Oracle Corporation (ORCL)vsPepsiCo Inc (PEP)
ORCL
Oracle Corporation
$195.95
+0.70%
TECHNOLOGY · Cap: $559.65B
PEP
PepsiCo Inc
$154.62
-1.07%
CONSUMER DEFENSIVE · Cap: $213.64B
Smart Verdict
WallStSmart Research — data-driven comparison
PepsiCo Inc generates 49% more annual revenue ($95.45B vs $64.08B). ORCL leads profitability with a 25.3% profit margin vs 9.2%. ORCL appears more attractively valued with a PEG of 1.14. ORCL earns a higher WallStSmart Score of 71/100 (B).
ORCL
Strong Buy71
out of 100
Grade: B
PEP
Buy63
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-71.0%
Fair Value
$113.80
Current Price
$195.95
$82.15 premium
Margin of Safety
-1.0%
Fair Value
$154.81
Current Price
$154.62
$0.19 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 58 in profit
Strong operational efficiency at 32.7%
Keeps 25 of every $100 in revenue as profit
Revenue surging 21.7% year-over-year
Earnings expanding 24.5% YoY
Mega-cap, among the largest globally
Every $100 of equity generates 44 in profit
Earnings expanding 27.8% YoY
Areas to Watch
Premium valuation, high expectations priced in
Trading at 16.8x book value
Weak financial health signals
Negative free cash flow — burning cash
Expensive relative to growth rate
Trading at 9.9x book value
Weak financial health signals
Negative free cash flow — burning cash
Comparative Analysis Report
WallStSmart ResearchBull Case : ORCL
The strongest argument for ORCL centers on Market Cap, Return on Equity, Operating Margin. Profitability is solid with margins at 25.3% and operating margin at 32.7%. Revenue growth of 21.7% demonstrates continued momentum.
Bull Case : PEP
The strongest argument for PEP centers on Market Cap, Return on Equity, EPS Growth.
Bear Case : ORCL
The primary concerns for ORCL are P/E Ratio, Price/Book, Piotroski F-Score. Debt-to-equity of 4.15 is elevated, increasing financial risk.
Bear Case : PEP
The primary concerns for PEP are PEG Ratio, Price/Book, Piotroski F-Score.
Key Dynamics to Monitor
ORCL profiles as a growth stock while PEP is a value play — different risk/reward profiles.
ORCL carries more volatility with a beta of 1.54 — expect wider price swings.
ORCL is growing revenue faster at 21.7% — sustainability is the question.
PEP generates stronger free cash flow (-406M), providing more financial flexibility.
Bottom Line
ORCL scores higher overall (71/100 vs 63/100), backed by strong 25.3% margins and 21.7% revenue growth. 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.
Oracle Corporation
TECHNOLOGY · SOFTWARE - INFRASTRUCTURE · USA
Oracle is an American multinational computer technology corporation headquartered in Austin, Texas. The company was formerly headquartered in Redwood Shores, California until December 2020 when it moved its headquarters to Texas. The company sells database software and technology, cloud engineered systems, and enterprise software products, particularly its own brands of database management systems.
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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