Coca-Cola vs PepsiCo: Revenue, Profitability & Business Model Compared
Side-by-side comparison of Coca-Cola (KO) and PepsiCo (PEP). Compare revenue breakdowns, profitability, financial metrics, and beverage business models.
Coca-Cola vs PepsiCo Overview
The iconic beverage rivals with different strategies: Coca-Cola focuses purely on beverages worldwide, while PepsiCo diversifies with a major snacks business through Frito-Lay.
| Metric | Coca-Cola (KO) | PepsiCo (PEP) |
|---|---|---|
| Sector | Consumer Staples | Consumer Staples |
| Market Cap | $295B | $220B |
| Revenue | $47.1B | $91.5B |
| Net Income | $10.6B | $9.0B |
How Does Coca-Cola Make Money?
Coca-Cola (KO) operates in the Consumer Staples sector with a market cap of $295B. For a full breakdown of Coca-Cola’s revenue sources, see the Coca-Cola revenue breakdown.
Coca-Cola Revenue Breakdown
| Segment | FY2024 | FY2023 | YoY Growth |
|---|---|---|---|
| Sparkling Soft Drinks | $23.5B | $22.8B | +3.1% |
| Water, Sports, Coffee & Tea | $10.5B | $10.1B | +4.0% |
| Juice, Dairy, Plant-Based | $4.8B | $4.6B | +4.3% |
| Nutrition & Other | $8.3B | $8.0B | +3.8% |
| Total Revenue | $47.1B | $45.8B | +2.8% |
How Does PepsiCo Make Money?
PepsiCo (PEP) operates in the Consumer Staples sector with a market cap of $220B. For a full breakdown of PepsiCo’s revenue sources, see the PepsiCo revenue breakdown.
PepsiCo Revenue Breakdown
| Segment | FY2024 | FY2023 | YoY Growth |
|---|---|---|---|
| Frito-Lay North America | $24.5B | $23.6B | +3.8% |
| Quaker Foods North America | $2.6B | $2.7B | -3.7% |
| PepsiCo Beverages North America | $27.1B | $26.3B | +3.0% |
| Latin America | $9.8B | $9.4B | +4.3% |
| Europe | $13.5B | $13.1B | +3.1% |
| Africa, Middle East & South Asia | $7.1B | $6.8B | +4.4% |
| Asia Pacific, Australia/NZ & China | $6.9B | $7.0B | -1.4% |
| Total Revenue | $91.5B | $86.4B | +5.9% |
Coca-Cola vs PepsiCo Profitability
Coca-Cola: Yes, Coca-Cola is highly profitable. The company reported net income of $10.6B on total revenue of $47.1B. With an operating margin of 28.5%, Coca-Cola demonstrates exceptional profitability from its asset-light franchise model.
PepsiCo: Yes, PepsiCo is profitable. The company reported net income of $9.0B on total revenue of $91.5B. With an operating margin of 14.5%, PepsiCo’s margins reflect its more capital-intensive snacks business.
Key Financial Metrics Comparison
Coca-Cola Key Metrics
- Gross Margin: 60.5% — Exceptional margin reflecting brand power and concentrate model.
- Operating Margin: 28.5% — Among the highest in consumer staples.
- Dividend Yield: 3.0% — 62 consecutive years of dividend increases.
- Global Brand Value: #6 — One of the world’s most recognized brands.
PepsiCo Key Metrics
- Gross Margin: 55.2% — Strong but lower due to snacks manufacturing.
- Operating Margin: 14.5% — Frito-Lay carries higher margins than beverages.
- Frito-Lay Operating Margin: 28% — Snacks is PepsiCo’s most profitable segment.
- Dividend Yield: 3.2% — 52 consecutive years of dividend increases.
Which Company is a Better Investment?
Coca-Cola offers pure beverage exposure with best-in-class margins and yield. PepsiCo provides diversification through snacks, which has historically been higher-growth and more profitable than beverages. Both are dividend aristocrats suitable for income investors. Review the full Coca-Cola revenue breakdown and PepsiCo revenue breakdown for detailed analysis.
Disclaimer: This comparison is for informational purposes only and does not constitute investment advice.