Keurig Dr Pepper (KDP) and Dr Pepper Snapple Group (DPS) Head-To-Head Analysis

Keurig Dr Pepper (NYSE: DPS) and Dr Pepper Snapple Group (NYSE:DPS) are both consumer staples companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, profitability, dividends, earnings, valuation, institutional ownership and risk.

Risk and Volatility

Keurig Dr Pepper has a beta of 0.79, suggesting that its share price is 21% less volatile than the S&P 500. Comparatively, Dr Pepper Snapple Group has a beta of 0.76, suggesting that its share price is 24% less volatile than the S&P 500.

Dividends

Keurig Dr Pepper pays an annual dividend of $2.32 per share and has a dividend yield of 9.8%. Dr Pepper Snapple Group pays an annual dividend of $2.32 per share and has a dividend yield of 1.9%. Keurig Dr Pepper pays out 51.1% of its earnings in the form of a dividend. Dr Pepper Snapple Group pays out 51.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Dr Pepper Snapple Group has raised its dividend for 8 consecutive years.

Institutional and Insider Ownership

89.9% of Keurig Dr Pepper shares are owned by institutional investors. Comparatively, 92.7% of Dr Pepper Snapple Group shares are owned by institutional investors. 0.6% of Keurig Dr Pepper shares are owned by company insiders. Comparatively, 0.6% of Dr Pepper Snapple Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Keurig Dr Pepper and Dr Pepper Snapple Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Keurig Dr Pepper 16.10% 33.68% 8.14%
Dr Pepper Snapple Group 15.62% 35.49% 8.07%

Analyst Ratings

This is a summary of recent ratings and recommmendations for Keurig Dr Pepper and Dr Pepper Snapple Group, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Keurig Dr Pepper 0 3 2 0 2.40
Dr Pepper Snapple Group 0 10 5 0 2.33

Keurig Dr Pepper currently has a consensus price target of $27.00, indicating a potential upside of 14.26%. Dr Pepper Snapple Group has a consensus price target of $118.85, indicating a potential downside of 3.89%. Given Keurig Dr Pepper’s stronger consensus rating and higher possible upside, equities analysts plainly believe Keurig Dr Pepper is more favorable than Dr Pepper Snapple Group.

Valuation & Earnings

This table compares Keurig Dr Pepper and Dr Pepper Snapple Group’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Keurig Dr Pepper $6.69 billion 0.64 $1.08 billion $4.54 5.20
Dr Pepper Snapple Group $6.69 billion 3.33 $1.08 billion $4.54 27.24

Keurig Dr Pepper is trading at a lower price-to-earnings ratio than Dr Pepper Snapple Group, indicating that it is currently the more affordable of the two stocks.

Keurig Dr Pepper Company Profile

Keurig Dr Pepper Inc. engages in the brewing system and specialty coffee businesses in the United States and Canada. The company sources, produces, and sells coffee, hot cocoa, teas, and other beverages in K-Cup, Vue, Rivo, K-Carafe, and K-Mug pods brands; coffee in traditional packaging, including bags and fractional packs; and other specialty beverages in pods. It distributes its products through at-home and away-from-home channels to retailers, including supermarkets, department stores, mass merchandisers, club stores, and convenience stores; and restaurants, hospitality accounts, office coffee distributors, and partner brand owners, as well as to consumers through its Websites. The company was founded in 1981 and is based in Waterbury, Vermont. Keurig Dr Pepper Inc. is a subsidiary of Acorn Holdings B.V.

Dr Pepper Snapple Group Company Profile

Dr Pepper Snapple Group, Inc. manufactures and distributes non-alcoholic beverages in the United States, Mexico and the Caribbean, and Canada. The company operates through three segments: Beverage Concentrates, Packaged Beverages, and Latin America Beverages. It offers flavored carbonated soft drinks (CSDs) and non-carbonated beverages (NCBs), including ready-to-drink teas, juices, juice drinks, mineral and coconut water, and mixers, as well as manufactures and sells Mott's apple sauces. The company sells its flavored CSD products primarily under the Dr Pepper, Canada Dry, Peñafiel, Squirt, 7UP, Crush, A&W, Sunkist soda, Schweppes, RC Cola, Big Red, Vernors, Venom, IBC, Diet Rite, and Sun Drop; and NCB products primarily under the Snapple, Hawaiian Punch, Mott's, FIJI, Clamato, Bai, Yoo-Hoo, Deja Blue, ReaLemon, AriZona tea, Vita Coco, BODYARMOR, Mr & Mrs T mixers, Nantucket Nectars, Garden Cocktail, Mistic, and Rose's brand names. It serves bottlers and distributors, and retailers. Dr Pepper Snapple Group, Inc. was incorporated in 2007 and is headquartered in Plano, Texas.

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