WallStSmart

Coca-Cola Femsa SAB de CV ADR (KOF)vsPepsiCo Inc (PEP)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Coca-Cola Femsa SAB de CV ADR generates 206% more annual revenue ($292.51B vs $95.45B). PEP leads profitability with a 9.2% profit margin vs 7.9%. PEP appears more attractively valued with a PEG of 1.58. PEP earns a higher WallStSmart Score of 62/100 (C+).

KOF

Buy

50

out of 100

Grade: C-

Growth: 4.0Profit: 6.5Value: 5.7Quality: 5.5
Piotroski: 3/9Altman Z: 2.49

PEP

Buy

62

out of 100

Grade: C+

Growth: 6.0Profit: 8.0Value: 4.7Quality: 4.0
Piotroski: 3/9Altman Z: 2.26
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

KOFUndervalued (+50.9%)

Margin of Safety

+50.9%

Fair Value

$229.42

Current Price

$106.47

$122.95 discount

UndervaluedFair: $229.42Overvalued
PEPOvervalued (-5.6%)

Margin of Safety

-5.6%

Fair Value

$138.40

Current Price

$141.92

$3.52 premium

UndervaluedFair: $138.40Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

KOF3 strengths · Avg: 8.7/10
Return on EquityProfitability
208.3%10/10

Every $100 of equity generates 208 in profit

Price/BookValuation
2.8x8/10

Reasonable price relative to book value

Free Cash FlowQuality
$7.63B8/10

Generating 7.6B in free cash flow

PEP3 strengths · Avg: 9.0/10
Return on EquityProfitability
40.9%10/10

Every $100 of equity generates 41 in profit

Market CapQuality
$199.92B9/10

Large-cap with strong market position

EPS GrowthGrowth
27.8%8/10

Earnings expanding 27.8% YoY

Areas to Watch

KOF4 concerns · Avg: 3.0/10
Revenue GrowthGrowth
1.1%4/10

1.1% revenue growth

Profit MarginProfitability
7.9%3/10

7.9% margin — thin

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
22.882/10

Expensive relative to growth rate

PEP4 concerns · Avg: 3.3/10
PEG RatioValuation
1.584/10

Expensive relative to growth rate

Price/BookValuation
9.1x4/10

Trading at 9.1x book value

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Free Cash FlowQuality
$-406.00M2/10

Negative free cash flow — burning cash

Comparative Analysis Report

WallStSmart Research

Bull Case : KOF

The strongest argument for KOF centers on Return on Equity, Price/Book, Free Cash Flow.

Bull Case : PEP

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

Bear Case : KOF

The primary concerns for KOF are Revenue Growth, Profit Margin, Piotroski F-Score.

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

KOF carries more volatility with a beta of 0.53 — expect wider price swings.

PEP is growing revenue faster at 8.5% — sustainability is the question.

KOF generates stronger free cash flow (7.6B), providing more financial flexibility.

Monitor BEVERAGES - NON-ALCOHOLIC industry trends, competitive dynamics, and regulatory changes.

Bottom Line

PEP scores higher overall (62/100 vs 50/100). KOF offers better value entry with a 50.9% 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.

Coca-Cola Femsa SAB de CV ADR

CONSUMER DEFENSIVE · BEVERAGES - NON-ALCOHOLIC · USA

Coca-Cola FEMSA, SAB de CV, a franchise bottler, produces, markets, sells and distributes Coca-Cola brand beverages. The company is headquartered in Mexico City, Mexico.

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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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