WallStSmart

Brown-Forman Corporation (BF-A)vsPepsiCo Inc (PEP)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

PepsiCo Inc generates 2341% more annual revenue ($95.45B vs $3.91B). BF-A leads profitability with a 20.6% profit margin vs 9.2%. PEP appears more attractively valued with a PEG of 1.52. PEP earns a higher WallStSmart Score of 62/100 (C+).

BF-A

Buy

58

out of 100

Grade: C

Growth: 3.3Profit: 8.5Value: 5.0Quality: 6.8
Piotroski: 4/9

PEP

Buy

62

out of 100

Grade: C+

Growth: 6.0Profit: 8.0Value: 4.7Quality: 4.0
Piotroski: 3/9Altman Z: 2.26
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for BF-A.

PEPFair Value (-2.5%)

Margin of Safety

-2.5%

Fair Value

$138.40

Current Price

$141.92

$3.52 premium

UndervaluedFair: $138.40Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

BF-A4 strengths · Avg: 8.8/10
Operating MarginProfitability
31.9%10/10

Strong operational efficiency at 31.9%

Profit MarginProfitability
20.6%9/10

Keeps 21 of every $100 in revenue as profit

P/E RatioValuation
14.8x8/10

Attractively priced relative to earnings

Price/BookValuation
2.9x8/10

Reasonable price relative to book value

PEP3 strengths · Avg: 9.0/10
Return on EquityProfitability
40.9%10/10

Every $100 of equity generates 41 in profit

Market CapQuality
$194.11B9/10

Large-cap with strong market position

EPS GrowthGrowth
27.8%8/10

Earnings expanding 27.8% YoY

Areas to Watch

BF-A3 concerns · Avg: 3.3/10
Revenue GrowthGrowth
2.0%4/10

2.0% revenue growth

EPS GrowthGrowth
1.3%4/10

1.3% earnings growth

PEG RatioValuation
4.192/10

Expensive relative to growth rate

PEP4 concerns · Avg: 3.3/10
PEG RatioValuation
1.524/10

Expensive relative to growth rate

Price/BookValuation
9.1x4/10

Trading at 9.1x book value

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Free Cash FlowQuality
$-406.00M2/10

Negative free cash flow — burning cash

Comparative Analysis Report

WallStSmart Research

Bull Case : BF-A

The strongest argument for BF-A centers on Operating Margin, Profit Margin, P/E Ratio. Profitability is solid with margins at 20.6% and operating margin at 31.9%.

Bull Case : PEP

The strongest argument for PEP centers on Return on Equity, Market Cap, EPS Growth.

Bear Case : BF-A

The primary concerns for BF-A are Revenue Growth, EPS Growth, PEG Ratio.

Bear Case : PEP

The primary concerns for PEP are PEG Ratio, Price/Book, Piotroski F-Score. Debt-to-equity of 2.47 is elevated, increasing financial risk.

Key Dynamics to Monitor

PEP carries more volatility with a beta of 0.39 — expect wider price swings.

PEP is growing revenue faster at 8.5% — sustainability is the question.

BF-A generates stronger free cash flow (265M), providing more financial flexibility.

Monitor BEVERAGES - WINERIES & DISTILLERIES industry trends, competitive dynamics, and regulatory changes.

Bottom Line

PEP scores higher overall (62/100 vs 58/100). Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Brown-Forman Corporation

CONSUMER DEFENSIVE · BEVERAGES - WINERIES & DISTILLERIES · USA

The Brown Forman Corporation is one of the largest American-owned companies in the spirits and wine business. Based in Louisville, Kentucky, it manufactures several well known brands throughout the world, including Jack Daniel's, Early Times, Old Forester, Woodford Reserve, GlenDronach, BenRiach, Glenglassaugh, Finlandia, Herradura, Korbel, and Chambord.

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PepsiCo Inc

CONSUMER DEFENSIVE · BEVERAGES - NON-ALCOHOLIC · USA

PepsiCo, Inc. is an American based multinational food, snack, and beverage corporation headquartered in Harrison, New York, in the hamlet of Purchase. PepsiCo's business encompasses all aspects of the food and beverage market. It oversees the manufacturing, distribution, and marketing of its products.

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