PepsiCo Inc (PEP)vsWalmart Inc. (WMT)
PEP
PepsiCo Inc
$139.02
+0.42%
CONSUMER DEFENSIVE · Cap: $190.01B
WMT
Walmart Inc.
$111.85
-0.20%
CONSUMER DEFENSIVE · Cap: $887.72B
Smart Verdict
WallStSmart Research — data-driven comparison
Walmart Inc. generates 648% more annual revenue ($725.30B vs $96.90B). PEP leads profitability with a 10.8% profit margin vs 3.1%. 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-
WMT
Hold49
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+1.0%
Fair Value
$140.22
Current Price
$139.02
$1.20 discount
Intrinsic value data unavailable for WMT.
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
Mega-cap, among the largest globally
Safe zone — low bankruptcy risk
Every $100 of equity generates 24 in profit
Areas to Watch
Expensive relative to growth rate
Trading at 8.6x book value
Weak financial health signals
Elevated debt levels
Premium valuation, high expectations priced in
Trading at 9.4x book value
3.1% margin — thin
Operating margin of 4.2%
Comparative Analysis Report
WallStSmart ResearchBull Case : PEP
The strongest argument for PEP centers on Return on Equity, EPS Growth, Market Cap.
Bull Case : WMT
The strongest argument for WMT centers on Market Cap, Altman Z-Score, 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 : WMT
The primary concerns for WMT are P/E Ratio, Price/Book, Profit Margin. Thin 3.1% margins leave little buffer for downturns.
Key Dynamics to Monitor
WMT carries more volatility with a beta of 0.60 — expect wider price swings.
WMT is growing revenue faster at 7.3% — 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 49/100). Both earn "Strong Buy" and "Hold" 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.
Walmart Inc.
CONSUMER DEFENSIVE · DISCOUNT STORES · USA
Walmart Inc. is an American multinational retail corporation that operates a chain of hypermarkets, discount department stores, and grocery stores from the United States, headquartered in Bentonville, Arkansas. It also owns and operates Sam's Club retail warehouses.
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