WallStSmart

Oatly Group AB ADR (OTLY)vsPepsiCo Inc (PEP)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

PepsiCo Inc generates 10376% more annual revenue ($96.90B vs $925.00M). PEP leads profitability with a 10.8% profit margin vs -13.8%. PEP earns a higher WallStSmart Score of 71/100 (B).

OTLY

Avoid

33

out of 100

Grade: F

Growth: 6.0Profit: 2.0Value: 6.7Quality: 5.0
Piotroski: 4/9Altman Z: -2.43

PEP

Strong Buy

71

out of 100

Grade: B

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

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

OTLYUndervalued (+38.5%)

Margin of Safety

+38.5%

Fair Value

$20.14

Current Price

$12.71

$7.43 discount

UndervaluedFair: $20.14Overvalued
PEPUndervalued (+2.6%)

Margin of Safety

+2.6%

Fair Value

$139.91

Current Price

$136.32

$3.59 discount

UndervaluedFair: $139.91Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

OTLY2 strengths · Avg: 9.0/10
Debt/EquityHealth
-22.4410/10

Conservative balance sheet, low leverage

Revenue GrowthGrowth
15.2%8/10

15.2% revenue growth

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
$186.21B9/10

Large-cap with strong market position

P/E RatioValuation
17.9x8/10

Attractively priced relative to earnings

Free Cash FlowQuality
$1.50B8/10

Generating 1.5B in free cash flow

Areas to Watch

OTLY4 concerns · Avg: 2.8/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Market CapQuality
$449.32M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
-241.6%2/10

ROE of -241.6% — below average capital efficiency

Free Cash FlowQuality
$-592,0002/10

Negative free cash flow — burning cash

PEP3 concerns · Avg: 2.7/10
Price/BookValuation
8.4x4/10

Trading at 8.4x 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 : OTLY

The strongest argument for OTLY centers on Debt/Equity, Revenue Growth. Revenue growth of 15.2% demonstrates continued momentum.

Bull Case : PEP

The strongest argument for PEP centers on Return on Equity, EPS Growth, Market Cap. PEG of 1.40 suggests the stock is reasonably priced for its growth.

Bear Case : OTLY

The primary concerns for OTLY are EPS Growth, Market Cap, Return on Equity.

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

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

OTLY carries more volatility with a beta of 1.81 — expect wider price swings.

OTLY is growing revenue faster at 15.2% — 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 33/100). OTLY offers better value entry with a 38.5% margin of safety. Both earn "Strong Buy" and "Avoid" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Oatly Group AB ADR

CONSUMER DEFENSIVE · PACKAGED FOODS · USA

Oatly Group AB, an oat milk company, offers a range of plant-based dairy products made from oats in Sweden. The company is headquartered in Malm, Sweden.

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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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