Keurig Dr Pepper Inc (KDP)vsPepsiCo Inc (PEP)
KDP
Keurig Dr Pepper Inc
$30.91
-0.67%
CONSUMER DEFENSIVE · Cap: $42.34B
PEP
PepsiCo Inc
$139.56
+0.05%
CONSUMER DEFENSIVE · Cap: $185.30B
Smart Verdict
WallStSmart Research — data-driven comparison
PepsiCo Inc generates 472% more annual revenue ($96.90B vs $16.94B). PEP leads profitability with a 10.8% profit margin vs 10.8%. KDP appears more attractively valued with a PEG of 1.04. PEP earns a higher WallStSmart Score of 71/100 (B).
KDP
Buy59
out of 100
Grade: C
PEP
Strong Buy71
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+56.7%
Fair Value
$68.96
Current Price
$30.91
$38.05 discount
Margin of Safety
-1.9%
Fair Value
$140.22
Current Price
$139.56
$0.66 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Every $100 of equity generates 47 in profit
Earnings expanding 137.0% YoY
Large-cap with strong market position
Attractively priced relative to earnings
Generating 1.5B in free cash flow
Areas to Watch
ROE of 7.3% — below average capital efficiency
Elevated debt levels
Earnings declined 47.7%
Distress zone — elevated risk
Trading at 8.9x book value
Weak financial health signals
Elevated debt levels
Comparative Analysis Report
WallStSmart ResearchBull Case : KDP
The strongest argument for KDP centers on Price/Book. PEG of 1.04 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. PEG of 1.46 suggests the stock is reasonably priced for its 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 Price/Book, Piotroski F-Score, Debt/Equity. Debt-to-equity of 2.41 is elevated, increasing financial risk.
Key Dynamics to Monitor
KDP carries more volatility with a beta of 0.41 — expect wider price swings.
KDP is growing revenue faster at 9.4% — sustainability is the question.
PEP generates stronger free cash flow (1.5B), providing more financial flexibility.
Monitor BEVERAGES - NON-ALCOHOLIC industry trends, competitive dynamics, and regulatory changes.
Bottom Line
PEP scores higher overall (71/100 vs 59/100). KDP offers better value entry with a 56.7% margin of safety. Both earn "Strong 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.
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