Keurig Dr Pepper Inc (KDP)vsPepsiCo Inc (PEP)
KDP
Keurig Dr Pepper Inc
$31.43
-1.16%
CONSUMER DEFENSIVE · Cap: $44.29B
PEP
PepsiCo Inc
$134.34
-0.51%
CONSUMER DEFENSIVE · Cap: $186.21B
Smart Verdict
WallStSmart Research — data-driven comparison
PepsiCo Inc generates 382% more annual revenue ($96.90B vs $20.09B). PEP leads profitability with a 10.8% profit margin vs 7.1%. KDP appears more attractively valued with a PEG of 1.01. PEP earns a higher WallStSmart Score of 71/100 (B).
KDP
Buy61
out of 100
Grade: C+
PEP
Strong Buy71
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+63.1%
Fair Value
$80.91
Current Price
$31.43
$49.48 discount
Margin of Safety
+2.6%
Fair Value
$139.91
Current Price
$134.34
$5.57 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Revenue surging 75.6% year-over-year
Reasonable price relative to book value
Every $100 of equity generates 47 in profit
Earnings expanding 137.0% YoY
Large-cap with strong market position
Attractively priced relative to earnings
Generating 1.5B in free cash flow
Areas to Watch
Premium valuation, high expectations priced in
ROE of 5.7% — below average capital efficiency
7.1% margin — thin
Elevated debt levels
Trading at 8.3x book value
Weak financial health signals
Elevated debt levels
Comparative Analysis Report
WallStSmart ResearchBull Case : KDP
The strongest argument for KDP centers on Revenue Growth, Price/Book. Revenue growth of 75.6% demonstrates continued momentum. PEG of 1.01 suggests the stock is reasonably priced for its growth.
Bull Case : PEP
The strongest argument for PEP centers on Return on Equity, EPS Growth, Market Cap. PEG of 1.40 suggests the stock is reasonably priced for its growth.
Bear Case : KDP
The primary concerns for KDP are P/E Ratio, Return on Equity, Profit Margin.
Bear Case : PEP
The primary concerns for PEP are Price/Book, Piotroski F-Score, Debt/Equity. Debt-to-equity of 2.41 is elevated, increasing financial risk.
Key Dynamics to Monitor
KDP profiles as a hypergrowth stock while PEP is a value play — different risk/reward profiles.
KDP carries more volatility with a beta of 0.41 — expect wider price swings.
KDP is growing revenue faster at 75.6% — sustainability is the question.
PEP generates stronger free cash flow (1.5B), providing more financial flexibility.
Bottom Line
PEP scores higher overall (71/100 vs 61/100). KDP offers better value entry with a 63.1% margin of safety. 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.
Keurig Dr Pepper Inc
CONSUMER DEFENSIVE · BEVERAGES - NON-ALCOHOLIC · USA
Keurig Dr Pepper Inc. is a beverage company in the United States and internationally. The company is headquartered in Burlington, Massachusetts.
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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