WallStSmart

Lifeway Foods Inc (LWAY)vsPepsiCo Inc (PEP)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

PepsiCo Inc generates 42139% more annual revenue ($96.90B vs $229.42M). PEP leads profitability with a 10.8% profit margin vs 6.5%. PEP appears more attractively valued with a PEG of 1.46. PEP earns a higher WallStSmart Score of 71/100 (B).

LWAY

Buy

55

out of 100

Grade: C

Growth: 9.3Profit: 6.5Value: 3.7Quality: 8.0
Piotroski: 3/9Altman Z: 6.64

PEP

Strong Buy

71

out of 100

Grade: B

Growth: 6.7Profit: 8.0Value: 6.0Quality: 4.0
Piotroski: 3/9Altman Z: 2.26
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for LWAY.

PEPFair Value (-1.9%)

Margin of Safety

-1.9%

Fair Value

$140.22

Current Price

$142.86

$2.64 premium

UndervaluedFair: $140.22Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

LWAY4 strengths · Avg: 9.5/10
Revenue GrowthGrowth
36.7%10/10

Revenue surging 36.7% year-over-year

Debt/EquityHealth
0.0810/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
6.6410/10

Safe zone — low bankruptcy risk

EPS GrowthGrowth
30.4%8/10

Earnings expanding 30.4% YoY

PEP5 strengths · Avg: 9.0/10
Return on EquityProfitability
47.5%10/10

Every $100 of equity generates 47 in profit

EPS GrowthGrowth
137.0%10/10

Earnings expanding 137.0% YoY

Market CapQuality
$185.30B9/10

Large-cap with strong market position

P/E RatioValuation
17.7x8/10

Attractively priced relative to earnings

Free Cash FlowQuality
$1.50B8/10

Generating 1.5B in free cash flow

Areas to Watch

LWAY4 concerns · Avg: 3.3/10
P/E RatioValuation
31.8x4/10

Premium valuation, high expectations priced in

Market CapQuality
$465.79M3/10

Smaller company, higher risk/reward

Profit MarginProfitability
6.5%3/10

6.5% margin — thin

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEP3 concerns · Avg: 2.7/10
Price/BookValuation
9.1x4/10

Trading at 9.1x book value

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Debt/EquityHealth
2.411/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

Bull Case : LWAY

The strongest argument for LWAY centers on Revenue Growth, Debt/Equity, Altman Z-Score. Revenue growth of 36.7% demonstrates continued momentum.

Bull Case : PEP

The strongest argument for PEP centers on Return on Equity, EPS Growth, Market Cap. PEG of 1.46 suggests the stock is reasonably priced for its growth.

Bear Case : LWAY

The primary concerns for LWAY are P/E Ratio, Market Cap, Profit Margin.

Bear Case : PEP

The primary concerns for PEP are Price/Book, Piotroski F-Score, Debt/Equity. Debt-to-equity of 2.41 is elevated, increasing financial risk.

Key Dynamics to Monitor

LWAY profiles as a hypergrowth stock while PEP is a value play — different risk/reward profiles.

LWAY carries more volatility with a beta of 0.45 — expect wider price swings.

LWAY is growing revenue faster at 36.7% — sustainability is the question.

PEP generates stronger free cash flow (1.5B), providing more financial flexibility.

Bottom Line

PEP scores higher overall (71/100 vs 55/100). Both earn "Strong 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.

Lifeway Foods Inc

CONSUMER DEFENSIVE · PACKAGED FOODS · USA

Lifeway Foods, Inc. produces and markets probiotic-based products in the United States and internationally. The company is headquartered in Morton Grove, Illinois.

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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