Graham Holdings Co (GHC)vsPepsiCo Inc (PEP)
GHC
Graham Holdings Co
$1,134.42
+1.06%
CONSUMER DEFENSIVE · Cap: $4.91B
PEP
PepsiCo Inc
$157.41
-1.79%
CONSUMER DEFENSIVE · Cap: $215.17B
Smart Verdict
WallStSmart Research — data-driven comparison
PepsiCo Inc generates 1816% more annual revenue ($95.45B vs $4.98B). PEP leads profitability with a 9.2% profit margin vs 6.0%. PEP appears more attractively valued with a PEG of 1.70. PEP earns a higher WallStSmart Score of 63/100 (C+).
GHC
Buy58
out of 100
Grade: C
PEP
Buy63
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+5.3%
Fair Value
$1171.08
Current Price
$1134.42
$36.66 discount
Margin of Safety
+0.2%
Fair Value
$154.83
Current Price
$157.41
$2.58 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Safe zone — low bankruptcy risk
Conservative balance sheet, low leverage
Attractively priced relative to earnings
Earnings expanding 21.4% YoY
Mega-cap, among the largest globally
Every $100 of equity generates 44 in profit
Earnings expanding 27.8% YoY
Areas to Watch
ROE of 6.7% — below average capital efficiency
6.0% margin — thin
Expensive relative to growth rate
Expensive relative to growth rate
Trading at 10.1x book value
Weak financial health signals
Negative free cash flow — burning cash
Comparative Analysis Report
WallStSmart ResearchBull Case : GHC
The strongest argument for GHC centers on Price/Book, Altman Z-Score, Debt/Equity.
Bull Case : PEP
The strongest argument for PEP centers on Market Cap, Return on Equity, EPS Growth.
Bear Case : GHC
The primary concerns for GHC are Return on Equity, Profit Margin, PEG Ratio.
Bear Case : PEP
The primary concerns for PEP are PEG Ratio, Price/Book, Piotroski F-Score.
Key Dynamics to Monitor
GHC carries more volatility with a beta of 0.79 — expect wider price swings.
PEP is growing revenue faster at 8.5% — sustainability is the question.
GHC generates stronger free cash flow (49M), providing more financial flexibility.
Monitor EDUCATION & TRAINING SERVICES industry trends, competitive dynamics, and regulatory changes.
Bottom Line
PEP scores higher overall (63/100 vs 58/100). 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.
Graham Holdings Co
CONSUMER DEFENSIVE · EDUCATION & TRAINING SERVICES · USA
Graham Holdings Company is a diversified global media and education company. The company is headquartered in Arlington, Virginia.
Visit Website →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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