PepsiCo Inc (PEP)vsConstellation Brands Inc Class A (STZ)
PEP
PepsiCo Inc
$132.63
+0.87%
CONSUMER DEFENSIVE · Cap: $179.19B
STZ
Constellation Brands Inc Class A
$129.80
-0.64%
CONSUMER DEFENSIVE · Cap: $22.23B
Smart Verdict
WallStSmart Research — data-driven comparison
PepsiCo Inc generates 967% more annual revenue ($98.24B vs $9.21B). STZ leads profitability with a 20.9% profit margin vs 11.1%. PEP appears more attractively valued with a PEG of 1.38. STZ earns a higher WallStSmart Score of 78/100 (B+).
PEP
Strong Buy67
out of 100
Grade: B-
STZ
Strong Buy78
out of 100
Grade: B+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+4.1%
Fair Value
$141.64
Current Price
$132.63
$9.01 discount
Intrinsic value data unavailable for STZ.
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
Attractively priced relative to earnings
Strong operational efficiency at 33.6%
Every $100 of equity generates 22 in profit
Keeps 21 of every $100 in revenue as profit
Reasonable price relative to book value
Earnings expanding 25.3% YoY
Areas to Watch
Trading at 8.1x book value
Weak financial health signals
Elevated debt levels
Elevated debt levels
Comparative Analysis Report
WallStSmart ResearchBull Case : PEP
The strongest argument for PEP centers on Return on Equity, Market Cap, P/E Ratio. PEG of 1.38 suggests the stock is reasonably priced for its growth.
Bull Case : STZ
The strongest argument for STZ centers on P/E Ratio, Operating Margin, Return on Equity. Profitability is solid with margins at 20.9% and operating margin at 33.6%.
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 : STZ
The primary concerns for STZ are Debt/Equity.
Key Dynamics to Monitor
PEP profiles as a value stock while STZ is a mature play — different risk/reward profiles.
STZ carries more volatility with a beta of 0.43 — expect wider price swings.
STZ is growing revenue faster at 6.1% — sustainability is the question.
PEP generates stronger free cash flow (4.7B), providing more financial flexibility.
Bottom Line
STZ scores higher overall (78/100 vs 67/100), backed by strong 20.9% margins. Both earn "Strong Buy" and "Strong 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.
Constellation Brands Inc Class A
CONSUMER DEFENSIVE · BEVERAGES - BREWERS · USA
Constellation Brands, Inc., headquartered in Victor, New York, is an American producer and marketer of beer, wine, and spirits.
Visit Website →Compare with Other BEVERAGES - NON-ALCOHOLIC Stocks
Want to dig deeper into these stocks?