The Coca-Cola Company (KO)vsPepsiCo Inc (PEP)
KO
The Coca-Cola Company
$88.07
+0.22%
CONSUMER DEFENSIVE · Cap: $379.87B
PEP
PepsiCo Inc
$134.34
-0.51%
CONSUMER DEFENSIVE · Cap: $186.21B
Smart Verdict
WallStSmart Research — data-driven comparison
PepsiCo Inc generates 93% more annual revenue ($96.90B vs $50.13B). KO leads profitability with a 28.6% profit margin vs 10.8%. PEP appears more attractively valued with a PEG of 1.40. PEP earns a higher WallStSmart Score of 71/100 (B).
KO
Buy63
out of 100
Grade: C+
PEP
Strong Buy71
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-39.6%
Fair Value
$63.08
Current Price
$88.06
$24.98 premium
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
Mega-cap, among the largest globally
Every $100 of equity generates 40 in profit
Strong operational efficiency at 34.9%
Keeps 29 of every $100 in revenue as profit
Generating 5.1B in free cash flow
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
Moderate valuation
Trading at 10.5x book value
Elevated debt levels
Expensive relative to growth rate
Trading at 8.3x book value
Weak financial health signals
Elevated debt levels
Comparative Analysis Report
WallStSmart ResearchBull Case : KO
The strongest argument for KO centers on Market Cap, Return on Equity, Operating Margin. Profitability is solid with margins at 28.6% and operating margin at 34.9%.
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 : KO
The primary concerns for KO are P/E Ratio, Price/Book, Debt/Equity.
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
KO profiles as a mature 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.
KO is growing revenue faster at 6.7% — sustainability is the question.
KO generates stronger free cash flow (5.1B), providing more financial flexibility.
Bottom Line
PEP scores higher overall (71/100 vs 63/100). 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 Coca-Cola Company
CONSUMER DEFENSIVE · BEVERAGES - NON-ALCOHOLIC · USA
The Coca-Cola Company is an American multinational beverage corporation incorporated under Delaware's General Corporation Law and headquartered in Atlanta, Georgia. The Coca-Cola Company has interests in the manufacturing, retailing, and marketing of nonalcoholic beverage concentrates and syrups.
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.
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