	-0.12	0.13	-0.25
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.07	0.32	-0.25
Sharpe Ratio (All Time) Calculated using the full available price history	0.19	0.38	-0.18

Drawdowns

TSN vs. PEP - Drawdown Comparison

The maximum TSN drawdown since its inception was -81.50%, which is greater than PEP's maximum drawdown of -73.92%. Use the drawdown chart below to compare losses from any high point for TSN and PEP.

Drawdown Indicators

	TSN	PEP	Difference
Max Drawdown Largest peak-to-trough decline	-81.50%	-73.92%	-7.58%
Max Drawdown (1Y) Largest decline over 1 year	-16.57%	-16.25%	-0.32%
Max Drawdown (3Y) Largest decline over 3 years	-20.34%	-29.17%	+8.83%
Max Drawdown (5Y) Largest decline over 5 years	-52.11%	-30.32%	-21.79%
Max Drawdown (10Y) Largest decline over 10 years	-52.45%	-30.32%	-22.13%
Current Drawdown Current decline from peak	-33.56%	-19.80%	-13.76%
Average Drawdown Average peak-to-trough decline	-23.76%	-13.65%	-10.11%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.16%	6.12%	-0.96%

Volatility

TSN vs. PEP - Volatility Comparison

Tyson Foods, Inc. (TSN) has a higher volatility of 9.39% compared to PepsiCo, Inc. (PEP) at 6.35%. This indicates that TSN'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

	TSN	PEP	Difference
Volatility (1M) Calculated over the trailing 1-month period	9.39%	6.35%	+3.04%
Volatility (6M) Calculated over the trailing 6-month period	19.15%	14.92%	+4.23%
Volatility (1Y) Calculated over the trailing 1-year period	24.57%	21.77%	+2.80%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	24.85%	18.38%	+6.47%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	28.00%	19.67%	+8.33%

Dividends

TSN vs. PEP - Dividend Comparison

TSN's dividend yield for the trailing twelve months is around 3.56%, less than PEP's 4.09% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
PEP PepsiCo, Inc.	4.09%	3.92%	3.51%	2.91%	2.50%	2.45%	2.71%	2.77%	3.25%	2.64%	2.83%	2.76%
TSN Tyson Foods, Inc.	3.56%	3.43%	3.43%	3.59%	2.99%	2.06%	2.65%	1.70%	2.39%	1.11%	1.09%	0.84%

Financials

TSN vs. PEP - Profitability Comparison

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

TSN - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Tyson Foods, Inc. reported a gross profit of 962.00M and revenue of 13.65B. Therefore, the gross margin over that period was 7.1%.

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%.

TSN - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Tyson Foods, Inc. reported an operating income of 435.00M and revenue of 13.65B, resulting in an operating margin of 3.2%.

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%.

TSN - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Tyson Foods, Inc. reported a net income of 260.00M and revenue of 13.65B, resulting in a net margin of 1.9%.

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

Can I hold both TSN and PEP in my portfolio?

TSN and PEP have a correlation of 0.45, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, TSN or PEP?

TSN has higher volatility (9.39%) compared to PEP (6.35%). In terms of maximum drawdown, TSN dropped -81.50% vs PEP's -73.92%.

Which has better risk-adjusted returns?

PEP currently has the higher Sharpe Ratio (0.58 vs 0.27), 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.