Comparing PepsiCo (NASDAQ:PEP) & Drinks Americas (OTCMKTS:DKAM)

PepsiCo (NASDAQ:PEPGet Rating) and Drinks Americas (OTCMKTS:DKAMGet Rating) are both consumer staples companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, valuation, risk, institutional ownership, earnings, analyst recommendations and dividends.

Profitability

This table compares PepsiCo and Drinks Americas’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
PepsiCo 11.28% 52.01% 9.67%
Drinks Americas N/A N/A N/A

Volatility & Risk

PepsiCo has a beta of 0.55, meaning that its share price is 45% less volatile than the S&P 500. Comparatively, Drinks Americas has a beta of 1.27, meaning that its share price is 27% more volatile than the S&P 500.

Institutional & Insider Ownership

71.4% of PepsiCo shares are owned by institutional investors. 0.1% of PepsiCo shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings and Valuation

This table compares PepsiCo and Drinks Americas’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
PepsiCo $79.47 billion 2.93 $7.62 billion $6.64 25.39
Drinks Americas N/A N/A N/A N/A N/A

PepsiCo has higher revenue and earnings than Drinks Americas.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for PepsiCo and Drinks Americas, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PepsiCo 0 5 5 0 2.50
Drinks Americas 0 0 0 0 N/A

PepsiCo presently has a consensus target price of $182.00, suggesting a potential upside of 7.95%.

Summary

PepsiCo beats Drinks Americas on 7 of the 8 factors compared between the two stocks.

About PepsiCo

(Get Rating)

PepsiCo, Inc. manufactures, markets, distributes, and sells various beverages and convenient foods worldwide. The company operates through seven segments: Frito-Lay North America; Quaker Foods North America; PepsiCo Beverages North America; Latin America; Europe; Africa, Middle East and South Asia; and Asia Pacific, Australia and New Zealand and China Region. It provides dips, cheese-flavored snacks, and spreads, as well as corn, potato, and tortilla chips; cereals, rice, pasta, mixes and syrups, granola bars, grits, oatmeal, rice cakes, simply granola, and side dishes; beverage concentrates, fountain syrups, and finished goods; ready-to-drink tea, coffee, and juices; dairy products; and sparkling water makers and related products. It serves wholesale and other distributors, foodservice customers, grocery stores, drug stores, convenience stores, discount/dollar stores, mass merchandisers, membership stores, hard discounters, e-commerce retailers and authorized independent bottlers, and others through a network of direct-store-delivery, customer warehouse, and distributor networks, as well as directly to consumers through e-commerce platforms and retailers. The company was founded in 1898 and is headquartered in Purchase, New York.

About Drinks Americas

(Get Rating)

Drinks Americas Holdings, Ltd. produces, imports, distributes, and markets premium wine and spirits, and alcoholic beverages to beverage wholesalers in the United States and internationally. The company offers premium authentic Mexican beer products under the brand names of Day of the Dead Beer, Mexicali, Rio Bravo, Red Pig, and Chili Beer. The company also markets and distributes non-alcoholic beverages. It offers its products through various retailers and restaurant chains. Drinks Americas Holdings, Ltd. was founded in 1986 and is based in Los Angeles, California.

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