WallStSmart

PepsiCo Inc (PEP)vsBoston Beer Company Inc (SAM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

PepsiCo Inc generates 4807% more annual revenue ($95.45B vs $1.95B). PEP leads profitability with a 9.2% profit margin vs -3.1%. SAM appears more attractively valued with a PEG of 0.78. PEP earns a higher WallStSmart Score of 62/100 (C+).

PEP

Buy

62

out of 100

Grade: C+

Growth: 6.0Profit: 8.0Value: 4.7Quality: 4.0
Piotroski: 3/9Altman Z: 2.26

SAM

Buy

52

out of 100

Grade: C-

Growth: 4.7Profit: 3.5Value: 7.0Quality: 7.0
Piotroski: 5/9Altman Z: 3.97
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

PEPFair Value (-2.5%)

Margin of Safety

-2.5%

Fair Value

$138.40

Current Price

$141.92

$3.52 premium

UndervaluedFair: $138.40Overvalued
SAMUndervalued (+25.4%)

Margin of Safety

+25.4%

Fair Value

$336.22

Current Price

$164.72

$171.50 discount

UndervaluedFair: $336.22Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

PEP3 strengths · Avg: 9.0/10
Return on EquityProfitability
40.9%10/10

Every $100 of equity generates 41 in profit

Market CapQuality
$194.11B9/10

Large-cap with strong market position

EPS GrowthGrowth
27.8%8/10

Earnings expanding 27.8% YoY

SAM5 strengths · Avg: 8.8/10
Debt/EquityHealth
0.0510/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
3.9710/10

Safe zone — low bankruptcy risk

PEG RatioValuation
0.788/10

Growing faster than its price suggests

Price/BookValuation
2.5x8/10

Reasonable price relative to book value

EPS GrowthGrowth
48.6%8/10

Earnings expanding 48.6% YoY

Areas to Watch

PEP4 concerns · Avg: 3.3/10
PEG RatioValuation
1.524/10

Expensive relative to growth rate

Price/BookValuation
9.1x4/10

Trading at 9.1x book value

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Free Cash FlowQuality
$-406.00M2/10

Negative free cash flow — burning cash

SAM4 concerns · Avg: 2.5/10
Market CapQuality
$1.85B3/10

Smaller company, higher risk/reward

Operating MarginProfitability
5.0%3/10

Operating margin of 5.0%

Return on EquityProfitability
-7.8%2/10

ROE of -7.8% — below average capital efficiency

Revenue GrowthGrowth
-4.4%2/10

Revenue declined 4.4%

Comparative Analysis Report

WallStSmart Research

Bull Case : PEP

The strongest argument for PEP centers on Return on Equity, Market Cap, EPS Growth.

Bull Case : SAM

The strongest argument for SAM centers on Debt/Equity, Altman Z-Score, PEG Ratio. PEG of 0.78 suggests the stock is reasonably priced for its growth.

Bear Case : PEP

The primary concerns for PEP are PEG Ratio, Price/Book, Piotroski F-Score. Debt-to-equity of 2.47 is elevated, increasing financial risk.

Bear Case : SAM

The primary concerns for SAM are Market Cap, Operating Margin, Return on Equity.

Key Dynamics to Monitor

PEP profiles as a value stock while SAM is a turnaround play — different risk/reward profiles.

SAM carries more volatility with a beta of 0.88 — expect wider price swings.

PEP is growing revenue faster at 8.5% — sustainability is the question.

SAM generates stronger free cash flow (-33M), providing more financial flexibility.

Bottom Line

PEP scores higher overall (62/100 vs 52/100). SAM offers better value entry with a 25.4% margin of safety. Both earn "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.

Boston Beer Company Inc

CONSUMER DEFENSIVE · BEVERAGES - BREWERS · USA

The Boston Beer Company, Inc. produces and sells alcoholic beverages primarily in the United States. The company is headquartered in Boston, Massachusetts.

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