WallStSmart

Petróleo Brasileiro S.A. - Petrobras (PBR-A)vsPepsiCo Inc (PEP)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Petróleo Brasileiro S.A. - Petrobras generates 430% more annual revenue ($497.55B vs $93.92B). PBR-A leads profitability with a 22.1% profit margin vs 8.8%. PBR-A appears more attractively valued with a PEG of 0.30. PBR-A earns a higher WallStSmart Score of 75/100 (B).

PBR-A

Strong Buy

75

out of 100

Grade: B

Growth: 4.0Profit: 9.0Value: 10.0Quality: 5.5
Piotroski: 5/9Altman Z: 1.35

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

PBR-AUndervalued (+37.8%)

Margin of Safety

+37.8%

Fair Value

$23.71

Current Price

$17.95

$5.76 discount

UndervaluedFair: $23.71Overvalued
PEPUndervalued (+45.9%)

Margin of Safety

+45.9%

Fair Value

$280.33

Current Price

$151.73

$128.60 discount

UndervaluedFair: $280.33Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

PBR-A6 strengths · Avg: 9.2/10
PEG RatioValuation
0.3010/10

Growing faster than its price suggests

P/E RatioValuation
5.6x10/10

Attractively priced relative to earnings

Market CapQuality
$114.52B9/10

Large-cap with strong market position

Return on EquityProfitability
28.2%9/10

Every $100 of equity generates 28 in profit

Profit MarginProfitability
22.1%9/10

Keeps 22 of every $100 in revenue as profit

Price/BookValuation
3.0x8/10

Reasonable price relative to book value

PEP4 strengths · Avg: 9.5/10
Market CapQuality
$205.91B10/10

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

PBR-A2 concerns · Avg: 3.0/10
EPS GrowthGrowth
0.5%4/10

0.5% earnings growth

Altman Z-ScoreHealth
1.352/10

Distress zone — elevated risk

PEP4 concerns · Avg: 3.3/10
P/E RatioValuation
25.1x4/10

Moderate valuation

Price/BookValuation
10.2x4/10

Trading at 10.2x book value

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
3.012/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : PBR-A

The strongest argument for PBR-A centers on PEG Ratio, P/E Ratio, Market Cap. Profitability is solid with margins at 22.1% and operating margin at 26.9%. PEG of 0.30 suggests the stock is reasonably priced for its growth.

Bull Case : PEP

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

Bear Case : PBR-A

The primary concerns for PBR-A are EPS Growth, Altman Z-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.

PEP is growing revenue faster at 5.6% — sustainability is the question.

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

Monitor OIL & GAS INTEGRATED industry trends, competitive dynamics, and regulatory changes.

Bottom Line

PBR-A scores higher overall (75/100 vs 59/100), backed by strong 22.1% margins. PEP offers better value entry with a 45.9% 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.

Petróleo Brasileiro S.A. - Petrobras

ENERGY · OIL & GAS INTEGRATED · USA

Petrleo Brasileiro SA - Petrobras produces and sells oil and gas in Brazil and internationally. The company is headquartered in Rio de Janeiro, Brazil.

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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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