Better Buy: PepsiCo vs. Anheuser-Busch InBev

Better Buy: PepsiCo vs. Anheuser-Busch InBev

PepsiCo splits its business into six main segments: PepsiCo Beverages North America (33% of its revenue in the first nine months of 2019), Frito Lay North America (26% of its revenue), Quaker Foods North America (4%), and three international units (37%), which sell a mix of its drinks and packaged foods.. AB InBev splits its business into five regions: South America (23% of its volume in the first nine months of 2019), Middle Americas (23%), North America (20%), Asia-Pacific (19%), EMEA (15%).. Despite the challenges, PepsiCo still expects its organic sales to grow by at least 4% for the full year.. its volume rose across its other regions, led by nearly 4% growth in the Middle Americas and EMEA regions.. AB InBev didn't provide a full-year outlook for its organic sales, but analysts expect its revenue to dip 2% this year and rise nearly 3% next year.. Wall Street expects PepsiCo's reported earnings to dip 3% this year and rise 8% next year -- which are tepid growth rates for a stock that trades at 24 times forward earnings.. Investors looking for a defensive stock with a decent dividend should stick with PepsiCo instead of AB InBev..