Altria Group (MO)vsPepsiCo Inc (PEP)
MO
Altria Group
$74.82
+0.13%
CONSUMER DEFENSIVE · Cap: $121.89B
PEP
PepsiCo Inc
$142.86
+0.45%
CONSUMER DEFENSIVE · Cap: $185.30B
Smart Verdict
WallStSmart Research — data-driven comparison
PepsiCo Inc generates 376% more annual revenue ($96.90B vs $20.38B). MO leads profitability with a 39.5% profit margin vs 10.8%. PEP appears more attractively valued with a PEG of 1.46. PEP earns a higher WallStSmart Score of 71/100 (B).
MO
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
-63.6%
Fair Value
$45.73
Current Price
$74.82
$29.09 premium
Margin of Safety
-1.9%
Fair Value
$140.22
Current Price
$142.86
$2.64 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Keeps 40 of every $100 in revenue as profit
Strong operational efficiency at 62.3%
Earnings expanding 106.3% YoY
Conservative balance sheet, low leverage
Large-cap with strong market position
Attractively priced relative to earnings
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
Expensive relative to growth rate
ROE of 0.0% — below average capital efficiency
Trading at 9.1x book value
Weak financial health signals
Elevated debt levels
Comparative Analysis Report
WallStSmart ResearchBull Case : MO
The strongest argument for MO centers on Profit Margin, Operating Margin, EPS Growth. Profitability is solid with margins at 39.5% and operating margin at 62.3%.
Bull Case : PEP
The strongest argument for PEP centers on Return on Equity, EPS Growth, Market Cap. PEG of 1.46 suggests the stock is reasonably priced for its growth.
Bear Case : MO
The primary concerns for MO are PEG Ratio, Return on 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
MO profiles as a mature stock while PEP is a value play — different risk/reward profiles.
MO carries more volatility with a beta of 0.49 — expect wider price swings.
PEP is growing revenue faster at 6.4% — sustainability is the question.
MO generates stronger free cash flow (2.2B), providing more financial flexibility.
Bottom Line
PEP scores higher overall (71/100 vs 61/100). 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.
Altria Group
CONSUMER DEFENSIVE · TOBACCO · USA
Altria Group, Inc. (previously known as Philip Morris Companies, Inc.) is an American corporation and one of the world's largest producers and marketers of tobacco, cigarettes and related products. It operates worldwide and is headquartered in unincorporated Henrico County, Virginia, just outside the city of Richmond.
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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