PepsiCo Inc (PEP)vsSouthern Company (SO)
PEP
PepsiCo Inc
$151.73
+0.76%
CONSUMER DEFENSIVE · Cap: $205.91B
SO
Southern Company
$94.61
+0.67%
UTILITIES · Cap: $105.91B
Smart Verdict
WallStSmart Research — data-driven comparison
PepsiCo Inc generates 218% more annual revenue ($93.92B vs $29.55B). SO leads profitability with a 14.7% profit margin vs 8.8%. SO appears more attractively valued with a PEG of 2.67. PEP earns a higher WallStSmart Score of 59/100 (C).
PEP
Buy59
out of 100
Grade: C
SO
Buy54
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+45.9%
Fair Value
$280.33
Current Price
$151.73
$128.60 discount
Margin of Safety
-254.9%
Fair Value
$26.66
Current Price
$94.61
$67.95 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 43 in profit
Earnings expanding 67.5% YoY
Generating 4.7B in free cash flow
Large-cap with strong market position
Reasonable price relative to book value
Areas to Watch
Moderate valuation
Trading at 10.2x book value
Weak financial health signals
Expensive relative to growth rate
Expensive relative to growth rate
Earnings declined 22.1%
Negative free cash flow — burning cash
Comparative Analysis Report
WallStSmart ResearchBull Case : PEP
The strongest argument for PEP centers on Market Cap, Return on Equity, EPS Growth.
Bull Case : SO
The strongest argument for SO centers on Market Cap, Price/Book. Revenue growth of 10.1% demonstrates continued momentum.
Bear Case : PEP
The primary concerns for PEP are P/E Ratio, Price/Book, Piotroski F-Score.
Bear Case : SO
The primary concerns for SO are PEG Ratio, EPS Growth, Free Cash Flow.
Key Dynamics to Monitor
SO carries more volatility with a beta of 0.41 — expect wider price swings.
SO is growing revenue faster at 10.1% — sustainability is the question.
PEP generates stronger free cash flow (4.7B), providing more financial flexibility.
Monitor BEVERAGES - NON-ALCOHOLIC industry trends, competitive dynamics, and regulatory changes.
Bottom Line
PEP scores higher overall (59/100 vs 54/100). Both earn "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.
Southern Company
UTILITIES · UTILITIES - REGULATED ELECTRIC · USA
Southern Company is an American gas and electric utility holding company based in the southern United States. It is headquartered in Atlanta, Georgia, with executive offices also located in Birmingham, Alabama.
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