McCormick & Company Incorporated (MKC)vsPepsiCo Inc (PEP)
MKC
McCormick & Company Incorporated
$54.67
+0.40%
CONSUMER DEFENSIVE · Cap: $14.70B
PEP
PepsiCo Inc
$140.79
+0.12%
CONSUMER DEFENSIVE · Cap: $190.01B
Smart Verdict
WallStSmart Research — data-driven comparison
PepsiCo Inc generates 1212% more annual revenue ($96.90B vs $7.39B). MKC leads profitability with a 21.9% profit margin vs 10.8%. PEP appears more attractively valued with a PEG of 1.51. PEP earns a higher WallStSmart Score of 69/100 (B-).
MKC
Strong Buy67
out of 100
Grade: B-
PEP
Strong Buy69
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+27.0%
Fair Value
$96.65
Current Price
$54.67
$41.98 discount
Margin of Safety
+1.2%
Fair Value
$140.11
Current Price
$140.79
$0.68 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Every $100 of equity generates 23 in profit
Keeps 22 of every $100 in revenue as profit
Reasonable price relative to book value
16.7% revenue growth
Every $100 of equity generates 47 in profit
Earnings expanding 137.0% YoY
Large-cap with strong market position
Generating 1.5B in free cash flow
Areas to Watch
Expensive relative to growth rate
Distress zone — elevated risk
Earnings declined 14.2%
Expensive relative to growth rate
Trading at 8.7x book value
Weak financial health signals
Elevated debt levels
Comparative Analysis Report
WallStSmart ResearchBull Case : MKC
The strongest argument for MKC centers on P/E Ratio, Return on Equity, Profit Margin. Profitability is solid with margins at 21.9% and operating margin at 17.4%. Revenue growth of 16.7% demonstrates continued momentum.
Bull Case : PEP
The strongest argument for PEP centers on Return on Equity, EPS Growth, Market Cap.
Bear Case : MKC
The primary concerns for MKC are PEG Ratio, Altman Z-Score, EPS Growth.
Bear Case : PEP
The primary concerns for PEP are PEG Ratio, Price/Book, Piotroski F-Score. Debt-to-equity of 2.41 is elevated, increasing financial risk.
Key Dynamics to Monitor
MKC profiles as a growth stock while PEP is a value play — different risk/reward profiles.
MKC carries more volatility with a beta of 0.63 — expect wider price swings.
MKC is growing revenue faster at 16.7% — sustainability is the question.
PEP generates stronger free cash flow (1.5B), providing more financial flexibility.
Bottom Line
PEP scores higher overall (69/100 vs 67/100). MKC offers better value entry with a 27.0% margin of safety. Both earn "Strong Buy" and "Strong 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.
McCormick & Company Incorporated
CONSUMER DEFENSIVE · PACKAGED FOODS · USA
McCormick & Company is an American multinational food company that manufactures, markets, and distributes spices, seasoning mixes, condiments, and other flavoring products to retail outlets, food manufacturers, and foodservice businesses.
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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