WallStSmart

Monster Beverage Corp (MNST)vsPepsiCo Inc (PEP)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

PepsiCo Inc generates 1032% more annual revenue ($93.92B vs $8.29B). MNST leads profitability with a 23.0% profit margin vs 8.8%. MNST appears more attractively valued with a PEG of 1.87. MNST earns a higher WallStSmart Score of 68/100 (B-).

MNST

Strong Buy

68

out of 100

Grade: B-

Growth: 8.0Profit: 9.5Value: 8.7Quality: 7.8
Piotroski: 5/9Altman Z: 5.91

PEP

Buy

59

out of 100

Grade: C

Growth: 6.7Profit: 7.5Value: 7.3Quality: 4.8
Piotroski: 3/9Altman Z: 2.26
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

MNSTUndervalued (+11.9%)

Margin of Safety

+11.9%

Fair Value

$91.73

Current Price

$74.09

$17.64 discount

UndervaluedFair: $91.73Overvalued
PEPUndervalued (+45.5%)

Margin of Safety

+45.5%

Fair Value

$280.33

Current Price

$153.54

$126.79 discount

UndervaluedFair: $280.33Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

MNST6 strengths · Avg: 9.2/10
EPS GrowthGrowth
66.6%10/10

Earnings expanding 66.6% YoY

Altman Z-ScoreHealth
5.9110/10

Safe zone — low bankruptcy risk

Market CapQuality
$75.90B9/10

Large-cap with strong market position

Return on EquityProfitability
26.8%9/10

Every $100 of equity generates 27 in profit

Profit MarginProfitability
23.0%9/10

Keeps 23 of every $100 in revenue as profit

Operating MarginProfitability
29.5%8/10

Strong operational efficiency at 29.5%

PEP4 strengths · Avg: 9.5/10
Market CapQuality
$215.66B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
42.8%10/10

Every $100 of equity generates 43 in profit

EPS GrowthGrowth
67.5%10/10

Earnings expanding 67.5% YoY

Free Cash FlowQuality
$4.70B8/10

Generating 4.7B in free cash flow

Areas to Watch

MNST3 concerns · Avg: 4.0/10
PEG RatioValuation
1.874/10

Expensive relative to growth rate

P/E RatioValuation
39.6x4/10

Premium valuation, high expectations priced in

Price/BookValuation
8.8x4/10

Trading at 8.8x book value

PEP4 concerns · Avg: 3.3/10
P/E RatioValuation
26.3x4/10

Moderate valuation

Price/BookValuation
10.3x4/10

Trading at 10.3x book value

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
3.202/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : MNST

The strongest argument for MNST centers on EPS Growth, Altman Z-Score, Market Cap. Profitability is solid with margins at 23.0% and operating margin at 29.5%. Revenue growth of 17.6% demonstrates continued momentum.

Bull Case : PEP

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

Bear Case : MNST

The primary concerns for MNST are PEG Ratio, P/E Ratio, Price/Book.

Bear Case : PEP

The primary concerns for PEP are P/E Ratio, Price/Book, Piotroski F-Score.

Key Dynamics to Monitor

MNST profiles as a growth stock while PEP is a value play — different risk/reward profiles.

MNST carries more volatility with a beta of 0.44 — expect wider price swings.

MNST is growing revenue faster at 17.6% — sustainability is the question.

PEP generates stronger free cash flow (4.7B), providing more financial flexibility.

Bottom Line

MNST scores higher overall (68/100 vs 59/100), backed by strong 23.0% margins and 17.6% revenue growth. PEP offers better value entry with a 45.5% margin of safety. 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.

Monster Beverage Corp

CONSUMER DEFENSIVE · BEVERAGES - NON-ALCOHOLIC · USA

Monster Beverage Corporation is an American beverage company that manufactures energy drinks including Monster Energy, Relentless and Burn.

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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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