Emerson Electric Co. (EMR) vs PepsiCo, Inc. (PEP)

A side-by-side comparison of Emerson Electric Co. and PepsiCo, Inc. across valuation, profitability, dividends, and growth — built entirely from reported fundamentals, as of September 13, 2026. Differences are shown without an overall score or investment verdict.

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Different business models: EMR is classified in Industrials; PEP is classified in Consumer Defensive. Margin, capital intensity, and valuation differences should be interpreted in that sector context.

Total returnEMR vs PEP

growth of $100 · dividends reinvested · last 10y
EMR +267.7% (+13.9%/yr)PEP +75.2% (+5.8%/yr)EMR compounded faster over this window
100200300400Start $10020182020202220242026$368$175
EMR PEP

EMR vs PEP: by the numbers

  • PEP is the larger company ($186.24B vs $83.06B market cap).
  • PEP trades at the lower trailing earnings multiple (17.87 vs 32.45 P/E), one valuation lens rather than an overall verdict.
  • EMR converts more revenue to profit (13.83% vs 10.82% net margin).
  • PEP grew revenue faster over the past five years (5.37% vs 0.87% CAGR).
  • PEP pays the higher dividend yield (4.26% vs 1.46%).

Metrics side by side

Valuation

MetricEMRPEP
P/E ratio32.4517.87
Forward P/E22.6115.94
P/S ratio4.461.92
P/B ratio4.088.43
EV / EBITDA18.7212.16
FCF yield4.17%4.98%

Profitability

MetricEMRPEP
Gross margin53.16%53.96%
Operating margin20.11%14.96%
Net margin13.83%10.82%
ROE12.65%47.45%
ROIC7.93%13.22%

Dividends

MetricEMRPEP
Dividend yield1.46%4.26%
Payout ratio48.58%76.08%

Growth (annualized)

MetricEMRPEP
Revenue CAGR (5Y)0.87%5.37%
EPS CAGR (5Y)4.54%3.25%
FCF CAGR (5Y)0.41%5.40%
Total return CAGR (5Y)10.92%0.61%

Frequently asked

Which has the lower trailing P/E, EMR or PEP?
PEP has the lower trailing P/E: EMR trades at 32.45 and PEP at 17.87. P/E is one valuation measure and does not by itself establish which business is cheaper.
Which has grown faster, EMR or PEP?
Over the past five years, PEP grew revenue faster — EMR at a 0.87% CAGR versus PEP at 5.37%.
Does EMR or PEP pay a bigger dividend?
EMR yields 1.46% and PEP yields 4.26% based on trailing dividends and the latest price.
Is EMR or PEP more profitable?
EMR runs the higher net margin — EMR at 13.83% versus PEP at 10.82%.
How have EMR and PEP total returns compared?
Over the past 10 years, EMR delivered 14.33% and PEP delivered 5.97% annualized total return. Past performance doesn't predict future results.

Figures are sourced from reported fundamentals and the latest end-of-day price. This comparison is informational only and is not investment advice. Past performance does not predict future results. See our methodology. Compiled by TGMCharts Research · data verified September 13, 2026.