PepsiCo Edges Out Coca-Cola as Better Buy, Cramer Declares

PepsiCo's stock has been outperforming Coca-Cola's over the past five years, and investor Jim Cramer believes it is a better buy now. According to Cramer, PepsiCo's dividend yield of 4% makes it an attractive option compared to Coca-Cola's 2.32%. The company's recent quarterly payout increase to $1.48 per share marks its 54th consecutive annual increase.

PepsiCo's revenue rose 6.4% year over year in Q2 2026, with core earnings per share (EPS) of $2.20. However, the company signaled that results could land at the low end of its EPS range due to softer U.S. impulse channels. In contrast, Coca-Cola delivered adjusted EPS of $0.97 and revenue of $13.380B in Q2 2026.

Cramer's thesis is based on PepsiCo's lower valuation compared to Coca-Cola, with a price-to-earnings (P/E) ratio of 23 against Coke at 29. The discount plus the 4% yield offers protection for investors, according to Cramer. However, it's worth noting that the yield is elevated because the shares have stalled.