PepsiCo Inc (PEP)vsTAL Education Group (TAL)
PEP
PepsiCo Inc
$157.41
-1.79%
CONSUMER DEFENSIVE · Cap: $215.17B
TAL
TAL Education Group
$10.89
-2.51%
CONSUMER DEFENSIVE · Cap: $6.80B
Smart Verdict
WallStSmart Research — data-driven comparison
PepsiCo Inc generates 3072% more annual revenue ($95.45B vs $3.01B). TAL leads profitability with a 17.6% profit margin vs 9.2%. PEP appears more attractively valued with a PEG of 1.70. TAL earns a higher WallStSmart Score of 66/100 (B-).
PEP
Buy63
out of 100
Grade: C+
TAL
Strong Buy66
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+0.2%
Fair Value
$154.83
Current Price
$157.41
$2.58 discount
Margin of Safety
+88.2%
Fair Value
$101.06
Current Price
$10.89
$90.17 discount
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
Revenue surging 31.5% year-over-year
Earnings expanding 536.0% YoY
Attractively priced relative to earnings
Reasonable price relative to book value
Areas to Watch
Expensive relative to growth rate
Trading at 10.1x book value
Weak financial health signals
Negative free cash flow — burning cash
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : PEP
The strongest argument for PEP centers on Market Cap, Return on Equity, EPS Growth.
Bull Case : TAL
The strongest argument for TAL centers on Revenue Growth, EPS Growth, P/E Ratio. Profitability is solid with margins at 17.6% and operating margin at 9.0%. Revenue growth of 31.5% demonstrates continued momentum.
Bear Case : PEP
The primary concerns for PEP are PEG Ratio, Price/Book, Piotroski F-Score.
Bear Case : TAL
The primary concerns for TAL are PEG Ratio.
Key Dynamics to Monitor
PEP profiles as a value stock while TAL is a growth play — different risk/reward profiles.
PEP carries more volatility with a beta of 0.41 — expect wider price swings.
TAL is growing revenue faster at 31.5% — sustainability is the question.
TAL generates stronger free cash flow (816M), providing more financial flexibility.
Bottom Line
TAL scores higher overall (66/100 vs 63/100), backed by strong 17.6% margins and 31.5% revenue growth. 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.
TAL Education Group
CONSUMER DEFENSIVE · EDUCATION & TRAINING SERVICES · China
TAL Education Group offers K-12 afterschool tutoring services in the People's Republic of China. The company is headquartered in Beijing, the People's Republic of China.
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