Kraft Heinz Co (KHC)vsPepsiCo Inc (PEP)
KHC
Kraft Heinz Co
$22.54
+0.54%
CONSUMER DEFENSIVE · Cap: $26.62B
PEP
PepsiCo Inc
$154.59
+0.29%
CONSUMER DEFENSIVE · Cap: $215.17B
Smart Verdict
WallStSmart Research — data-driven comparison
PepsiCo Inc generates 283% more annual revenue ($95.45B vs $24.94B). PEP leads profitability with a 9.2% profit margin vs -23.4%. KHC appears more attractively valued with a PEG of 0.99. PEP earns a higher WallStSmart Score of 63/100 (C+).
KHC
Buy51
out of 100
Grade: C-
PEP
Buy63
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+37.6%
Fair Value
$40.03
Current Price
$22.54
$17.49 discount
Margin of Safety
+0.2%
Fair Value
$154.83
Current Price
$154.59
$0.24 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Growing faster than its price suggests
Generating 1.2B in free cash flow
Mega-cap, among the largest globally
Every $100 of equity generates 44 in profit
Earnings expanding 27.8% YoY
Areas to Watch
ROE of -12.8% — below average capital efficiency
Revenue declined 3.4%
Earnings declined 69.2%
Distress zone — elevated risk
Expensive relative to growth rate
Trading at 9.9x book value
Weak financial health signals
Negative free cash flow — burning cash
Comparative Analysis Report
WallStSmart ResearchBull Case : KHC
The strongest argument for KHC centers on Price/Book, PEG Ratio, Free Cash Flow. PEG of 0.99 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 : KHC
The primary concerns for KHC are Return on Equity, Revenue Growth, EPS Growth.
Bear Case : PEP
The primary concerns for PEP are PEG Ratio, Price/Book, Piotroski F-Score.
Key Dynamics to Monitor
KHC profiles as a turnaround stock while PEP is a value play — different risk/reward profiles.
PEP carries more volatility with a beta of 0.41 — expect wider price swings.
PEP is growing revenue faster at 8.5% — sustainability is the question.
KHC generates stronger free cash flow (1.2B), providing more financial flexibility.
Bottom Line
PEP scores higher overall (63/100 vs 51/100). KHC offers better value entry with a 37.6% 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.
Kraft Heinz Co
CONSUMER DEFENSIVE · PACKAGED FOODS · USA
The Kraft Heinz Company (KHC), commonly known as Kraft Heinz, is an American food company formed by the merger of Kraft Foods and Heinz, co-headquartered in Chicago, Illinois, and Pittsburgh, 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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