PepsiCo (NASDAQ:PEP) versus Innovation Beverage Group (NASDAQ:IBG) Critical Survey

PepsiCo (NASDAQ:PEP) and Innovation Beverage Group (NASDAQ:IBG) are both consumer staples companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, risk, analyst recommendations, earnings, valuation, profitability and institutional ownership.

Analyst Ratings

This is a breakdown of current ratings and price targets for PepsiCo and Innovation Beverage Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PepsiCo	1	13	5	0	2.21
Innovation Beverage Group	0	0	1	0	3.00

PepsiCo currently has a consensus target price of $168.12, indicating a potential upside of 17.70%. Given PepsiCo’s higher probable upside, research analysts plainly believe PepsiCo is more favorable than Innovation Beverage Group.

Profitability

This table compares PepsiCo and Innovation Beverage Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PepsiCo	10.43%	58.87%	11.28%
Innovation Beverage Group	N/A	N/A	N/A

Insider & Institutional Ownership

73.1% of PepsiCo shares are owned by institutional investors. 0.2% of PepsiCo shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares PepsiCo and Innovation Beverage Group”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PepsiCo	$91.85 billion	2.13	$9.58 billion	$6.95	20.55
Innovation Beverage Group	$3.15 million	1.78	N/A	N/A	N/A

PepsiCo has higher revenue and earnings than Innovation Beverage Group.

Summary

PepsiCo beats Innovation Beverage Group on 9 of the 10 factors compared between the two stocks.

About PepsiCo

PepsiCo, Inc. engages in the manufacture, marketing, distribution, and sale of various beverages and convenient foods worldwide. The company operates through seven segments: Frito-Lay North America; Quaker Foods North America; PepsiCo Beverages North America; Latin America; Europe; Africa, Middle East and South Asia; and Asia Pacific, Australia and New Zealand and China Region. It provides dips, cheese-flavored snacks, and spreads, as well as corn, potato, and tortilla chips; cereals, rice, pasta, mixes and syrups, granola bars, grits, oatmeal, rice cakes, and side dishes; beverage concentrates, fountain syrups, and finished goods; ready-to-drink tea, coffee, and juices; dairy products; and sparkling water makers and related products, as well as distributes alcoholic beverages under Hard MTN Dew brand. The company offers its products primarily under the Lay’s, Doritos, Fritos, Tostitos, BaiCaoWei, Cheetos, Cap’n Crunch, Life, Pearl Milling Company, Gatorade, Pepsi-Cola, Mountain Dew, Quaker, Rice-A-Roni, Aquafina, Bubly, Emperador, Diet Mountain Dew, Diet Pepsi, Gatorade Zero, Crush, Propel, Dr Pepper, Schweppes, Marias Gamesa, Ruffles, Sabritas, Saladitas, Tostitos, 7UP, Diet 7UP, H2oh!, Manzanita Sol, Mirinda, Pepsi Black, Pepsi Max, San Carlos, Toddy, Walkers, Chipsy, Kurkure, Sasko, Spekko, White Star, Smith’s, Sting, SodaStream, Lubimyj Sad, Agusha, Chudo, Domik v Derevne, Lipton, and other brands. It serves wholesale and other distributors, foodservice customers, grocery stores, drug stores, convenience stores, discount/dollar stores, mass merchandisers, membership stores, hard discounters, e-commerce retailers and authorized independent bottlers, and others through a network of direct-store-delivery, customer warehouse, and distributor networks, as well as directly to consumers through e-commerce platforms and retailers. The company was founded in 1898 and is based in Purchase, New York.

About Innovation Beverage Group

Innovation Beverage Group (formerly Australian Boutique Spirits) is an award-winning distillery that produces a variety of brands in-house and imports global brands to sell exclusively to the Australian market through bevmart.com.au. It was recently recognized as the Australian Liqueur Distillery of the year by the Melbourne International Spirits Competition.