Hershey Co (HSY)vsPepsiCo Inc (PEP)
HSY
Hershey Co
$186.98
-1.75%
CONSUMER DEFENSIVE · Cap: $37.72B
PEP
PepsiCo Inc
$149.12
+0.88%
CONSUMER DEFENSIVE · Cap: $204.04B
Smart Verdict
WallStSmart Research — data-driven comparison
PepsiCo Inc generates 696% more annual revenue ($95.45B vs $11.99B). PEP leads profitability with a 9.2% profit margin vs 9.1%. HSY appears more attractively valued with a PEG of 1.08. HSY earns a higher WallStSmart Score of 69/100 (B-).
HSY
Strong Buy69
out of 100
Grade: B-
PEP
Buy63
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-12.1%
Fair Value
$206.02
Current Price
$186.98
$19.04 premium
Margin of Safety
+3.6%
Fair Value
$154.78
Current Price
$149.12
$5.66 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Earnings expanding 93.6% YoY
Every $100 of equity generates 23 in profit
Strong operational efficiency at 21.3%
Mega-cap, among the largest globally
Every $100 of equity generates 44 in profit
Earnings expanding 27.8% YoY
Areas to Watch
Premium valuation, high expectations priced in
Trading at 8.0x book value
Weak financial health signals
Expensive relative to growth rate
Trading at 9.5x book value
Weak financial health signals
Negative free cash flow — burning cash
Comparative Analysis Report
WallStSmart ResearchBull Case : HSY
The strongest argument for HSY centers on EPS Growth, Return on Equity, Operating Margin. Revenue growth of 10.6% demonstrates continued momentum. PEG of 1.08 suggests the stock is reasonably priced for its growth.
Bull Case : PEP
The strongest argument for PEP centers on Market Cap, Return on Equity, EPS Growth.
Bear Case : HSY
The primary concerns for HSY are P/E Ratio, Price/Book, Piotroski F-Score.
Bear Case : PEP
The primary concerns for PEP are PEG Ratio, Price/Book, Piotroski F-Score.
Key Dynamics to Monitor
PEP carries more volatility with a beta of 0.39 — expect wider price swings.
HSY is growing revenue faster at 10.6% — sustainability is the question.
HSY generates stronger free cash flow (354M), providing more financial flexibility.
Monitor CONFECTIONERS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
HSY scores higher overall (69/100 vs 63/100) and 10.6% revenue growth. Both earn "Strong 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.
Hershey Co
CONSUMER DEFENSIVE · CONFECTIONERS · USA
The Hershey Company, commonly known as Hershey's, is an American multinational company and one of the largest chocolate manufacturers in the world. It also manufactures baked products, such as cookies and cakes, and sells beverages like milkshakes, and many more that are produced globally. Its headquarters are in Hershey, Pennsylvania.
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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