WallStSmart

Colgate-Palmolive Company (CL)vsPepsiCo Inc (PEP)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

PepsiCo Inc generates 366% more annual revenue ($96.90B vs $20.80B). PEP leads profitability with a 10.8% profit margin vs 10.0%. PEP appears more attractively valued with a PEG of 1.46. PEP earns a higher WallStSmart Score of 71/100 (B).

CL

Buy

58

out of 100

Grade: C

Growth: 4.0Profit: 8.5Value: 4.7Quality: 5.5
Piotroski: 4/9Altman Z: 4.21

PEP

Strong Buy

71

out of 100

Grade: B

Growth: 6.7Profit: 8.0Value: 6.0Quality: 4.0
Piotroski: 3/9Altman Z: 2.26
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CLUndervalued (+5.5%)

Margin of Safety

+5.5%

Fair Value

$98.11

Current Price

$92.73

$5.38 discount

UndervaluedFair: $98.11Overvalued
PEPFair Value (-1.9%)

Margin of Safety

-1.9%

Fair Value

$140.22

Current Price

$142.86

$2.64 premium

UndervaluedFair: $140.22Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CL4 strengths · Avg: 9.3/10
Return on EquityProfitability
36.4%10/10

Every $100 of equity generates 36 in profit

Altman Z-ScoreHealth
4.2110/10

Safe zone — low bankruptcy risk

Market CapQuality
$73.56B9/10

Large-cap with strong market position

Operating MarginProfitability
20.9%8/10

Strong operational efficiency at 20.9%

PEP5 strengths · Avg: 9.0/10
Return on EquityProfitability
47.5%10/10

Every $100 of equity generates 47 in profit

EPS GrowthGrowth
137.0%10/10

Earnings expanding 137.0% YoY

Market CapQuality
$185.30B9/10

Large-cap with strong market position

P/E RatioValuation
17.7x8/10

Attractively priced relative to earnings

Free Cash FlowQuality
$1.50B8/10

Generating 1.5B in free cash flow

Areas to Watch

CL4 concerns · Avg: 3.0/10
PEG RatioValuation
1.624/10

Expensive relative to growth rate

P/E RatioValuation
35.1x4/10

Premium valuation, high expectations priced in

Price/BookValuation
515.2x2/10

Trading at 515.2x book value

EPS GrowthGrowth
-5.9%2/10

Earnings declined 5.9%

PEP3 concerns · Avg: 2.7/10
Price/BookValuation
9.1x4/10

Trading at 9.1x book value

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Debt/EquityHealth
2.411/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

Bull Case : CL

The strongest argument for CL centers on Return on Equity, Altman Z-Score, Market Cap.

Bull Case : PEP

The strongest argument for PEP centers on Return on Equity, EPS Growth, Market Cap. PEG of 1.46 suggests the stock is reasonably priced for its growth.

Bear Case : CL

The primary concerns for CL are PEG Ratio, P/E Ratio, Price/Book. Debt-to-equity of 54.99 is elevated, increasing financial risk.

Bear Case : PEP

The primary concerns for PEP are Price/Book, Piotroski F-Score, Debt/Equity. Debt-to-equity of 2.41 is elevated, increasing financial risk.

Key Dynamics to Monitor

PEP carries more volatility with a beta of 0.37 — expect wider price swings.

CL is growing revenue faster at 8.4% — sustainability is the question.

PEP generates stronger free cash flow (1.5B), providing more financial flexibility.

Monitor HOUSEHOLD & PERSONAL PRODUCTS industry trends, competitive dynamics, and regulatory changes.

Bottom Line

PEP scores higher overall (71/100 vs 58/100). Both earn "Strong 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.

Colgate-Palmolive Company

CONSUMER DEFENSIVE · HOUSEHOLD & PERSONAL PRODUCTS · USA

Colgate-Palmolive Company is an American multinational consumer products company headquartered on Park Avenue in Midtown Manhattan, New York City. It specializes in the production, distribution and provision of household, health care, personal care and veterinary products.

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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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