WallStSmart

Danaher Corporation (DHR)vsPepsiCo Inc (PEP)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

PepsiCo Inc generates 282% more annual revenue ($93.92B vs $24.57B). DHR leads profitability with a 14.7% profit margin vs 8.8%. DHR appears more attractively valued with a PEG of 1.23. DHR earns a higher WallStSmart Score of 60/100 (C).

DHR

Buy

60

out of 100

Grade: C

Growth: 4.0Profit: 6.0Value: 7.3Quality: 6.3
Piotroski: 4/9Altman Z: 2.36

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

DHRSignificantly Overvalued (-38.6%)

Margin of Safety

-38.6%

Fair Value

$135.07

Current Price

$187.15

$52.08 premium

UndervaluedFair: $135.07Overvalued
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

DHR4 strengths · Avg: 8.3/10
Market CapQuality
$134.43B9/10

Large-cap with strong market position

Price/BookValuation
2.5x8/10

Reasonable price relative to book value

Operating MarginProfitability
22.2%8/10

Strong operational efficiency at 22.2%

Free Cash FlowQuality
$1.75B8/10

Generating 1.7B 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

DHR3 concerns · Avg: 3.7/10
P/E RatioValuation
37.7x4/10

Premium valuation, high expectations priced in

Revenue GrowthGrowth
4.6%4/10

4.6% revenue growth

Return on EquityProfitability
7.0%3/10

ROE of 7.0% — below average capital efficiency

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 : DHR

The strongest argument for DHR centers on Market Cap, Price/Book, Operating Margin. PEG of 1.23 suggests the stock is reasonably priced for its growth.

Bull Case : PEP

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

Bear Case : DHR

The primary concerns for DHR are P/E Ratio, Revenue Growth, Return on Equity.

Bear Case : PEP

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

Key Dynamics to Monitor

DHR carries more volatility with a beta of 0.96 — expect wider price swings.

PEP is growing revenue faster at 5.6% — sustainability is the question.

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

Monitor DIAGNOSTICS & RESEARCH industry trends, competitive dynamics, and regulatory changes.

Bottom Line

DHR scores higher overall (60/100 vs 59/100). 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.

Danaher Corporation

HEALTHCARE · DIAGNOSTICS & RESEARCH · USA

Danaher Corporation is an American globally diversified conglomerate with its headquarters in Washington, D.C.. The company designs, manufactures, and markets professional, medical, industrial, and commercial products and services. The company's 3 platforms are Life Sciences, Diagnostics, and Environmental & Applied Solutions.

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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