PepsiCo Inc (PEP)vsPhilip Morris International Inc (PM)
PEP
PepsiCo Inc
$136.32
-0.24%
CONSUMER DEFENSIVE · Cap: $186.21B
PM
Philip Morris International Inc
$191.06
+0.68%
CONSUMER DEFENSIVE · Cap: $297.79B
Smart Verdict
WallStSmart Research — data-driven comparison
PepsiCo Inc generates 128% more annual revenue ($96.90B vs $42.55B). PM leads profitability with a 25.6% 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).
PEP
Strong Buy71
out of 100
Grade: B
PM
Buy54
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+2.6%
Fair Value
$139.91
Current Price
$136.32
$3.59 discount
Margin of Safety
-67.5%
Fair Value
$114.04
Current Price
$191.06
$77.02 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
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
Mega-cap, among the largest globally
Strong operational efficiency at 40.0%
Conservative balance sheet, low leverage
Keeps 26 of every $100 in revenue as profit
Generating 5.1B in free cash flow
Areas to Watch
Trading at 8.4x book value
Weak financial health signals
Elevated debt levels
Expensive relative to growth rate
Moderate valuation
ROE of 0.0% — below average capital efficiency
Earnings declined 7.5%
Comparative Analysis Report
WallStSmart ResearchBull 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.
Bull Case : PM
The strongest argument for PM centers on Market Cap, Operating Margin, Debt/Equity. Profitability is solid with margins at 25.6% and operating margin at 40.0%. Revenue growth of 10.4% demonstrates continued momentum.
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.
Bear Case : PM
The primary concerns for PM are PEG Ratio, P/E Ratio, Return on Equity.
Key Dynamics to Monitor
PEP profiles as a value stock while PM is a mature play — different risk/reward profiles.
PM carries more volatility with a beta of 0.40 — expect wider price swings.
PM is growing revenue faster at 10.4% — sustainability is the question.
PM generates stronger free cash flow (5.1B), providing more financial flexibility.
Bottom Line
PEP scores higher overall (71/100 vs 54/100). 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.
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.
Philip Morris International Inc
CONSUMER DEFENSIVE · TOBACCO · USA
Philip Morris International Inc. (PMI) is a Swiss-American multinational cigarette and tobacco manufacturing company, with products sold in over 180 countries. The most recognized and best selling product of the company is Marlboro.
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