Quick verdict: CCEP vs PEP in 2026

In this CCEP vs PEP stock comparison for 2026, Coca-Cola Europacific Partners PLC (CCEP) generally holds the edge across several key fundamental and valuation metrics. While both companies exhibit identical year-over-year revenue growth at 2.3%, CCEP emerges as the leader in value with significantly lower P/E and P/B ratios, and also showcases stronger profitability with superior net and EBITDA margins, alongside a healthier free cash flow yield. Furthermore, CCEP is the clear analyst favorite, boasting a higher percentage of “Buy” ratings and a more substantial projected price target upside. This is not investment advice.

CCEP vs PEP: key metrics side by side

Full side-by-side comparison of CCEP and PEP across valuation, profitability, growth and analyst sentiment. Data updated 2026-05-07.

CCEP vs PEP valuation comparison

When assessing the CCEP vs PEP valuation, Coca-Cola Europacific Partners (CCEP) appears to offer a more attractive entry point based on traditional valuation multiples. CCEP trades at a P/E ratio of 18.46x, significantly lower than PepsiCo’s (PEP) P/E of 24.25x. This suggests that investors are paying less for each dollar of CCEP’s earnings compared to PEP. Similarly, CCEP’s price-to-book (P/B) ratio of 4.57x is considerably lower than PEP’s 9.92x, indicating a more favorable valuation when measured against the companies’ book values. These metrics collectively suggest that CCEP is currently priced more conservatively in the market.

Looking at discounted cash flow (DCF) analysis, both stocks indicate substantial potential upside, with CCEP showing a DCF upside of +49.5% to a fair value of $140.52, while PEP’s DCF upside is marginally higher at +49.7% to $232.23. Despite the similar DCF upside, the lower P/E and P/B ratios make CCEP appear cheaper on a relative basis, especially for investors prioritizing value. The lower valuation multiples for CCEP, combined with a strong DCF indication, present a compelling case for its valuation profile compared to its larger peer, PepsiCo. For those wondering should I buy CCEP or PEP stock in 2026 based on value, CCEP clearly has the edge.

CCEP vs PEP growth comparison

In terms of top-line expansion, the CCEP vs PEP growth comparison reveals an interesting parity. Both Coca-Cola Europacific Partners and PepsiCo reported an identical year-over-year revenue growth rate of +2.3%. This suggests that both consumer defensive giants are expanding their revenue at a similar pace, indicating stable yet modest growth in their respective markets as of 2026. While their historical growth rates are in lockstep, the future outlook for growth, particularly as perceived by analysts, shows some divergence.

Analysts project a higher price target upside for CCEP, with a consensus target of $110.6 representing a +17.7% increase from its current price. In contrast, PEP’s analyst consensus target of $174 suggests a +12.2% upside. This difference in expected upside, despite similar revenue growth, could imply that analysts foresee greater potential for CCEP to outperform its current market valuation or capture additional market share. Furthermore, CCEP holds a slightly better FMP rating of B+ compared to PEP’s B, which often incorporates growth prospects and financial health into its assessment. Therefore, while current revenue growth is even, CCEP might possess stronger momentum in terms of perceived future appreciation.

CCEP vs PEP profitability

Examining CCEP vs PEP fundamentals and valuation, particularly profitability, reveals CCEP as the stronger performer in several key areas. Coca-Cola Europacific Partners (CCEP) reported a net profit margin of 9.29%, which is slightly superior to PepsiCo’s (PEP) net margin of 9.16%. While the difference appears minor, it indicates CCEP’s slightly more efficient management of its costs relative to its revenue to generate profit. The EBITDA margin further solidifies CCEP’s lead, standing at 16.39% compared to PEP’s 15.8%. This metric highlights CCEP’s better operational efficiency before accounting for interest, taxes, depreciation, and amortization.

When it comes to generating cash, CCEP also demonstrates a more robust performance. Its Free Cash Flow (FCF) yield is an impressive 6.02%, significantly higher than PEP’s FCF yield of 4.17%. A higher FCF yield indicates that CCEP generates more cash relative to its market capitalization, which is a positive sign for investors as it can be used for dividends, share buybacks, or debt reduction. Both companies currently report ‘N/A%’ for Return on Equity (ROE), preventing a direct comparison on this specific metric. Overall, CCEP clearly generates more cash and maintains stronger operational margins, making it the more profitable choice between the two based on available data.

Analyst ratings: CCEP vs PEP

The analyst sentiment for CCEP vs PEP stock comparison 2026 leans distinctly in favor of Coca-Cola Europacific Partners. CCEP has garnered attention from 28 analysts, with a notable 53.6% issuing a “Buy” rating for the stock. This strong conviction is reflected in their consensus target price of $110.6, which implies a considerable upside potential of +17.7% from its current price of $93.9643. The overall analyst consensus for CCEP is a “Buy,” suggesting a positive outlook from the professional investment community.

In contrast, PepsiCo (PEP) has a broader coverage with 45 analysts, but their sentiment is more tempered. Only 35.5% of these analysts recommend a “Buy,” with a larger portion likely falling into “Hold” categories, culminating in an overall “Hold” consensus for PEP. Their consensus target price stands at $174, projecting an upside of +12.2% from its current price of $155.14. While still positive, the lower percentage of “Buy” ratings and the less aggressive price target upside suggest that analysts view CCEP as having greater near-term appreciation potential and a more favorable risk-reward profile compared to PEP.

Should I buy CCEP or PEP stock in 2026?

Deciding whether you should buy CCEP or PEP stock in 2026 depends on your investment priorities, considering their respective strengths in this CCEP vs PEP fundamentals and valuation analysis. For growth-oriented investors, CCEP appears to offer more compelling prospects. While both companies show an identical +2.3% year-over-year revenue growth, analysts project a significantly higher price target upside for CCEP at +17.7% compared to PEP’s +12.2%. This suggests that the market and analysts perceive greater potential for CCEP’s stock price appreciation in the near to medium term. Additionally, CCEP’s superior profitability metrics, like net margin and FCF yield, could fuel future organic growth initiatives.

Value investors looking for an undervalued opportunity might find CCEP more attractive. CCEP trades at a lower P/E ratio of 18.46x and a P/B ratio of 4.57x, making it appear cheaper than PEP, which trades at 24.25x P/E and 9.92x P/B. Furthermore, CCEP boasts a stronger Free Cash Flow yield of 6.02% versus PEP’s 4.17%, indicating better cash generation relative to its market cap. Its lower debt-to-equity ratio of 1.38x compared to PEP’s 2.47x also points to a healthier balance sheet, appealing to those who prioritize financial stability and conservative valuation.

For income-focused investors, PepsiCo (PEP) holds a slight edge in terms of dividend yield. PEP offers a dividend yield of 0.04%, marginally higher than CCEP’s 0.02%. While both yields are relatively modest, PEP has historically been a strong dividend payer and often preferred by income investors for its consistency, even if the current yield is low. However, CCEP’s higher FCF yield could position it for stronger dividend growth potential in the future. Ultimately, CCEP presents a more attractive package for growth and value, while PEP might be marginally preferred for current income. This is not investment advice; always conduct your own thorough research before making investment decisions.

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FAQ: CCEP vs PEP