The Kraft Heinz Company (KHC)vsPepsiCo Inc (PEP)
KHC
The Kraft Heinz Company
$22.72
-3.11%
CONSUMER DEFENSIVE · Cap: $28.97B
PEP
PepsiCo Inc
$126.72
-1.53%
CONSUMER DEFENSIVE · Cap: $177.83B
Smart Verdict
WallStSmart Research — data-driven comparison
PepsiCo Inc generates 289% more annual revenue ($96.90B vs $24.90B). PEP leads profitability with a 10.8% profit margin vs -13.6%. KHC appears more attractively valued with a PEG of 0.99. PEP earns a higher WallStSmart Score of 71/100 (B).
KHC
Buy57
out of 100
Grade: C
PEP
Strong Buy71
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+14.5%
Fair Value
$29.23
Current Price
$22.72
$6.51 discount
Margin of Safety
+9.3%
Fair Value
$139.67
Current Price
$126.72
$12.95 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Growing faster than its price suggests
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
ROE of -9.4% — below average capital efficiency
Revenue declined 1.4%
Distress zone — elevated risk
Currently unprofitable
Weak financial health signals
Elevated debt levels
Comparative Analysis Report
WallStSmart ResearchBull Case : KHC
The strongest argument for KHC centers on Price/Book, PEG Ratio. PEG of 0.99 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 1.34 suggests the stock is reasonably priced for its growth.
Bear Case : KHC
The primary concerns for KHC are Return on Equity, Revenue Growth, Altman Z-Score.
Bear Case : PEP
The primary concerns for PEP are Piotroski F-Score, Debt/Equity. Debt-to-equity of 2.41 is elevated, increasing financial risk.
Key Dynamics to Monitor
KHC profiles as a turnaround stock while PEP is a value play — different risk/reward profiles.
PEP carries more volatility with a beta of 0.36 — expect wider price swings.
PEP is growing revenue faster at 6.4% — 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 57/100). 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.
The Kraft Heinz Company
CONSUMER DEFENSIVE · PACKAGED FOODS · USA
The Kraft Heinz Company (KHC), commonly known as Kraft Heinz, is an American food company formed by the merger of Kraft Foods and Heinz, co-headquartered in Chicago, Illinois, and Pittsburgh, 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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