WallStSmart

PepsiCo Inc (PEP)vsRocky Mountain Chocolate Factory (RMCF)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

PepsiCo Inc generates 321949% more annual revenue ($95.45B vs $29.64M). PEP leads profitability with a 9.2% profit margin vs -13.6%. PEP earns a higher WallStSmart Score of 63/100 (C+).

PEP

Buy

63

out of 100

Grade: C+

Growth: 6.0Profit: 8.0Value: 5.3Quality: 4.8
Piotroski: 3/9Altman Z: 2.26

RMCF

Avoid

25

out of 100

Grade: F

Growth: 2.7Profit: 2.5Value: 6.7Quality: 4.0
Piotroski: 3/9Altman Z: 0.59
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

PEPUndervalued (+3.6%)

Margin of Safety

+3.6%

Fair Value

$154.78

Current Price

$149.12

$5.66 discount

UndervaluedFair: $154.78Overvalued
RMCFUndervalued (+59.6%)

Margin of Safety

+59.6%

Fair Value

$6.78

Current Price

$2.13

$4.65 discount

UndervaluedFair: $6.78Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

PEP3 strengths · Avg: 9.3/10
Market CapQuality
$204.04B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
43.9%10/10

Every $100 of equity generates 44 in profit

EPS GrowthGrowth
27.8%8/10

Earnings expanding 27.8% YoY

RMCF1 strengths · Avg: 8.0/10
Price/BookValuation
2.8x8/10

Reasonable price relative to book value

Areas to Watch

PEP4 concerns · Avg: 3.3/10
PEG RatioValuation
1.674/10

Expensive relative to growth rate

Price/BookValuation
9.5x4/10

Trading at 9.5x book value

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Free Cash FlowQuality
$-406.00M2/10

Negative free cash flow — burning cash

RMCF4 concerns · Avg: 3.0/10
Market CapQuality
$23.71M3/10

Smaller company, higher risk/reward

Operating MarginProfitability
1.1%3/10

Operating margin of 1.1%

Debt/EquityHealth
1.543/10

Elevated debt levels

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull Case : PEP

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

Bull Case : RMCF

The strongest argument for RMCF centers on Price/Book.

Bear Case : PEP

The primary concerns for PEP are PEG Ratio, Price/Book, Piotroski F-Score.

Bear Case : RMCF

The primary concerns for RMCF are Market Cap, Operating Margin, Debt/Equity. Debt-to-equity of 1.54 is elevated, increasing financial risk.

Key Dynamics to Monitor

PEP profiles as a value stock while RMCF is a turnaround play — different risk/reward profiles.

RMCF carries more volatility with a beta of 0.70 — expect wider price swings.

PEP is growing revenue faster at 8.5% — sustainability is the question.

RMCF generates stronger free cash flow (-1M), providing more financial flexibility.

Bottom Line

PEP scores higher overall (63/100 vs 25/100). RMCF offers better value entry with a 59.6% margin of safety. Both earn "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.

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.

Rocky Mountain Chocolate Factory

CONSUMER DEFENSIVE · CONFECTIONERS · USA

Rocky Mountain Chocolate Factory, Inc., is a confectionery franchisor, manufacturer and retail operator. The company is headquartered in Durango, Colorado.

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