Keurig Dr Pepper Inc (KDP)vsPepsiCo Inc (PEP)
KDP
Keurig Dr Pepper Inc
$30.53
+1.56%
CONSUMER DEFENSIVE · Cap: $43.14B
PEP
PepsiCo Inc
$141.92
+0.30%
CONSUMER DEFENSIVE · Cap: $199.92B
Smart Verdict
WallStSmart Research — data-driven comparison
PepsiCo Inc generates 463% more annual revenue ($95.45B vs $16.94B). KDP leads profitability with a 10.8% profit margin vs 9.2%. KDP appears more attractively valued with a PEG of 1.06. PEP earns a higher WallStSmart Score of 62/100 (C+).
KDP
Buy59
out of 100
Grade: C
PEP
Buy62
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+57.1%
Fair Value
$69.64
Current Price
$30.53
$39.11 discount
Margin of Safety
-5.6%
Fair Value
$138.40
Current Price
$141.92
$3.52 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Every $100 of equity generates 41 in profit
Large-cap with strong market position
Earnings expanding 27.8% YoY
Areas to Watch
ROE of 7.3% — below average capital efficiency
Elevated debt levels
Earnings declined 47.7%
Distress zone — elevated risk
Expensive relative to growth rate
Trading at 9.1x book value
Weak financial health signals
Negative free cash flow — burning cash
Comparative Analysis Report
WallStSmart ResearchBull Case : KDP
The strongest argument for KDP centers on Price/Book. PEG of 1.06 suggests the stock is reasonably priced for its growth.
Bull Case : PEP
The strongest argument for PEP centers on Return on Equity, Market Cap, EPS Growth.
Bear Case : KDP
The primary concerns for KDP are Return on Equity, Debt/Equity, EPS Growth.
Bear Case : PEP
The primary concerns for PEP are PEG Ratio, Price/Book, Piotroski F-Score. Debt-to-equity of 2.47 is elevated, increasing financial risk.
Key Dynamics to Monitor
KDP carries more volatility with a beta of 0.42 — expect wider price swings.
KDP is growing revenue faster at 9.4% — sustainability is the question.
KDP generates stronger free cash flow (165M), providing more financial flexibility.
Monitor BEVERAGES - NON-ALCOHOLIC industry trends, competitive dynamics, and regulatory changes.
Bottom Line
PEP scores higher overall (62/100 vs 59/100). KDP offers better value entry with a 57.1% 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.
Keurig Dr Pepper Inc
CONSUMER DEFENSIVE · BEVERAGES - NON-ALCOHOLIC · USA
Keurig Dr Pepper Inc. is a beverage company in the United States and internationally. The company is headquartered in Burlington, Massachusetts.
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.
Compare with Other BEVERAGES - NON-ALCOHOLIC Stocks
Want to dig deeper into these stocks?