Archer-Daniels-Midland Company (ADM)vsPepsiCo Inc (PEP)
ADM
Archer-Daniels-Midland Company
$80.92
-2.94%
CONSUMER DEFENSIVE · Cap: $38.67B
PEP
PepsiCo Inc
$141.92
+1.37%
CONSUMER DEFENSIVE · Cap: $194.11B
Smart Verdict
WallStSmart Research — data-driven comparison
PepsiCo Inc generates 18% more annual revenue ($95.45B vs $80.58B). PEP leads profitability with a 9.2% profit margin vs 1.3%. PEP appears more attractively valued with a PEG of 1.52. PEP earns a higher WallStSmart Score of 62/100 (C+).
ADM
Hold49
out of 100
Grade: D+
PEP
Buy62
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-31.7%
Fair Value
$52.62
Current Price
$80.92
$28.30 premium
Margin of Safety
-2.5%
Fair Value
$138.40
Current Price
$141.92
$3.52 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Safe zone — low bankruptcy risk
Reasonable price relative to book value
Every $100 of equity generates 41 in profit
Large-cap with strong market position
Earnings expanding 27.8% YoY
Areas to Watch
Premium valuation, high expectations priced in
1.6% revenue growth
0.9% earnings growth
ROE of 4.7% — below average capital efficiency
Expensive relative to growth rate
Trading at 9.1x book value
Weak financial health signals
Negative free cash flow — burning cash
Comparative Analysis Report
WallStSmart ResearchBull Case : ADM
The strongest argument for ADM centers on Altman Z-Score, Price/Book.
Bull Case : PEP
The strongest argument for PEP centers on Return on Equity, Market Cap, EPS Growth.
Bear Case : ADM
The primary concerns for ADM are P/E Ratio, Revenue Growth, EPS Growth. Thin 1.3% margins leave little buffer for downturns.
Bear Case : PEP
The primary concerns for PEP are PEG Ratio, Price/Book, Piotroski F-Score. Debt-to-equity of 2.47 is elevated, increasing financial risk.
Key Dynamics to Monitor
ADM carries more volatility with a beta of 0.60 — expect wider price swings.
PEP is growing revenue faster at 8.5% — sustainability is the question.
ADM generates stronger free cash flow (-44M), providing more financial flexibility.
Monitor FARM PRODUCTS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
PEP scores higher overall (62/100 vs 49/100). Both earn "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.
Archer-Daniels-Midland Company
CONSUMER DEFENSIVE · FARM PRODUCTS · USA
The Archer-Daniels-Midland Company, commonly known as ADM, is an American multinational food processing and commodities trading corporation founded in 1902 and headquartered in Chicago, Illinois. The company operates more than 270 plants and 420 crop procurement facilities worldwide, where cereal grains and oilseeds are processed into products used in food, beverage, nutraceutical, industrial, and animal feed markets worldwide.
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.
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