PepsiCo Inc (PEP)vsTarget Corporation (TGT)
PEP
PepsiCo Inc
$139.02
+0.42%
CONSUMER DEFENSIVE · Cap: $190.01B
TGT
Target Corporation
$149.70
+1.78%
CONSUMER DEFENSIVE · Cap: $65.63B
Smart Verdict
WallStSmart Research — data-driven comparison
Target Corporation generates 10% more annual revenue ($106.38B vs $96.90B). PEP leads profitability with a 10.8% profit margin vs 3.2%. PEP appears more attractively valued with a PEG of 1.51. PEP earns a higher WallStSmart Score of 69/100 (B-).
PEP
Strong Buy69
out of 100
Grade: B-
TGT
Buy52
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+1.0%
Fair Value
$140.22
Current Price
$139.02
$1.20 discount
Margin of Safety
+4.0%
Fair Value
$119.36
Current Price
$149.70
$30.34 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 47 in profit
Earnings expanding 137.0% YoY
Large-cap with strong market position
Generating 1.5B in free cash flow
Large-cap with strong market position
Every $100 of equity generates 21 in profit
Areas to Watch
Expensive relative to growth rate
Trading at 8.6x book value
Weak financial health signals
Elevated debt levels
3.2% margin — thin
Operating margin of 4.5%
Elevated debt levels
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : PEP
The strongest argument for PEP centers on Return on Equity, EPS Growth, Market Cap.
Bull Case : TGT
The strongest argument for TGT centers on Market Cap, Return on Equity.
Bear Case : PEP
The primary concerns for PEP are PEG Ratio, Price/Book, Piotroski F-Score. Debt-to-equity of 2.41 is elevated, increasing financial risk.
Bear Case : TGT
The primary concerns for TGT are Profit Margin, Operating Margin, Debt/Equity. Thin 3.2% margins leave little buffer for downturns.
Key Dynamics to Monitor
TGT carries more volatility with a beta of 0.97 — expect wider price swings.
TGT is growing revenue faster at 6.7% — 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 (69/100 vs 52/100). 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.
Target Corporation
CONSUMER DEFENSIVE · DISCOUNT STORES · USA
Target Corporation is an American retail corporation. Their retail formats include the discount store Target, the hypermarket SuperTarget, and small-format stores previously named CityTarget and TargetExpress before being consolidated under the Target branding.
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