WallStSmart

Hershey Co (HSY)vsPepsiCo Inc (PEP)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

PepsiCo Inc generates 697% more annual revenue ($96.90B vs $12.16B). HSY leads profitability with a 12.2% profit margin vs 10.8%. HSY appears more attractively valued with a PEG of 1.01. HSY earns a higher WallStSmart Score of 70/100 (B).

HSY

Strong Buy

70

out of 100

Grade: B

Growth: 6.7Profit: 7.5Value: 4.7Quality: 5.0
Piotroski: 3/9Altman Z: 2.11

PEP

Strong Buy

69

out of 100

Grade: B-

Growth: 6.7Profit: 8.0Value: 5.3Quality: 4.0
Piotroski: 3/9Altman Z: 2.26
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

HSYSignificantly Overvalued (-19.6%)

Margin of Safety

-19.6%

Fair Value

$193.06

Current Price

$182.35

$10.71 premium

UndervaluedFair: $193.06Overvalued
PEPUndervalued (+1.0%)

Margin of Safety

+1.0%

Fair Value

$140.22

Current Price

$139.02

$1.20 discount

UndervaluedFair: $140.22Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

HSY3 strengths · Avg: 9.0/10
EPS GrowthGrowth
631.0%10/10

Earnings expanding 631.0% YoY

Return on EquityProfitability
23.1%9/10

Every $100 of equity generates 23 in profit

Operating MarginProfitability
23.1%8/10

Strong operational efficiency at 23.1%

PEP4 strengths · Avg: 9.3/10
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
$190.01B9/10

Large-cap with strong market position

Free Cash FlowQuality
$1.50B8/10

Generating 1.5B in free cash flow

Areas to Watch

HSY2 concerns · Avg: 3.0/10
Debt/EquityHealth
1.133/10

Elevated debt levels

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEP4 concerns · Avg: 3.0/10
PEG RatioValuation
1.514/10

Expensive relative to growth rate

Price/BookValuation
8.6x4/10

Trading at 8.6x 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 : HSY

The strongest argument for HSY centers on EPS Growth, Return on Equity, Operating Margin. PEG of 1.01 suggests the stock is reasonably priced for its growth.

Bull Case : PEP

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

Bear Case : HSY

The primary concerns for HSY are Debt/Equity, Piotroski F-Score.

Bear Case : PEP

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

Key Dynamics to Monitor

PEP carries more volatility with a beta of 0.36 — expect wider price swings.

HSY is growing revenue faster at 6.6% — sustainability is the question.

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

Monitor CONFECTIONERS industry trends, competitive dynamics, and regulatory changes.

Bottom Line

HSY scores higher overall (70/100 vs 69/100). Both earn "Strong Buy" and "Strong 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.

Hershey Co

CONSUMER DEFENSIVE · CONFECTIONERS · USA

The Hershey Company, commonly known as Hershey's, is an American multinational company and one of the largest chocolate manufacturers in the world. It also manufactures baked products, such as cookies and cakes, and sells beverages like milkshakes, and many more that are produced globally. Its headquarters are in Hershey, Pennsylvania.

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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