Is KDP Stock A Better Pick Over PepsiCo?

Group 1 - Dr. Pepper has tied with Pepsi for the second most popular soft drink in the U.S., following Coca-Cola [2] - Both PepsiCo and Keurig Dr Pepper have underperformed the broader market in 2024, with the S&P 500 gaining 17%, while PEP's stock is flat and KDP's stock is down about 10% [2] - KDP is considered a better investment option compared to PEP due to its lower valuation and stronger growth in revenue and operating income [3][6] Group 2 - KDP currently trades at a lower Price-to-Operating Income multiple compared to PEP, indicating a more attractive valuation [6] - KDP shows greater revenue and operating income growth despite its lower valuation, suggesting a potential for better investment returns [6] - An analysis of the past year's metrics may indicate whether PepsiCo's stock is overvalued compared to its competitors, with continued underperformance strengthening this inference [7]