Analyzing Tsingtao Brewery (OTCMKTS:TSGTF) and PepsiCo (NASDAQ:PEP)

Tsingtao Brewery (OTCMKTS:TSGTF – Get Free Report) and PepsiCo (NASDAQ:PEP – Get Free Report) are both consumer staples companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, earnings, risk, profitability, institutional ownership, dividends and valuation.

Insider and Institutional Ownership

9.1% of Tsingtao Brewery shares are held by institutional investors. Comparatively, 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 large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

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Dividends

Tsingtao Brewery pays an annual dividend of $0.45 per share and has a dividend yield of 8.6%. PepsiCo pays an annual dividend of $5.92 per share and has a dividend yield of 4.2%. Tsingtao Brewery pays out 30.6% of its earnings in the form of a dividend. PepsiCo pays out 77.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. PepsiCo has raised its dividend for 54 consecutive years. Tsingtao Brewery is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares Tsingtao Brewery and PepsiCo’s net margins, return on equity and return on assets.

Earnings & Valuation

This table compares Tsingtao Brewery and PepsiCo”s gross revenue, earnings per share and valuation.

PepsiCo has higher revenue and earnings than Tsingtao Brewery. Tsingtao Brewery 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 summary of current recommendations and price targets for Tsingtao Brewery and PepsiCo, as provided by MarketBeat.

PepsiCo has a consensus target price of $157.90, indicating a potential upside of 12.07%. Given PepsiCo’s stronger consensus rating and higher possible upside, analysts plainly believe PepsiCo is more favorable than Tsingtao Brewery.

Summary

PepsiCo beats Tsingtao Brewery on 12 of the 14 factors compared between the two stocks.

About Tsingtao Brewery

(Get Free Report)

Tsingtao Brewery Company Limited, together with its subsidiaries, engages in the production, distribution, wholesale, and retail sale of beer products worldwide. It operates through seven segments: Shandong Region; South China Region; North China Region; East China Region; Southeast China Region; Hong Kong, Macau and Other Overseas Region; and Finance Company. The company sells its beer products primarily under the Tsingtao and Laoshan brand names. It also provides wealth management, and agency collection and payment services; and financing, construction, and logistics services, as well as technology promotion and application services. Tsingtao Brewery Company Limited was founded in 1903 and is headquartered in Qingdao, the People's Republic of China.

About PepsiCo

(Get Free Report)

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.

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