Kroger Company (KR)vsPepsiCo Inc (PEP)
KR
Kroger Company
$60.54
+1.14%
CONSUMER DEFENSIVE · Cap: $35.69B
PEP
PepsiCo Inc
$137.38
-0.35%
CONSUMER DEFENSIVE · Cap: $188.32B
Smart Verdict
WallStSmart Research — data-driven comparison
Kroger Company generates 56% more annual revenue ($148.65B vs $95.45B). PEP leads profitability with a 9.2% profit margin vs 0.7%. KR appears more attractively valued with a PEG of 0.56. PEP earns a higher WallStSmart Score of 65/100 (C+).
KR
Buy55
out of 100
Grade: C
PEP
Buy65
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+20.2%
Fair Value
$73.34
Current Price
$60.54
$12.80 discount
Margin of Safety
+0.7%
Fair Value
$138.33
Current Price
$137.38
$0.95 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Safe zone — low bankruptcy risk
Growing faster than its price suggests
Every $100 of equity generates 41 in profit
Large-cap with strong market position
Earnings expanding 27.8% YoY
Areas to Watch
Premium valuation, high expectations priced in
2.2% revenue growth
0.7% margin — thin
Operating margin of 3.2%
Expensive relative to growth rate
Trading at 8.8x book value
Weak financial health signals
Negative free cash flow — burning cash
Comparative Analysis Report
WallStSmart ResearchBull Case : KR
The strongest argument for KR centers on Altman Z-Score, PEG Ratio. PEG of 0.56 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 : KR
The primary concerns for KR are P/E Ratio, Revenue Growth, Profit Margin. Debt-to-equity of 3.63 is elevated, increasing financial risk. Thin 0.7% margins leave little buffer for downturns.
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
KR carries more volatility with a beta of 0.43 — expect wider price swings.
PEP is growing revenue faster at 8.5% — sustainability is the question.
KR generates stronger free cash flow (462M), providing more financial flexibility.
Monitor GROCERY STORES industry trends, competitive dynamics, and regulatory changes.
Bottom Line
PEP scores higher overall (65/100 vs 55/100). KR offers better value entry with a 20.2% 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.
Kroger Company
CONSUMER DEFENSIVE · GROCERY STORES · USA
The Kroger Company, or simply Kroger, is an American retail company founded by Bernard Kroger in 1883 in Cincinnati, Ohio.
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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