Eastside Distilling (NASDAQ: PEP) and PepsiCo (NASDAQ:PEP) are both consumer staples companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, risk, profitability, valuation, earnings and dividends.

Volatility & Risk

Eastside Distilling has a beta of 0.48, indicating that its share price is 52% less volatile than the S&P 500. Comparatively, PepsiCo has a beta of 0.71, indicating that its share price is 29% less volatile than the S&P 500.

Institutional and Insider Ownership

10.6% of Eastside Distilling shares are held by institutional investors. Comparatively, 70.9% of PepsiCo shares are held by institutional investors. 20.8% of Eastside Distilling shares are held by insiders. Comparatively, 0.3% of PepsiCo shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Eastside Distilling and PepsiCo’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Eastside Distilling $3.79 million 12.92 -$5.27 million ($1.42) -5.38
PepsiCo $63.53 billion 2.50 $4.86 billion $5.23 21.44

PepsiCo has higher revenue and earnings than Eastside Distilling. Eastside Distilling is trading at a lower price-to-earnings ratio than PepsiCo, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Eastside Distilling and PepsiCo, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Eastside Distilling 0 0 1 0 3.00
PepsiCo 1 10 6 0 2.29

Eastside Distilling presently has a consensus target price of $7.00, indicating a potential downside of 8.38%. PepsiCo has a consensus target price of $119.00, indicating a potential upside of 6.11%. Given PepsiCo’s higher possible upside, analysts plainly believe PepsiCo is more favorable than Eastside Distilling.

Profitability

This table compares Eastside Distilling and PepsiCo’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Eastside Distilling -130.79% -118.61% -62.03%
PepsiCo 7.14% 67.06% 9.65%

Dividends

PepsiCo pays an annual dividend of $3.71 per share and has a dividend yield of 3.3%. Eastside Distilling does not pay a dividend. PepsiCo pays out 70.9% of its earnings in the form of a dividend. PepsiCo has increased its dividend for 45 consecutive years.

Summary

PepsiCo beats Eastside Distilling on 12 of the 16 factors compared between the two stocks.

About Eastside Distilling

Eastside Distilling, Inc. develops, manufactures, produces, and markets hand-crafted spirits in the United States. The company offers bourbon under the Burnside West End Blend, Burnside Oregon Oaked Bourbon, and Burnside Goose Hollow RSV Bourbon brand names; premium whiskey under the Barrel Hitch American Whiskey brand names; distinctive whiskey under the Cherry Bomb Whiskey and Marionberry Whiskey brand names; rum under the Below Deck Silver Rum, Below Deck Spiced Rum, Below Deck Coffee Rum, and Below Deck Ginger Rum brand names; and vodka under the Portland Potato Vodka brand name. It also provides various handmade products, including Advocaat (eggnog) Liqueur, Peppermint Bark Liqueur, Bier Schnapps, and Holiday Spiced Liqueur. In addition, the company offers tastings, tasting room tours, private parties, and merchandise sales from its facilities in Oregon. Eastside Distilling, Inc. was founded in 2003 and is headquartered in Portland, Oregon.

About PepsiCo

PepsiCo, Inc. operates as a food and beverage company worldwide. Its Frito-Lay North America segment offers Lay's and Ruffles potato chips; Doritos, Tostitos, and Santitas tortilla chips; and Cheetos snacks, branded dips, and Fritos corn chips. The company's Quaker Foods North America segment provides cereals, rice, pasta, mixes and syrups, granola bars, grits, oat squares, oatmeal, rice cakes, simply granola, and side dishes under the brands Quaker, Aunt Jemima, Cap'n crunch, life, Quaker Chewy, and Rice-A-Roni. Its North America Beverages segment offers beverage concentrates, fountain syrups, and finished goods under the Aquafina, Diet Mountain Dew, Diet Pepsi, Gatorade, Mist Twst, Mountain Dew, Pepsi, Propel, and Tropicana brands; and ready-to-drink tea, coffee, and juices. The company's Latin America segment provides snack foods under the Cheetos, Doritos, Emperador, Lay's, Marias Gamesa, Rosquinhas Mabel, Ruffles, Sabritas, Saladitas, and Tostitos; cereals and snacks under the Quaker brand; and beverage concentrates, fountain syrups, and finished goods under the 7UP, Diet Pepsi, Gatorade, H2oh!, Manzanita Sol, Mirinda, Pepsi, and Toddy brands. Its Europe Sub-Saharan Africa segment offers snack food; cereals and snacks; beverage concentrates, fountain syrups, and finished goods; ready-to-drink tea products; and dairy products under the Agusha, Chudo, and Domik v Derevne brand names. The company's Asia, Middle East and North Africa segment provides snack foods under the Cheetos, Chipsy, Crunchy, Doritos, Kurkure, and Lay's brands; cereals and snacks under the Quaker brand; beverage concentrates, fountain syrups, and finished goods; and ready-to-drink tea products. The company was founded in 1898 and is headquartered in Purchase, New York.

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