PepsiCo Inc (PEP)vsPriceSmart Inc (PSMT)
PEP
PepsiCo Inc
$139.02
+0.42%
CONSUMER DEFENSIVE · Cap: $190.01B
PSMT
PriceSmart Inc
$177.05
-0.60%
CONSUMER DEFENSIVE · Cap: $5.98B
Smart Verdict
WallStSmart Research — data-driven comparison
PepsiCo Inc generates 1603% more annual revenue ($96.90B vs $5.69B). PEP leads profitability with a 10.8% profit margin vs 2.8%. PEP appears more attractively valued with a PEG of 1.51. PEP earns a higher WallStSmart Score of 69/100 (B-).
PEP
Strong Buy69
out of 100
Grade: B-
PSMT
Buy54
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+1.0%
Fair Value
$140.22
Current Price
$139.02
$1.20 discount
Margin of Safety
-40.0%
Fair Value
$138.47
Current Price
$177.05
$38.58 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
Safe zone — low bankruptcy risk
Conservative balance sheet, low leverage
Areas to Watch
Expensive relative to growth rate
Trading at 8.6x book value
Weak financial health signals
Elevated debt levels
Expensive relative to growth rate
Premium valuation, high expectations priced in
2.8% margin — thin
Operating margin of 4.5%
Comparative Analysis Report
WallStSmart ResearchBull Case : PEP
The strongest argument for PEP centers on Return on Equity, EPS Growth, Market Cap.
Bull Case : PSMT
The strongest argument for PSMT centers on Altman Z-Score, Debt/Equity. Revenue growth of 12.5% demonstrates continued momentum.
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 : PSMT
The primary concerns for PSMT are PEG Ratio, P/E Ratio, Profit Margin. Thin 2.8% margins leave little buffer for downturns.
Key Dynamics to Monitor
PSMT carries more volatility with a beta of 0.77 — expect wider price swings.
PSMT is growing revenue faster at 12.5% — sustainability is the question.
PEP generates stronger free cash flow (1.5B), providing more financial flexibility.
Monitor BEVERAGES - NON-ALCOHOLIC industry trends, competitive dynamics, and regulatory changes.
Bottom Line
PEP scores higher overall (69/100 vs 54/100). 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.
PriceSmart Inc
CONSUMER DEFENSIVE · DISCOUNT STORES · USA
PriceSmart, Inc. owns and operates American-style membership shopping warehouse clubs in Central America, the Caribbean and Colombia. The company is headquartered in San Diego, California.
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