Lowe's Companies Inc (LOW)vsPepsiCo Inc (PEP)
LOW
Lowe's Companies Inc
$236.18
+0.75%
CONSUMER CYCLICAL · Cap: $131.50B
PEP
PepsiCo Inc
$151.73
+0.76%
CONSUMER DEFENSIVE · Cap: $205.91B
Smart Verdict
WallStSmart Research — data-driven comparison
PepsiCo Inc generates 9% more annual revenue ($93.92B vs $86.29B). PEP leads profitability with a 8.8% profit margin vs 7.7%. LOW appears more attractively valued with a PEG of 2.40. PEP earns a higher WallStSmart Score of 59/100 (C).
LOW
Hold44
out of 100
Grade: D
PEP
Buy59
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-193.3%
Fair Value
$80.51
Current Price
$236.18
$155.67 premium
Margin of Safety
+45.9%
Fair Value
$280.33
Current Price
$151.73
$128.60 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Conservative balance sheet, low leverage
Large-cap with strong market position
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
ROE of 0.0% — below average capital efficiency
7.7% margin — thin
Earnings declined 10.8%
Moderate valuation
Trading at 10.2x book value
Weak financial health signals
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : LOW
The strongest argument for LOW centers on Debt/Equity, Market Cap. Revenue growth of 10.9% demonstrates continued momentum.
Bull Case : PEP
The strongest argument for PEP centers on Market Cap, Return on Equity, EPS Growth.
Bear Case : LOW
The primary concerns for LOW are PEG Ratio, Return on Equity, Profit Margin.
Bear Case : PEP
The primary concerns for PEP are P/E Ratio, Price/Book, Piotroski F-Score.
Key Dynamics to Monitor
LOW carries more volatility with a beta of 0.94 — expect wider price swings.
LOW is growing revenue faster at 10.9% — sustainability is the question.
PEP generates stronger free cash flow (4.7B), providing more financial flexibility.
Monitor HOME IMPROVEMENT RETAIL industry trends, competitive dynamics, and regulatory changes.
Bottom Line
PEP scores higher overall (59/100 vs 44/100). Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Lowe's Companies Inc
CONSUMER CYCLICAL · HOME IMPROVEMENT RETAIL · USA
Lowe's Companies, Inc. is an American retail company specializing in home improvement. Headquartered in Mooresville, North Carolina, the company operates a chain of retail stores in the United States and Canada.
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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