WallStSmart

Grocery Outlet Holding Corp (GO)vsPepsiCo Inc (PEP)

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Smart Verdict

WallStSmart Research — data-driven comparison

PepsiCo Inc generates 1943% more annual revenue ($96.90B vs $4.74B). PEP leads profitability with a 10.8% profit margin vs -8.0%. PEP earns a higher WallStSmart Score of 71/100 (B).

GO

Hold

43

out of 100

Grade: D

Growth: 5.3Profit: 3.0Value: 6.7Quality: 4.5
Piotroski: 4/9Altman Z: 1.69

PEP

Strong Buy

71

out of 100

Grade: B

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

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

GOUndervalued (+58.2%)

Margin of Safety

+58.2%

Fair Value

$23.43

Current Price

$12.87

$10.56 discount

UndervaluedFair: $23.43Overvalued
PEPUndervalued (+8.8%)

Margin of Safety

+8.8%

Fair Value

$139.51

Current Price

$128.38

$11.13 discount

UndervaluedFair: $139.51Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

GO1 strengths · Avg: 8.0/10
Price/BookValuation
1.6x8/10

Reasonable price relative to book value

PEP5 strengths · Avg: 9.0/10
Return on EquityProfitability
49.0%10/10

Every $100 of equity generates 49 in profit

EPS GrowthGrowth
137.0%10/10

Earnings expanding 137.0% YoY

Market CapQuality
$171.72B9/10

Large-cap with strong market position

P/E RatioValuation
16.5x8/10

Attractively priced relative to earnings

Free Cash FlowQuality
$4.67B8/10

Generating 4.7B in free cash flow

Areas to Watch

GO4 concerns · Avg: 3.5/10
Revenue GrowthGrowth
1.1%4/10

1.1% revenue growth

Altman Z-ScoreHealth
1.694/10

Distress zone — elevated risk

Market CapQuality
$1.13B3/10

Smaller company, higher risk/reward

Operating MarginProfitability
1.8%3/10

Operating margin of 1.8%

PEP2 concerns · Avg: 2.0/10
Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Debt/EquityHealth
2.331/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

Bull Case : GO

The strongest argument for GO centers on Price/Book.

Bull Case : PEP

The strongest argument for PEP centers on Return on Equity, EPS Growth, Market Cap. PEG of 1.38 suggests the stock is reasonably priced for its growth.

Bear Case : GO

The primary concerns for GO are Revenue Growth, Altman Z-Score, Market Cap. Debt-to-equity of 2.27 is elevated, increasing financial risk.

Bear Case : PEP

The primary concerns for PEP are Piotroski F-Score, Debt/Equity. Debt-to-equity of 2.33 is elevated, increasing financial risk.

Key Dynamics to Monitor

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

GO carries more volatility with a beta of 0.67 — expect wider price swings.

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

PEP generates stronger free cash flow (4.7B), providing more financial flexibility.

Bottom Line

PEP scores higher overall (71/100 vs 43/100). GO offers better value entry with a 58.2% margin of safety. 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.

Grocery Outlet Holding Corp

CONSUMER DEFENSIVE · GROCERY STORES · USA

Grocery Outlet Holding Corp. The company is headquartered in Emeryville, California.

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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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