Northrop Grumman Corporation (NOC)vsPepsiCo Inc (PEP)
NOC
Northrop Grumman Corporation
$691.21
+1.33%
INDUSTRIALS · Cap: $97.36B
PEP
PepsiCo Inc
$151.73
+0.76%
CONSUMER DEFENSIVE · Cap: $205.91B
Smart Verdict
WallStSmart Research — data-driven comparison
PepsiCo Inc generates 124% more annual revenue ($93.92B vs $41.95B). NOC leads profitability with a 10.0% profit margin vs 8.8%. PEP appears more attractively valued with a PEG of 3.01. PEP earns a higher WallStSmart Score of 59/100 (C).
NOC
Buy56
out of 100
Grade: C
PEP
Buy59
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+24.9%
Fair Value
$904.35
Current Price
$691.21
$213.14 discount
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
Large-cap with strong market position
Every $100 of equity generates 26 in profit
Generating 3.2B in free cash flow
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
Grey zone — moderate risk
Elevated debt levels
Weak financial health signals
Expensive relative to growth rate
Moderate valuation
Trading at 10.2x book value
Weak financial health signals
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : NOC
The strongest argument for NOC centers on Market Cap, Return on Equity, Free Cash Flow.
Bull Case : PEP
The strongest argument for PEP centers on Market Cap, Return on Equity, EPS Growth.
Bear Case : NOC
The primary concerns for NOC are Altman Z-Score, Debt/Equity, Piotroski F-Score.
Bear Case : PEP
The primary concerns for PEP are P/E Ratio, Price/Book, Piotroski F-Score.
Key Dynamics to Monitor
PEP carries more volatility with a beta of 0.38 — expect wider price swings.
NOC is growing revenue faster at 9.6% — sustainability is the question.
PEP generates stronger free cash flow (4.7B), providing more financial flexibility.
Monitor AEROSPACE & DEFENSE industry trends, competitive dynamics, and regulatory changes.
Bottom Line
PEP scores higher overall (59/100 vs 56/100). NOC offers better value entry with a 24.9% 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.
Northrop Grumman Corporation
INDUSTRIALS · AEROSPACE & DEFENSE · USA
Northrop Grumman Corporation (NYSE: NOC) is an American multinational aerospace and defense technology company.
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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