Coca-Cola Takes the Lead Over PepsiCo in Quarterly Results

PepsiCo (PEP Quick Quote PEP - Free Report) and Coca-Cola (KO Quick Quote KO - Free Report) are two consumer staples heavyweights with a long history of paying consistent dividends.

While both companies have their strengths, recent quarterly results show that Coca-Cola has the edge. In its latest quarter, Coca-Cola saw sales climb 7% year-over-year to $13.38 billion and comparable earnings per share jump 11% to $0.97.

The company's operating metrics were also strong, with global unit case volume rising 5% and price/mix increasing 4%. In contrast, PepsiCo's quarterly results were solid but not as impressive, with sales climbing 6.4% year-over-year to $24.18 billion and core earnings per share rising 4%.

The growth outlook for Coca-Cola is also stronger, with Zacks Consensus estimates suggesting 9.7% earnings growth in FY26 and another 7% in FY27. In contrast, PepsiCo's sales momentum has stalled modestly over the last three years, with a more mixed record of quarterly results.

Valuation-wise, Coca-Cola shares trade at a premium relative to PepsiCo, but its stronger underlying volume trends, margin expansion, and higher expected earnings growth make it a more attractive option. In fact, the company's Zacks Rank is #2 (Buy), while PepsiCo's is #3 (Hold).