WallStSmart

Estee Lauder Companies Inc (EL)vsPepsiCo Inc (PEP)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

PepsiCo Inc generates 543% more annual revenue ($95.45B vs $14.83B). PEP leads profitability with a 9.2% profit margin vs -1.7%. EL appears more attractively valued with a PEG of 1.43. PEP earns a higher WallStSmart Score of 62/100 (C+).

EL

Hold

38

out of 100

Grade: F

Growth: 2.7Profit: 4.0Value: 6.3Quality: 4.0
Piotroski: 3/9Altman Z: 1.68

PEP

Buy

62

out of 100

Grade: C+

Growth: 6.0Profit: 8.0Value: 4.7Quality: 4.0
Piotroski: 3/9Altman Z: 2.26
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ELUndervalued (+29.5%)

Margin of Safety

+29.5%

Fair Value

$149.43

Current Price

$83.49

$65.94 discount

UndervaluedFair: $149.43Overvalued
PEPFair Value (-2.5%)

Margin of Safety

-2.5%

Fair Value

$138.40

Current Price

$141.92

$3.52 premium

UndervaluedFair: $138.40Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

EL0 strengths · Avg: 0/10

No standout strengths identified

PEP3 strengths · Avg: 9.0/10
Return on EquityProfitability
40.9%10/10

Every $100 of equity generates 41 in profit

Market CapQuality
$194.11B9/10

Large-cap with strong market position

EPS GrowthGrowth
27.8%8/10

Earnings expanding 27.8% YoY

Areas to Watch

EL4 concerns · Avg: 3.3/10
Revenue GrowthGrowth
4.6%4/10

4.6% revenue growth

Altman Z-ScoreHealth
1.684/10

Distress zone — elevated risk

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Return on EquityProfitability
-6.2%2/10

ROE of -6.2% — below average capital efficiency

PEP4 concerns · Avg: 3.3/10
PEG RatioValuation
1.524/10

Expensive relative to growth rate

Price/BookValuation
9.1x4/10

Trading at 9.1x book value

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Free Cash FlowQuality
$-406.00M2/10

Negative free cash flow — burning cash

Comparative Analysis Report

WallStSmart Research

Bull Case : EL

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 : EL

The primary concerns for EL are Revenue Growth, Altman Z-Score, Piotroski F-Score. Debt-to-equity of 2.33 is elevated, increasing financial risk.

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

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

EL carries more volatility with a beta of 1.25 — expect wider price swings.

PEP is growing revenue faster at 8.5% — sustainability is the question.

EL generates stronger free cash flow (310M), providing more financial flexibility.

Bottom Line

PEP scores higher overall (62/100 vs 38/100). EL offers better value entry with a 29.5% margin of safety. 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.

Estee Lauder Companies Inc

CONSUMER DEFENSIVE · HOUSEHOLD & PERSONAL PRODUCTS · USA

The Estee Lauder Companies Inc. is an American multinational manufacturer and marketer of prestige skincare, makeup, fragrance and hair care products, based in Midtown Manhattan, New York City. The company owns a diverse portfolio of brands, distributed internationally through both digital commerce and retail channels.

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.

Want to dig deeper into these stocks?