WallStSmart

PepsiCo Inc (PEP)vsThe TJX Companies Inc (TJX)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

PepsiCo Inc generates 56% more annual revenue ($93.92B vs $60.37B). TJX leads profitability with a 9.1% profit margin vs 8.8%. PEP appears more attractively valued with a PEG of 3.01. PEP earns a higher WallStSmart Score of 59/100 (C).

PEP

Buy

59

out of 100

Grade: C

Growth: 6.7Profit: 7.5Value: 7.3Quality: 4.8
Piotroski: 3/9Altman Z: 2.26

TJX

Buy

56

out of 100

Grade: C

Growth: 6.7Profit: 7.5Value: 7.3Quality: 6.3
Piotroski: 5/9Altman Z: 3.30
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

PEPUndervalued (+45.9%)

Margin of Safety

+45.9%

Fair Value

$280.33

Current Price

$151.73

$128.60 discount

UndervaluedFair: $280.33Overvalued
TJXUndervalued (+30.8%)

Margin of Safety

+30.8%

Fair Value

$227.92

Current Price

$159.74

$68.18 discount

UndervaluedFair: $227.92Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

PEP4 strengths · Avg: 9.5/10
Market CapQuality
$205.91B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
42.8%10/10

Every $100 of equity generates 43 in profit

EPS GrowthGrowth
67.5%10/10

Earnings expanding 67.5% YoY

Free Cash FlowQuality
$4.70B8/10

Generating 4.7B in free cash flow

TJX5 strengths · Avg: 9.0/10
Return on EquityProfitability
59.1%10/10

Every $100 of equity generates 59 in profit

Altman Z-ScoreHealth
3.3010/10

Safe zone — low bankruptcy risk

Market CapQuality
$177.78B9/10

Large-cap with strong market position

EPS GrowthGrowth
28.3%8/10

Earnings expanding 28.3% YoY

Free Cash FlowQuality
$2.63B8/10

Generating 2.6B in free cash flow

Areas to Watch

PEP4 concerns · Avg: 3.3/10
P/E RatioValuation
25.1x4/10

Moderate valuation

Price/BookValuation
10.2x4/10

Trading at 10.2x book value

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
3.012/10

Expensive relative to growth rate

TJX3 concerns · Avg: 3.3/10
P/E RatioValuation
32.8x4/10

Premium valuation, high expectations priced in

Price/BookValuation
17.6x4/10

Trading at 17.6x book value

PEG RatioValuation
3.242/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : PEP

The strongest argument for PEP centers on Market Cap, Return on Equity, EPS Growth.

Bull Case : TJX

The strongest argument for TJX centers on Return on Equity, Altman Z-Score, Market Cap.

Bear Case : PEP

The primary concerns for PEP are P/E Ratio, Price/Book, Piotroski F-Score.

Bear Case : TJX

The primary concerns for TJX are P/E Ratio, Price/Book, PEG Ratio.

Key Dynamics to Monitor

TJX carries more volatility with a beta of 0.74 — expect wider price swings.

TJX is growing revenue faster at 8.5% — sustainability is the question.

PEP generates stronger free cash flow (4.7B), providing more financial flexibility.

Monitor BEVERAGES - NON-ALCOHOLIC industry trends, competitive dynamics, and regulatory changes.

Bottom Line

PEP scores higher overall (59/100 vs 56/100). TJX offers better value entry with a 30.8% margin of safety. 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.

The TJX Companies Inc

CONSUMER CYCLICAL · APPAREL RETAIL · USA

The TJX Companies, Inc. (abbreviated TJX) is an American multinational off-price department store corporation, headquartered in Framingham, Massachusetts.

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