PepsiCo Inc (PEP)vsConstellation Brands Inc Class A (STZ)
PEP
PepsiCo Inc
$154.62
-1.07%
CONSUMER DEFENSIVE · Cap: $213.64B
STZ
Constellation Brands Inc Class A
$148.21
-1.36%
CONSUMER DEFENSIVE · Cap: $25.88B
Smart Verdict
WallStSmart Research — data-driven comparison
PepsiCo Inc generates 944% more annual revenue ($95.45B vs $9.14B). STZ leads profitability with a 18.5% profit margin vs 9.2%. PEP appears more attractively valued with a PEG of 1.68. PEP earns a higher WallStSmart Score of 63/100 (C+).
PEP
Buy63
out of 100
Grade: C+
STZ
Buy56
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-1.0%
Fair Value
$154.81
Current Price
$154.62
$0.19 premium
Intrinsic value data unavailable for STZ.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 44 in profit
Earnings expanding 27.8% YoY
Every $100 of equity generates 23 in profit
Attractively priced relative to earnings
Strong operational efficiency at 26.7%
Areas to Watch
Expensive relative to growth rate
Trading at 9.9x book value
Weak financial health signals
Negative free cash flow — burning cash
Grey zone — moderate risk
Elevated debt levels
Expensive relative to growth rate
Revenue declined 11.3%
Comparative Analysis Report
WallStSmart ResearchBull Case : PEP
The strongest argument for PEP centers on Market Cap, Return on Equity, EPS Growth.
Bull Case : STZ
The strongest argument for STZ centers on Return on Equity, P/E Ratio, Operating Margin. Profitability is solid with margins at 18.5% and operating margin at 26.7%.
Bear Case : PEP
The primary concerns for PEP are PEG Ratio, Price/Book, Piotroski F-Score.
Bear Case : STZ
The primary concerns for STZ are Altman Z-Score, Debt/Equity, PEG Ratio.
Key Dynamics to Monitor
PEP profiles as a value stock while STZ is a declining play — different risk/reward profiles.
STZ carries more volatility with a beta of 0.42 — expect wider price swings.
PEP is growing revenue faster at 8.5% — sustainability is the question.
STZ generates stronger free cash flow (344M), providing more financial flexibility.
Bottom Line
PEP scores higher overall (63/100 vs 56/100). 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.
Constellation Brands Inc Class A
CONSUMER DEFENSIVE · BEVERAGES - BREWERS · USA
Constellation Brands, Inc., headquartered in Victor, New York, is an American producer and marketer of beer, wine, and spirits.
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