BHP Group Limited (BHP)vsPepsiCo Inc (PEP)
BHP
BHP Group Limited
$68.77
+0.82%
BASIC MATERIALS · Cap: $166.46B
PEP
PepsiCo Inc
$151.73
+0.76%
CONSUMER DEFENSIVE · Cap: $205.91B
Smart Verdict
WallStSmart Research — data-driven comparison
PepsiCo Inc generates 74% more annual revenue ($93.92B vs $53.99B). BHP leads profitability with a 19.0% profit margin vs 8.8%. PEP appears more attractively valued with a PEG of 3.01. BHP earns a higher WallStSmart Score of 64/100 (C+).
BHP
Buy64
out of 100
Grade: C+
PEP
Buy59
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+57.8%
Fair Value
$188.60
Current Price
$68.77
$119.83 discount
Margin of Safety
+45.9%
Fair Value
$280.33
Current Price
$151.73
$128.60 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Strong operational efficiency at 40.7%
Large-cap with strong market position
Every $100 of equity generates 25 in profit
Attractively priced relative to earnings
Earnings expanding 27.5% YoY
Generating 4.3B in free cash flow
Mega-cap, among the largest globally
Every $100 of equity generates 43 in profit
Earnings expanding 67.5% YoY
Generating 4.7B in free cash flow
Areas to Watch
Expensive relative to growth rate
Moderate valuation
Trading at 10.2x book value
Weak financial health signals
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : BHP
The strongest argument for BHP centers on Operating Margin, Market Cap, Return on Equity. Profitability is solid with margins at 19.0% and operating margin at 40.7%. Revenue growth of 10.8% demonstrates continued momentum.
Bull Case : PEP
The strongest argument for PEP centers on Market Cap, Return on Equity, EPS Growth.
Bear Case : BHP
The primary concerns for BHP are PEG Ratio.
Bear Case : PEP
The primary concerns for PEP are P/E Ratio, Price/Book, Piotroski F-Score.
Key Dynamics to Monitor
BHP profiles as a mature stock while PEP is a value play — different risk/reward profiles.
BHP carries more volatility with a beta of 0.74 — expect wider price swings.
BHP is growing revenue faster at 10.8% — sustainability is the question.
PEP generates stronger free cash flow (4.7B), providing more financial flexibility.
Bottom Line
BHP scores higher overall (64/100 vs 59/100), backed by strong 19.0% margins and 10.8% revenue growth. PEP offers better value entry with a 45.9% margin of safety. 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.
BHP Group Limited
BASIC MATERIALS · OTHER INDUSTRIAL METALS & MINING · USA
BHP Group engages in the natural resources business in Australia, Europe, China, Japan, India, South Korea, the rest of Asia, North America, South America and internationally. The company is headquartered in Melbourne, Australia.
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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