PepsiCo Inc (PEP)vsProcter & Gamble Company (PG)
PEP
PepsiCo Inc
$142.19
-1.74%
CONSUMER DEFENSIVE · Cap: $188.84B
PG
Procter & Gamble Company
$145.00
-1.28%
CONSUMER DEFENSIVE · Cap: $333.27B
Smart Verdict
WallStSmart Research — data-driven comparison
PepsiCo Inc generates 11% more annual revenue ($96.90B vs $87.03B). PG leads profitability with a 18.4% profit margin vs 10.8%. PEP appears more attractively valued with a PEG of 1.53. PEP earns a higher WallStSmart Score of 69/100 (B-).
PEP
Strong Buy69
out of 100
Grade: B-
PG
Buy55
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-2.5%
Fair Value
$140.01
Current Price
$142.19
$2.18 premium
Margin of Safety
-46.4%
Fair Value
$100.17
Current Price
$145.00
$44.83 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 47 in profit
Earnings expanding 137.0% YoY
Large-cap with strong market position
Generating 1.5B in free cash flow
Mega-cap, among the largest globally
Every $100 of equity generates 30 in profit
Strong operational efficiency at 22.1%
Generating 4.9B in free cash flow
Areas to Watch
Expensive relative to growth rate
Trading at 8.8x book value
Weak financial health signals
Elevated debt levels
1.5% revenue growth
Expensive relative to growth rate
Earnings declined 15.5%
Comparative Analysis Report
WallStSmart ResearchBull Case : PEP
The strongest argument for PEP centers on Return on Equity, EPS Growth, Market Cap.
Bull Case : PG
The strongest argument for PG centers on Market Cap, Return on Equity, Operating Margin. Profitability is solid with margins at 18.4% and operating margin at 22.1%.
Bear Case : PEP
The primary concerns for PEP are PEG Ratio, Price/Book, Piotroski F-Score. Debt-to-equity of 2.41 is elevated, increasing financial risk.
Bear Case : PG
The primary concerns for PG are Revenue Growth, PEG Ratio, EPS Growth.
Key Dynamics to Monitor
PG carries more volatility with a beta of 0.38 — expect wider price swings.
PEP is growing revenue faster at 6.4% — sustainability is the question.
PG generates stronger free cash flow (4.9B), providing more financial flexibility.
Monitor BEVERAGES - NON-ALCOHOLIC industry trends, competitive dynamics, and regulatory changes.
Bottom Line
PEP scores higher overall (69/100 vs 55/100). 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.
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.
Procter & Gamble Company
CONSUMER DEFENSIVE · HOUSEHOLD & PERSONAL PRODUCTS · USA
The Procter & Gamble Company (P&G) is an American multinational consumer goods corporation headquartered in Cincinnati, Ohio, founded in 1837 by William Procter and James Gamble. It specializes in a wide range of personal health, consumer health, personal care, and hygiene products; these products are organized into several segments including Beauty; Grooming; Health Care; Fabric & Home Care; and Baby, Feminine, & Family Care. Before the sale of Pringles to Kellogg's, its product portfolio also included food, snacks, and beverages.
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