Based on the aggregated intelligence of 120,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, beverage giant PepsiCo (NYSE:PEP) has earned a coveted five-star ranking. Our data has shown that five-star stocks outperform the market by a significant margin; conversely, one-star stocks have woefully lagged the market average.

With that in mind, let's take a closer look at PepsiCo's business and see what CAPS investors are saying about the stock right now.

PepsiCo facts

Headquarters (founded)

Purchase, New York (1898)

Market Cap

$81.6 billion


Soft Drinks

TTM Revenue

$42.9 billion


CEO Indra Nooyi (since 2006)

CFO Richard Goodman (since 2006)

Major Brands

Pepsi, Gatorade, Lay's, Doritos

Return on Equity (average last three years)


Dividend Yield



Coca-Cola (NYSE:KO),

Kraft Foods (NYSE:KFT)

CAPS members bullish on PEP also bullish on

Procter & Gamble (NYSE:PG),

Johnson & Johnson (NYSE:JNJ)

CAPS members bearish on PEP also bearish on

Citigroup (NYSE:C),

Bank of America (NYSE:BAC)

Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS. TTM = trailing 12 months.

Over on CAPS, fully 2,970 of the 3,069 members who have rated PepsiCo -- some 97% -- believe the stock will outperform the S&P 500 going forward. These bulls include KokueiOTD and CAPS All-Star dmbeach.

Earlier this month, KokueiOTD noted that PepsiCo "has a lot of good things to say for it, including good management, a strong brand, great global market presence, a huge, diverse lineup of products, and an attractive balance sheet."

In a pitch from late October, dmbeach agrees, highlighting the stock's tasty valuation (which has remained relatively unchanged) as a good reason to drink up:

How can you not love Pepsi at this price? Should be relatively recession-proof and pays a decent yield in the meantime. As a cash flow machine, they do not depend on credit. It's is an impeccably managed firm; really I don't think anybody can compete with them operationally in terms of production and distribution. Finally, they've shown a good instinct for acquiring solid brands in growing market segments (juices, healthier snacks,etc) that will not only be immediately accretive but will provide for faster growth in the future.

What do you think about PepsiCo, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 120,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Coca-Cola is a Motley Fool Inside Value pick. Johnson & Johnson and Bank of America are selections of Income Investor. The Fool's disclosure policy always gets a perfect score.