Oatly Vs. Pepsi: Which Beverage Stock Is A Better Buy?

PEP has a C grade for Value, which is consistent with its slightly higher-than-industry valuation ratios. PEP’s 21.40x forward EV/EBIT value is 21.7% higher than the 17.58x industry average. In comparison, OTLY’s F grade for Value reflects its extreme overvaluation. The company has a 16.90x forward Price/Sales ratio, which is 984% higher than the 1.56x industry average.

Of 37 stocks in the Beverages industry, OTLY is ranked #34, while PEP is ranked #5.

Beyond what we’ve stated above, our POWR Ratings system has also rated both PEP and OTLY for Growth, Momentum, Stability, and Sentiment.

Get all OTLY ratings here. Also, click here to see the additional POWR Ratings for PEP.

PEP shares fell $0.29 (-0.19%) in after-hours trading Friday. Year-to-date, PEP has gained 6.68%, versus a 16.13% rise in the benchmark S&P 500 index during the same period.

The Winner

New product innovations born from collaborating with other leading companies and expanded market reach achieved through various distribution networks and e-commerce sites, should enable both PEP and OTLY to grow. However, with a rising number of lawsuits being filed on the recently listed  OTLY stock, we think PEP is a better buy now given its higher profitability  and lower valuation.

Our research shows that the odds of success increase if one bets on stocks with an Overall POWR Rating of Buy or Strong Buy. Click here to access the top-rated stocks in the Beverages industry.

1 2 3 4
View single page >> |

Disclaimer: Information is provided 'as-is' and solely for informational purposes, not for trading purposes or advice, and is delayed. To see all exchange delays and terms of use, please ...

more
How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.