PepsiCo Inc (PEP)vsTexas Instruments Incorporated (TXN)
PEP
PepsiCo Inc
$151.73
+0.76%
CONSUMER DEFENSIVE · Cap: $205.91B
TXN
Texas Instruments Incorporated
$196.77
+1.10%
TECHNOLOGY · Cap: $179.15B
Smart Verdict
WallStSmart Research — data-driven comparison
PepsiCo Inc generates 431% more annual revenue ($93.92B vs $17.68B). TXN leads profitability with a 28.3% profit margin vs 8.8%. TXN appears more attractively valued with a PEG of 1.47. TXN earns a higher WallStSmart Score of 63/100 (C+).
PEP
Buy59
out of 100
Grade: C
TXN
Buy63
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+45.9%
Fair Value
$280.33
Current Price
$151.73
$128.60 discount
Margin of Safety
-430.9%
Fair Value
$37.06
Current Price
$196.77
$159.71 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 43 in profit
Earnings expanding 67.5% YoY
Generating 4.7B in free cash flow
Every $100 of equity generates 30 in profit
Strong operational efficiency at 34.0%
Safe zone — low bankruptcy risk
Large-cap with strong market position
Keeps 28 of every $100 in revenue as profit
Generating 1.3B in free cash flow
Areas to Watch
Moderate valuation
Trading at 10.2x book value
Weak financial health signals
Expensive relative to growth rate
Premium valuation, high expectations priced in
Trading at 11.0x book value
Earnings declined 3.2%
Comparative Analysis Report
WallStSmart ResearchBull Case : PEP
The strongest argument for PEP centers on Market Cap, Return on Equity, EPS Growth.
Bull Case : TXN
The strongest argument for TXN centers on Return on Equity, Operating Margin, Altman Z-Score. Profitability is solid with margins at 28.3% and operating margin at 34.0%. Revenue growth of 10.4% demonstrates continued momentum.
Bear Case : PEP
The primary concerns for PEP are P/E Ratio, Price/Book, Piotroski F-Score.
Bear Case : TXN
The primary concerns for TXN are P/E Ratio, Price/Book, EPS Growth.
Key Dynamics to Monitor
PEP profiles as a value stock while TXN is a mature play — different risk/reward profiles.
TXN carries more volatility with a beta of 0.98 — expect wider price swings.
TXN is growing revenue faster at 10.4% — sustainability is the question.
PEP generates stronger free cash flow (4.7B), providing more financial flexibility.
Bottom Line
TXN scores higher overall (63/100 vs 59/100), backed by strong 28.3% margins and 10.4% revenue growth. PEP offers better value entry with a 45.9% 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.
Texas Instruments Incorporated
TECHNOLOGY · SEMICONDUCTORS · USA
Texas Instruments Incorporated (TI) is an American technology company headquartered in Dallas, Texas, that designs and manufactures semiconductors and various integrated circuits, which it sells to electronics designers and manufacturers globally. It is one of the top 10 semiconductor companies worldwide based on sales volume.
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