WallStSmart

PepsiCo Inc (PEP)vsSysco Corporation (SYY)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

PepsiCo Inc generates 16% more annual revenue ($96.90B vs $83.57B). PEP leads profitability with a 10.8% profit margin vs 2.1%. PEP appears more attractively valued with a PEG of 1.46. PEP earns a higher WallStSmart Score of 71/100 (B).

PEP

Strong Buy

71

out of 100

Grade: B

Growth: 6.7Profit: 8.0Value: 6.0Quality: 4.0
Piotroski: 3/9Altman Z: 2.26

SYY

Buy

50

out of 100

Grade: C-

Growth: 4.0Profit: 6.5Value: 4.0Quality: 5.0
Piotroski: 3/9Altman Z: 4.23
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

PEPFair Value (-1.9%)

Margin of Safety

-1.9%

Fair Value

$140.22

Current Price

$142.86

$2.64 premium

UndervaluedFair: $140.22Overvalued
SYYSignificantly Overvalued (-19.9%)

Margin of Safety

-19.9%

Fair Value

$73.41

Current Price

$85.32

$11.91 premium

UndervaluedFair: $73.41Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

PEP5 strengths · Avg: 9.0/10
Return on EquityProfitability
47.5%10/10

Every $100 of equity generates 47 in profit

EPS GrowthGrowth
137.0%10/10

Earnings expanding 137.0% YoY

Market CapQuality
$185.30B9/10

Large-cap with strong market position

P/E RatioValuation
17.7x8/10

Attractively priced relative to earnings

Free Cash FlowQuality
$1.50B8/10

Generating 1.5B in free cash flow

SYY2 strengths · Avg: 10.0/10
Return on EquityProfitability
75.6%10/10

Every $100 of equity generates 76 in profit

Altman Z-ScoreHealth
4.2310/10

Safe zone — low bankruptcy risk

Areas to Watch

PEP3 concerns · Avg: 2.7/10
Price/BookValuation
9.1x4/10

Trading at 9.1x book value

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Debt/EquityHealth
2.411/10

Elevated debt levels

SYY4 concerns · Avg: 3.8/10
PEG RatioValuation
1.674/10

Expensive relative to growth rate

Price/BookValuation
17.8x4/10

Trading at 17.8x book value

Revenue GrowthGrowth
4.7%4/10

4.7% revenue growth

Profit MarginProfitability
2.1%3/10

2.1% margin — thin

Comparative Analysis Report

WallStSmart Research

Bull Case : PEP

The strongest argument for PEP centers on Return on Equity, EPS Growth, Market Cap. PEG of 1.46 suggests the stock is reasonably priced for its growth.

Bull Case : SYY

The strongest argument for SYY centers on Return on Equity, Altman Z-Score.

Bear Case : PEP

The primary concerns for PEP are Price/Book, Piotroski F-Score, Debt/Equity. Debt-to-equity of 2.41 is elevated, increasing financial risk.

Bear Case : SYY

The primary concerns for SYY are PEG Ratio, Price/Book, Revenue Growth. Debt-to-equity of 6.76 is elevated, increasing financial risk. Thin 2.1% margins leave little buffer for downturns.

Key Dynamics to Monitor

SYY carries more volatility with a beta of 0.64 — expect wider price swings.

PEP is growing revenue faster at 6.4% — 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 (71/100 vs 50/100). 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.

Sysco Corporation

CONSUMER DEFENSIVE · FOOD DISTRIBUTION · USA

Sysco Corporation is an American multinational corporation involved in marketing and distributing food products, smallwares, kitchen equipment and tabletop items to restaurants, healthcare and educational facilities, hospitality businesses like hotels and inns, and wholesale to other companies that provide foodservice (like Aramark and Sodexo). The company is headquartered in the Energy Corridor district of Houston, Texas.

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