Dollar Tree Inc (DLTR)vsPepsiCo Inc (PEP)
DLTR
Dollar Tree Inc
$108.80
-0.43%
CONSUMER DEFENSIVE · Cap: $21.91B
PEP
PepsiCo Inc
$141.92
+1.37%
CONSUMER DEFENSIVE · Cap: $194.11B
Smart Verdict
WallStSmart Research — data-driven comparison
PepsiCo Inc generates 383% more annual revenue ($95.45B vs $19.75B). PEP leads profitability with a 9.2% profit margin vs 6.5%. DLTR appears more attractively valued with a PEG of 1.43. PEP earns a higher WallStSmart Score of 62/100 (C+).
DLTR
Buy59
out of 100
Grade: C
PEP
Buy62
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+17.6%
Fair Value
$151.64
Current Price
$108.80
$42.84 discount
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
Every $100 of equity generates 34 in profit
Every $100 of equity generates 41 in profit
Large-cap with strong market position
Earnings expanding 27.8% YoY
Areas to Watch
6.5% margin — thin
Elevated debt levels
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 : DLTR
The strongest argument for DLTR centers on Return on Equity. PEG of 1.43 suggests the stock is reasonably priced for its growth.
Bull Case : PEP
The strongest argument for PEP centers on Return on Equity, Market Cap, EPS Growth.
Bear Case : DLTR
The primary concerns for DLTR are Profit Margin, Debt/Equity.
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
DLTR carries more volatility with a beta of 0.66 — expect wider price swings.
PEP is growing revenue faster at 8.5% — sustainability is the question.
DLTR generates stronger free cash flow (392M), providing more financial flexibility.
Monitor DISCOUNT STORES industry trends, competitive dynamics, and regulatory changes.
Bottom Line
PEP scores higher overall (62/100 vs 59/100). DLTR offers better value entry with a 17.6% 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.
Dollar Tree Inc
CONSUMER DEFENSIVE · DISCOUNT STORES · USA
Dollar Tree is an American chain of discount variety stores that sells items for $1 or less, headquartered in Chesapeake, Virginia.
Visit Website →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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