PepsiCo Inc (PEP)vsPriceSmart Inc (PSMT)
PEP
PepsiCo Inc
$141.34
-0.96%
CONSUMER DEFENSIVE · Cap: $187.16B
PSMT
PriceSmart Inc
$162.46
-0.06%
CONSUMER DEFENSIVE · Cap: $5.11B
Smart Verdict
WallStSmart Research — data-driven comparison
PepsiCo Inc generates 1572% more annual revenue ($98.24B vs $5.88B). PEP leads profitability with a 11.1% profit margin vs 2.8%. PEP appears more attractively valued with a PEG of 1.47. PEP earns a higher WallStSmart Score of 67/100 (B-).
PEP
Strong Buy67
out of 100
Grade: B-
PSMT
Buy56
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+0.1%
Fair Value
$141.53
Current Price
$141.34
$0.19 discount
Margin of Safety
-15.8%
Fair Value
$143.06
Current Price
$162.46
$19.40 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 49 in profit
Large-cap with strong market position
Attractively priced relative to earnings
Generating 4.7B in free cash flow
Conservative balance sheet, low leverage
Areas to Watch
Trading at 8.6x book value
Weak financial health signals
Elevated debt levels
Expensive relative to growth rate
Premium valuation, high expectations priced in
2.8% margin — thin
Operating margin of 3.9%
Comparative Analysis Report
WallStSmart ResearchBull Case : PEP
The strongest argument for PEP centers on Return on Equity, Market Cap, P/E Ratio. PEG of 1.47 suggests the stock is reasonably priced for its growth.
Bull Case : PSMT
The strongest argument for PSMT centers on Debt/Equity. Revenue growth of 13.9% demonstrates continued momentum.
Bear Case : PEP
The primary concerns for PEP are Price/Book, Piotroski F-Score, Debt/Equity. Debt-to-equity of 2.33 is elevated, increasing financial risk.
Bear Case : PSMT
The primary concerns for PSMT are PEG Ratio, P/E Ratio, Profit Margin. Thin 2.8% margins leave little buffer for downturns.
Key Dynamics to Monitor
PSMT carries more volatility with a beta of 0.74 — expect wider price swings.
PSMT is growing revenue faster at 13.9% — sustainability is the question.
PEP generates stronger free cash flow (4.7B), providing more financial flexibility.
Monitor BEVERAGES - NON-ALCOHOLIC industry trends, competitive dynamics, and regulatory changes.
Bottom Line
PEP scores higher overall (67/100 vs 56/100). 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.
PriceSmart Inc
CONSUMER DEFENSIVE · DISCOUNT STORES · USA
PriceSmart, Inc. owns and operates American-style membership shopping warehouse clubs in Central America, the Caribbean and Colombia. The company is headquartered in San Diego, California.
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