Which is better, KO or PEP?

On the Buffett-Fit framework, The Coca-Cola Company (KO) currently grades higher than PEP — 52/100 (C grade) vs 50/100 (C). That said, "better" depends on which framework you trust — KO wins on Warren Buffett, Philip Fisher, Peter Lynch, Joel Greenblatt, and Charlie Munger; PEP wins on Benjamin Graham and Terry Smith. The full pillar breakdown is on this page.

Should I buy KO or PEP?

This page is an educational comparison, not investment advice. Both KO and PEP are graded against the same Buffett 5-pillar framework (moat, earnings durability, management quality, financial health, valuation) plus six other documented investor frameworks. Read the side-by-side breakdown to see which one matches the criteria you care about most — and always do your own research before making any investment decision.

Is KO better than PEP for value investing?

The two are close on the headline Buffett-Fit score (52/100 vs 50/100), so "better for value investing" depends on which pillar you weight most. The five Buffett pillars + six other frameworks are broken down side-by-side on this page so you can pick the one that fits your style.

What's the difference between KO and PEP on Warren Buffett's framework?

Both stocks are evaluated on the same five pillars: economic moat (durable competitive advantage), earnings durability (consistent profitability), management quality (capital allocation), financial health (conservative balance sheet), and valuation (margin of safety). KO currently scores 52/100 (C grade); PEP scores 50/100 (C grade). The "Where each wins" section on this page breaks down which pillar each stock dominates.

Which has the stronger moat, KO or PEP?

Moat strength is one of the five pillars in the Buffett-Fit score on this page. KO and PEP are each scored on ROIC sustainability, gross-margin durability, and qualitative signals like brand strength, switching costs, network effects, and regulatory barriers. The pillar breakdown on this page shows the moat sub-score side-by-side so you can see which one has the more durable competitive advantage.

Which is more undervalued, KO or PEP?

Valuation is one of the five Buffett-Fit pillars on this page. Both stocks are scored on owner-earnings yield, price-to-intrinsic-value vs the underlying compounding rate, and the margin of safety relative to a conservative DCF. The valuation sub-score in the table below tells you which one currently trades at a more attractive price relative to its underlying business quality.

Are KO and PEP both Consumer Defensive stocks?

Yes — both The Coca-Cola Company (KO) and PepsiCo, Inc. (PEP) operate in the Consumer Defensive sector. That makes this a direct sector-peer comparison, which is the apples-to-apples way to use the Buffett-Fit framework: the score weighs each stock against its sector's specific quality and valuation benchmarks (sector-relative bonus), so the cross-stock comparison isn't distorted by inter-sector base-rate differences.

Is this KO vs PEP comparison investment advice?

No. This page is an educational pattern-match against documented public frameworks (Buffett, Graham, Fisher, Lynch, Greenblatt, Munger, Smith), not personalised investment advice. The scores reflect how closely each stock matches each framework's documented criteria — they are not buy/hold/sell recommendations. Always do your own research and consult a licensed financial adviser for personalised advice.

Stock comparison

Coca-Cola

PepsiCo

Scored across Buffett, Graham, Lynch and Greenblatt - plus a side-by-side metric table covering valuation, quality, growth and balance sheet.

Coca-Cola

Market cap

$347.73B

Sector

Consumer Staples

PEP

PepsiCo

Market cap

$203.84B

Sector

Consumer Staples

Overall winner

Coca-Cola KO

Wins on the combined sum of fit scores across all four strategies. Per-strategy breakdown below.

Fit scores by strategy

Strategy	KO	PEP	Winner
Warren Buffett	52C	50C	KO
Benjamin Graham	67B	68B	PEP
Philip Fisher	50C	38D	KO
Peter Lynch	60C	54C	KO
Joel Greenblatt	49D	34F	KO
Charlie Munger	58C	51C	KO
Terry Smith	42D	43D	PEP

Side-by-side metrics

Metric	KO	PEP
Market cap	$347.73B	$203.84B
P/E (TTM)	25.4x	23.3x
EV/EBIT	27.7x	18.2x
ROIC (TTM)	13.88%	13.23%
Gross margin	61.74%	54.06%
Net margin	27.8%	9.16%
Revenue CAGR 5y	5.53%	4.27%
EPS CAGR 5y	7.78%	2.28%
Debt / Equity	1.3x	2.5x
Dividend yield	2.55%	3.82%

Where each one wins

The metrics with the biggest gap between the two - sorted so the most decisive edges read first.

KO leads on

EPS CAGR 5y7.78%vs 2.28%+71%
Net margin27.8%vs 9.16%+67%
Debt / Equity1.3xvs 2.5x+47%
Market cap$347.73Bvs $203.84B+41%

PEP leads on

EV/EBIT18.2xvs 27.7x+34%
Dividend yield3.82%vs 2.55%+33%
P/E (TTM)23.3xvs 25.4x+8%

More like KO

KO vs PM KO vs MNST KO vs CL KO vs MO KO vs NESTLEIND.NS KO vs ITC.NS

More like PEP

PEP vs PM PEP vs MNST PEP vs CL PEP vs MO PEP vs NESTLEIND.NS PEP vs ITC.NS

Read the full Buffett-Brain analysis for KO Read the full Buffett-Brain analysis for PEP

Related on invest-like

Strongest Moat Highest ROIC Warren Buffett strategy Economic Moat

Key terms in this analysis

ROIC Free Cash Flow (FCF)Economic Moat P/E Ratio Margin of Safety Quality Score

Educational tool. Fit scores are deterministic projections from public financials onto each investor's published criteria - not personal recommendations or advice.

Stock comparison

Coca-Cola

PepsiCo

Scored across Buffett, Graham, Lynch and Greenblatt - plus a side-by-side metric table covering valuation, quality, growth and balance sheet.

Coca-Cola

Market cap

$347.73B

Sector

Consumer Staples

PEP

PepsiCo

Market cap

$203.84B

Sector

Consumer Staples

Overall winner

Coca-Cola KO

Wins on the combined sum of fit scores across all four strategies. Per-strategy breakdown below.

Fit scores by strategy

Strategy	KO	PEP	Winner
Warren Buffett	52C	50C	KO
Benjamin Graham	67B	68B	PEP
Philip Fisher	50C	38D	KO
Peter Lynch	60C	54C	KO
Joel Greenblatt	49D	34F	KO
Charlie Munger	58C	51C	KO
Terry Smith	42D	43D	PEP

Side-by-side metrics

Metric	KO	PEP
Market cap	$347.73B	$203.84B
P/E (TTM)	25.4x	23.3x
EV/EBIT	27.7x	18.2x
ROIC (TTM)	13.88%	13.23%
Gross margin	61.74%	54.06%
Net margin	27.8%	9.16%
Revenue CAGR 5y	5.53%	4.27%
EPS CAGR 5y	7.78%	2.28%
Debt / Equity	1.3x	2.5x
Dividend yield	2.55%	3.82%

Where each one wins

The metrics with the biggest gap between the two - sorted so the most decisive edges read first.

KO leads on

EPS CAGR 5y7.78%vs 2.28%+71%
Net margin27.8%vs 9.16%+67%
Debt / Equity1.3xvs 2.5x+47%
Market cap$347.73Bvs $203.84B+41%

PEP leads on

EV/EBIT18.2xvs 27.7x+34%
Dividend yield3.82%vs 2.55%+33%
P/E (TTM)23.3xvs 25.4x+8%

More like KO

KO vs PM KO vs MNST KO vs CL KO vs MO KO vs NESTLEIND.NS KO vs ITC.NS

More like PEP

PEP vs PM PEP vs MNST PEP vs CL PEP vs MO PEP vs NESTLEIND.NS PEP vs ITC.NS

Read the full Buffett-Brain analysis for KO Read the full Buffett-Brain analysis for PEP

Related on invest-like

Strongest Moat Highest ROIC Warren Buffett strategy Economic Moat

Key terms in this analysis

ROIC Free Cash Flow (FCF)Economic Moat P/E Ratio Margin of Safety Quality Score

Educational tool. Fit scores are deterministic projections from public financials onto each investor's published criteria - not personal recommendations or advice.