The Coca-Cola Company (KO)vsPepsiCo Inc (PEP)
KO
The Coca-Cola Company
$75.97
-0.55%
CONSUMER DEFENSIVE · Cap: $334.75B
PEP
PepsiCo Inc
$153.54
-0.52%
CONSUMER DEFENSIVE · Cap: $215.66B
Smart Verdict
WallStSmart Research — data-driven comparison
PepsiCo Inc generates 96% more annual revenue ($93.92B vs $47.94B). KO leads profitability with a 27.3% profit margin vs 8.8%. KO appears more attractively valued with a PEG of 2.41. PEP earns a higher WallStSmart Score of 59/100 (C).
KO
Buy57
out of 100
Grade: C
PEP
Buy59
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-97.9%
Fair Value
$38.18
Current Price
$75.97
$37.79 premium
Margin of Safety
+45.5%
Fair Value
$280.33
Current Price
$153.54
$126.79 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 43 in profit
Keeps 27 of every $100 in revenue as profit
Strong operational efficiency at 24.7%
Generating 2.9B in free cash flow
Mega-cap, among the largest globally
Every $100 of equity generates 43 in profit
Earnings expanding 67.5% YoY
Generating 4.7B in free cash flow
Areas to Watch
Expensive relative to growth rate
Moderate valuation
Trading at 10.2x book value
2.4% revenue growth
Moderate valuation
Trading at 10.3x book value
Weak financial health signals
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : KO
The strongest argument for KO centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 27.3% and operating margin at 24.7%.
Bull Case : PEP
The strongest argument for PEP centers on Market Cap, Return on Equity, EPS Growth.
Bear Case : KO
The primary concerns for KO are PEG Ratio, P/E Ratio, Price/Book.
Bear Case : PEP
The primary concerns for PEP are P/E Ratio, Price/Book, Piotroski F-Score.
Key Dynamics to Monitor
PEP carries more volatility with a beta of 0.38 — expect wider price swings.
PEP is growing revenue faster at 5.6% — sustainability is the question.
PEP generates stronger free cash flow (4.7B), providing more financial flexibility.
Monitor BEVERAGES - NON-ALCOHOLIC industry trends, competitive dynamics, and regulatory changes.
Bottom Line
PEP scores higher overall (59/100 vs 57/100). 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.
The Coca-Cola Company
CONSUMER DEFENSIVE · BEVERAGES - NON-ALCOHOLIC · USA
The Coca-Cola Company is an American multinational beverage corporation incorporated under Delaware's General Corporation Law and headquartered in Atlanta, Georgia. The Coca-Cola Company has interests in the manufacturing, retailing, and marketing of nonalcoholic beverage concentrates and syrups.
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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