Contrasting PepsiCo (NASDAQ:PEP) & Waterloo Brewing (OTCMKTS:BIBLF)

PepsiCo (NASDAQ:PEP) and Waterloo Brewing (OTCMKTS:BIBLF) are both consumer staples companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, institutional ownership, risk, dividends, analyst recommendations, earnings and valuation.

Analyst Recommendations

This is a breakdown of current ratings and target prices for PepsiCo and Waterloo Brewing, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PepsiCo	1	12	7	0	2.30
Waterloo Brewing	0	0	0	0	0.00

PepsiCo currently has a consensus target price of $157.90, indicating a potential upside of 10.74%. Given PepsiCo’s stronger consensus rating and higher possible upside, equities analysts plainly believe PepsiCo is more favorable than Waterloo Brewing.

Insider and Institutional Ownership

73.1% of PepsiCo shares are held by institutional investors. 0.1% of PepsiCo shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares PepsiCo and Waterloo Brewing’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PepsiCo	10.78%	54.63%	10.49%
Waterloo Brewing	N/A	N/A	N/A

Earnings and Valuation

This table compares PepsiCo and Waterloo Brewing”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PepsiCo	$93.92 billion	2.07	$8.24 billion	$7.63	18.69
Waterloo Brewing	N/A	N/A	N/A	N/A	N/A

PepsiCo has higher revenue and earnings than Waterloo Brewing.

Summary

PepsiCo beats Waterloo Brewing on 9 of the 9 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 Waterloo Brewing

Waterloo Brewing Ltd. engages in the production, sale, marketing and distribution of bottled, canned and draft premium beer under the Waterloo brand name and value beer under the Laker and Red Cap brand names. It also offers ready-to-drink alcoholic beverages under the Seagram trademark. The company was founded by James R. A. Brickman on February 20, 1984 and is headquartered in Kitchener, Canada.