PepsiCo Inc (PEP)vsWarner Bros Discovery Inc (WBD)
PEP
PepsiCo Inc
$154.62
-1.07%
CONSUMER DEFENSIVE · Cap: $213.64B
WBD
Warner Bros Discovery Inc
$27.11
-0.04%
COMMUNICATION SERVICES · Cap: $67.99B
Smart Verdict
WallStSmart Research — data-driven comparison
PepsiCo Inc generates 156% more annual revenue ($95.45B vs $37.30B). PEP leads profitability with a 9.2% profit margin vs 1.9%. PEP appears more attractively valued with a PEG of 1.68. PEP earns a higher WallStSmart Score of 63/100 (C+).
PEP
Buy63
out of 100
Grade: C+
WBD
Buy51
out of 100
Grade: C-
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
+60.5%
Fair Value
$70.90
Current Price
$27.11
$43.79 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
Earnings expanding 226.7% YoY
Large-cap with strong market position
Reasonable price relative to book value
Areas to Watch
Expensive relative to growth rate
Trading at 9.9x book value
Weak financial health signals
Negative free cash flow — burning cash
ROE of 2.1% — below average capital efficiency
1.9% margin — thin
Expensive relative to growth rate
Revenue declined 5.7%
Comparative Analysis Report
WallStSmart ResearchBull Case : PEP
The strongest argument for PEP centers on Market Cap, Return on Equity, EPS Growth.
Bull Case : WBD
The strongest argument for WBD centers on EPS Growth, Market Cap, Price/Book.
Bear Case : PEP
The primary concerns for PEP are PEG Ratio, Price/Book, Piotroski F-Score.
Bear Case : WBD
The primary concerns for WBD are Return on Equity, Profit Margin, PEG Ratio. Thin 1.9% margins leave little buffer for downturns.
Key Dynamics to Monitor
WBD carries more volatility with a beta of 1.57 — expect wider price swings.
PEP is growing revenue faster at 8.5% — sustainability is the question.
PEP generates stronger free cash flow (-406M), providing more financial flexibility.
Monitor BEVERAGES - NON-ALCOHOLIC industry trends, competitive dynamics, and regulatory changes.
Bottom Line
PEP scores higher overall (63/100 vs 51/100). WBD offers better value entry with a 60.5% 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.
Warner Bros Discovery Inc
COMMUNICATION SERVICES · ENTERTAINMENT · USA
Warner Bros. The company is headquartered in New York, New York.
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