PepsiCo Inc (PEP)vsTE Connectivity Ltd (TEL)
PEP
PepsiCo Inc
$154.62
-1.07%
CONSUMER DEFENSIVE · Cap: $213.64B
TEL
TE Connectivity Ltd
$206.20
-1.84%
TECHNOLOGY · Cap: $60.19B
Smart Verdict
WallStSmart Research — data-driven comparison
PepsiCo Inc generates 411% more annual revenue ($95.45B vs $18.70B). TEL leads profitability with a 15.5% profit margin vs 9.2%. TEL appears more attractively valued with a PEG of 1.12. TEL earns a higher WallStSmart Score of 76/100 (B+).
PEP
Buy63
out of 100
Grade: C+
TEL
Strong Buy76
out of 100
Grade: B+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+0.1%
Fair Value
$154.78
Current Price
$154.62
$0.16 discount
Margin of Safety
-60.0%
Fair Value
$142.79
Current Price
$206.20
$63.41 premium
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
Earnings expanding 7150.0% YoY
Large-cap with strong market position
Every $100 of equity generates 23 in profit
Strong operational efficiency at 20.3%
Areas to Watch
Expensive relative to growth rate
Trading at 9.9x book value
Weak financial health signals
Negative free cash flow — burning cash
No major concerns identified
Comparative Analysis Report
WallStSmart ResearchBull Case : PEP
The strongest argument for PEP centers on Market Cap, Return on Equity, EPS Growth.
Bull Case : TEL
The strongest argument for TEL centers on EPS Growth, Market Cap, Return on Equity. Profitability is solid with margins at 15.5% and operating margin at 20.3%. Revenue growth of 14.5% demonstrates continued momentum.
Bear Case : PEP
The primary concerns for PEP are PEG Ratio, Price/Book, Piotroski F-Score.
Bear Case : TEL
No major red flags identified for TEL, but monitor valuation.
Key Dynamics to Monitor
PEP profiles as a value stock while TEL is a mature play — different risk/reward profiles.
TEL carries more volatility with a beta of 1.18 — expect wider price swings.
TEL is growing revenue faster at 14.5% — sustainability is the question.
TEL generates stronger free cash flow (677M), providing more financial flexibility.
Bottom Line
TEL scores higher overall (76/100 vs 63/100), backed by strong 15.5% margins and 14.5% 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.
TE Connectivity Ltd
TECHNOLOGY · ELECTRONIC COMPONENTS · USA
TE Connectivity is an American Swiss-domiciled technology company that designs and manufactures connectors and sensors for several industries, such as automotive, industrial equipment, data communication systems, aerospace, defense, medical, oil and gas, consumer electronics and energy.
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