WallStSmart

CME Group Inc (CME)vsPepsiCo Inc (PEP)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

PepsiCo Inc generates 1343% more annual revenue ($93.92B vs $6.51B). CME leads profitability with a 62.6% profit margin vs 8.8%. PEP appears more attractively valued with a PEG of 3.01. CME earns a higher WallStSmart Score of 63/100 (C+).

CME

Buy

63

out of 100

Grade: C+

Growth: 7.3Profit: 7.5Value: 7.3Quality: 5.5
Piotroski: 1/9

PEP

Buy

59

out of 100

Grade: C

Growth: 6.7Profit: 7.5Value: 7.3Quality: 4.8
Piotroski: 3/9Altman Z: 2.26
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CMEUndervalued (+43.8%)

Margin of Safety

+43.8%

Fair Value

$522.76

Current Price

$293.93

$228.83 discount

UndervaluedFair: $522.76Overvalued
PEPUndervalued (+45.9%)

Margin of Safety

+45.9%

Fair Value

$280.33

Current Price

$151.73

$128.60 discount

UndervaluedFair: $280.33Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CME6 strengths · Avg: 9.0/10
Profit MarginProfitability
62.6%10/10

Keeps 63 of every $100 in revenue as profit

Operating MarginProfitability
63.8%10/10

Strong operational efficiency at 63.8%

Market CapQuality
$105.67B9/10

Large-cap with strong market position

Debt/EquityHealth
0.129/10

Conservative balance sheet, low leverage

EPS GrowthGrowth
35.0%8/10

Earnings expanding 35.0% YoY

Free Cash FlowQuality
$1.10B8/10

Generating 1.1B in free cash flow

PEP4 strengths · Avg: 9.5/10
Market CapQuality
$205.91B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
42.8%10/10

Every $100 of equity generates 43 in profit

EPS GrowthGrowth
67.5%10/10

Earnings expanding 67.5% YoY

Free Cash FlowQuality
$4.70B8/10

Generating 4.7B in free cash flow

Areas to Watch

CME3 concerns · Avg: 3.0/10
P/E RatioValuation
26.3x4/10

Moderate valuation

Piotroski F-ScoreQuality
1/93/10

Weak financial health signals

PEG RatioValuation
5.842/10

Expensive relative to growth rate

PEP4 concerns · Avg: 3.3/10
P/E RatioValuation
25.1x4/10

Moderate valuation

Price/BookValuation
10.2x4/10

Trading at 10.2x book value

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
3.012/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : CME

The strongest argument for CME centers on Profit Margin, Operating Margin, Market Cap. Profitability is solid with margins at 62.6% and operating margin at 63.8%.

Bull Case : PEP

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

Bear Case : CME

The primary concerns for CME are P/E Ratio, Piotroski F-Score, PEG Ratio.

Bear Case : PEP

The primary concerns for PEP are P/E Ratio, Price/Book, Piotroski F-Score.

Key Dynamics to Monitor

CME profiles as a mature stock while PEP is a value play — different risk/reward profiles.

PEP carries more volatility with a beta of 0.38 — expect wider price swings.

CME is growing revenue faster at 8.0% — sustainability is the question.

PEP generates stronger free cash flow (4.7B), providing more financial flexibility.

Bottom Line

CME scores higher overall (63/100 vs 59/100), backed by strong 62.6% margins. 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.

CME Group Inc

FINANCIAL SERVICES · FINANCIAL DATA & STOCK EXCHANGES · USA

CME Group Inc. (Chicago Mercantile Exchange, Chicago Board of Trade, New York Mercantile Exchange, The Commodity Exchange) is an American global markets company. It is the world's largest financial derivatives exchange, and trades in asset classes that include agricultural products, currencies, energy, interest rates, metals, stock indexes and cryptocurrencies futures.

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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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