The Coca-Cola Company (KO)vsPepsiCo Inc (PEP)
KO
The Coca-Cola Company
$78.58
-0.23%
CONSUMER DEFENSIVE · Cap: $336.45B
PEP
PepsiCo Inc
$157.41
-1.79%
CONSUMER DEFENSIVE · Cap: $212.27B
Smart Verdict
WallStSmart Research — data-driven comparison
PepsiCo Inc generates 94% more annual revenue ($95.45B vs $49.28B). KO leads profitability with a 27.8% profit margin vs 9.2%. PEP appears more attractively valued with a PEG of 1.68. KO earns a higher WallStSmart Score of 65/100 (B-).
KO
Strong Buy65
out of 100
Grade: B-
PEP
Buy63
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-21.9%
Fair Value
$64.15
Current Price
$78.58
$14.43 premium
Margin of Safety
-1.7%
Fair Value
$154.83
Current Price
$157.41
$2.58 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 43 in profit
Strong operational efficiency at 35.1%
Keeps 28 of every $100 in revenue as profit
Generating 1.8B in free cash flow
Mega-cap, among the largest globally
Every $100 of equity generates 44 in profit
Earnings expanding 27.8% YoY
Areas to Watch
Trading at 10.0x book value
Elevated debt levels
Expensive relative to growth rate
Expensive relative to growth rate
Trading at 10.1x book value
Weak financial health signals
Negative free cash flow — burning cash
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 27.8% and operating margin at 35.1%. Revenue growth of 12.1% demonstrates continued momentum.
Bull Case : PEP
The strongest argument for PEP centers on Market Cap, Return on Equity, EPS Growth.
Bear Case : KO
The primary concerns for KO are Price/Book, Debt/Equity, PEG Ratio.
Bear Case : PEP
The primary concerns for PEP are PEG Ratio, Price/Book, Piotroski F-Score.
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 0.41 — expect wider price swings.
KO is growing revenue faster at 12.1% — sustainability is the question.
KO generates stronger free cash flow (1.8B), providing more financial flexibility.
Bottom Line
KO scores higher overall (65/100 vs 63/100), backed by strong 27.8% margins and 12.1% 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.
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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