WallStSmart

The Chefs Warehouse Inc (CHEF)vsPepsiCo Inc (PEP)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

PepsiCo Inc generates 2142% more annual revenue ($95.45B vs $4.26B). PEP leads profitability with a 9.2% profit margin vs 1.9%. CHEF appears more attractively valued with a PEG of 1.08. PEP earns a higher WallStSmart Score of 62/100 (C+).

CHEF

Buy

60

out of 100

Grade: C

Growth: 8.0Profit: 5.0Value: 6.0Quality: 7.5
Piotroski: 5/9Altman Z: 2.97

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

CHEFUndervalued (+18.4%)

Margin of Safety

+18.4%

Fair Value

$78.60

Current Price

$80.74

$2.14 discount

UndervaluedFair: $78.60Overvalued
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

CHEF1 strengths · Avg: 10.0/10
EPS GrowthGrowth
61.4%10/10

Earnings expanding 61.4% YoY

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

CHEF3 concerns · Avg: 2.7/10
Profit MarginProfitability
1.9%3/10

1.9% margin — thin

Operating MarginProfitability
3.1%3/10

Operating margin of 3.1%

P/E RatioValuation
49.6x2/10

Premium valuation, high expectations priced in

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 : CHEF

The strongest argument for CHEF centers on EPS Growth. Revenue growth of 11.4% demonstrates continued momentum. PEG of 1.08 suggests the stock is reasonably priced for its growth.

Bull Case : PEP

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

Bear Case : CHEF

The primary concerns for CHEF are Profit Margin, Operating Margin, P/E Ratio. A P/E of 49.6x leaves little room for execution misses. Thin 1.9% margins leave little buffer for downturns.

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

CHEF carries more volatility with a beta of 1.44 — expect wider price swings.

CHEF is growing revenue faster at 11.4% — sustainability is the question.

CHEF generates stronger free cash flow (31M), providing more financial flexibility.

Monitor FOOD DISTRIBUTION industry trends, competitive dynamics, and regulatory changes.

Bottom Line

PEP scores higher overall (62/100 vs 60/100). CHEF offers better value entry with a 18.4% 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.

The Chefs Warehouse Inc

CONSUMER DEFENSIVE · FOOD DISTRIBUTION · USA

The Chefs' Warehouse, Inc., distributes specialty food products in the United States and Canada. The company is headquartered in Ridgefield, Connecticut.

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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