WallStSmart

PepsiCo Inc (PEP)vs22nd Century Group Inc (XXII)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

PepsiCo Inc generates 1876067% more annual revenue ($96.90B vs $5.17M). PEP leads profitability with a 10.8% profit margin vs -76.0%. PEP earns a higher WallStSmart Score of 69/100 (B-).

PEP

Strong Buy

69

out of 100

Grade: B-

Growth: 6.7Profit: 8.0Value: 4.7Quality: 4.0
Piotroski: 3/9Altman Z: 2.26

XXII

Avoid

31

out of 100

Grade: F

Growth: 2.7Profit: 2.0Value: 6.7Quality: 6.5
Piotroski: 4/9Altman Z: -20.53
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

PEPFair Value (-2.5%)

Margin of Safety

-2.5%

Fair Value

$140.01

Current Price

$142.19

$2.18 premium

UndervaluedFair: $140.01Overvalued
XXIIUndervalued (+52.8%)

Margin of Safety

+52.8%

Fair Value

$11.90

Current Price

$3.04

$8.86 discount

UndervaluedFair: $11.90Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

PEP4 strengths · Avg: 9.3/10
Return on EquityProfitability
47.5%10/10

Every $100 of equity generates 47 in profit

EPS GrowthGrowth
137.0%10/10

Earnings expanding 137.0% YoY

Market CapQuality
$188.84B9/10

Large-cap with strong market position

Free Cash FlowQuality
$1.50B8/10

Generating 1.5B in free cash flow

XXII2 strengths · Avg: 10.0/10
Price/BookValuation
0.0x10/10

Reasonable price relative to book value

Debt/EquityHealth
0.0710/10

Conservative balance sheet, low leverage

Areas to Watch

PEP4 concerns · Avg: 3.0/10
PEG RatioValuation
1.534/10

Expensive relative to growth rate

Price/BookValuation
8.8x4/10

Trading at 8.8x book value

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Debt/EquityHealth
2.411/10

Elevated debt levels

XXII4 concerns · Avg: 2.8/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Market CapQuality
$2.68M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
-103.6%2/10

ROE of -103.6% — below average capital efficiency

Revenue GrowthGrowth
-40.4%2/10

Revenue declined 40.4%

Comparative Analysis Report

WallStSmart Research

Bull Case : PEP

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

Bull Case : XXII

The strongest argument for XXII centers on Price/Book, Debt/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 : XXII

The primary concerns for XXII are EPS Growth, Market Cap, Return on Equity.

Key Dynamics to Monitor

PEP profiles as a value stock while XXII is a turnaround play — different risk/reward profiles.

XXII carries more volatility with a beta of 0.60 — expect wider price swings.

PEP is growing revenue faster at 6.4% — sustainability is the question.

PEP generates stronger free cash flow (1.5B), providing more financial flexibility.

Bottom Line

PEP scores higher overall (69/100 vs 31/100). XXII offers better value entry with a 52.8% margin of safety. Both earn "Strong Buy" and "Avoid" 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.

22nd Century Group Inc

CONSUMER DEFENSIVE · TOBACCO · USA

22nd Century Group Inc (Ticker: XXII) is an innovative biopharmaceutical and agricultural leader dedicated to tobacco harm reduction through advanced genetic engineering. The company specializes in the development of low-nicotine tobacco products aimed at reducing nicotine addiction and enhancing public health. Additionally, 22nd Century is strategically diversifying into the burgeoning hemp and cannabis markets, aligning itself with the rapid growth of the legal cannabis sector. By prioritizing scientific research and regulatory compliance, 22nd Century presents a compelling investment opportunity for institutional investors interested in transformative, socially responsible sectors.

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