From Nasdaq, Inc.:

Investors are debating whether Campbell Soup or PepsiCo is a better stock pick for the next three years. While PEP stock has outperformed CPB in recent years, the former has better revenue growth while the latter is more profitable. Overall, Campbell is expected to offer better returns than PepsiCo over the next three years. The Trefis Machine Learning analysis predicts a 17% expected return for Campbell, compared to 12% for PepsiCo.

PEP stock has seen 15% gains compared to CPB’s minimal changes in the past three years, but both underperformed the S&P 500. Meanwhile, PepsiCo’s revenue growth has been at 8.8% annually for the last three years, while Campbell’s is only at 2.6%. Looking at profitability, PepsiCo’s operating margin is on a decline, while Campbell’s is slightly better at 13.7%.

Even though PepsiCo has demonstrated better revenue growth, Campbell is more profitable. The forecasted return from Trefis Machine Learning analysis indicates an expected return of 12% for PepsiCo, and 17% for Campbell over the next three years. This makes Campbell the more attractive investment between the two.



Read more: After A 25% Fall In 2023 Is Campbell A Better Pick Than PepsiCo Stock?