PepsiCo Inc (PEP)vsAT&T Inc. (T)
PEP
PepsiCo Inc
$154.62
-1.07%
CONSUMER DEFENSIVE · Cap: $213.64B
T
AT&T Inc.
$25.16
-0.40%
COMMUNICATION SERVICES · Cap: $175.52B
Smart Verdict
WallStSmart Research — data-driven comparison
AT&T Inc. generates 33% more annual revenue ($126.53B vs $95.45B). T leads profitability with a 16.9% profit margin vs 9.2%. PEP appears more attractively valued with a PEG of 1.68. T earns a higher WallStSmart Score of 64/100 (C+).
PEP
Buy63
out of 100
Grade: C+
T
Buy64
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-1.0%
Fair Value
$154.81
Current Price
$154.62
$0.19 premium
Margin of Safety
+21.5%
Fair Value
$32.17
Current Price
$25.16
$7.01 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 44 in profit
Earnings expanding 27.8% YoY
Attractively priced relative to earnings
Large-cap with strong market position
Reasonable price relative to book value
Strong operational efficiency at 22.7%
Generating 2.7B in free cash flow
Areas to Watch
Expensive relative to growth rate
Trading at 9.9x book value
Weak financial health signals
Negative free cash flow — burning cash
Expensive relative to growth rate
2.9% revenue growth
Earnings declined 11.3%
Comparative Analysis Report
WallStSmart ResearchBull Case : PEP
The strongest argument for PEP centers on Market Cap, Return on Equity, EPS Growth.
Bull Case : T
The strongest argument for T centers on P/E Ratio, Market Cap, Price/Book. Profitability is solid with margins at 16.9% and operating margin at 22.7%.
Bear Case : PEP
The primary concerns for PEP are PEG Ratio, Price/Book, Piotroski F-Score.
Bear Case : T
The primary concerns for T are PEG Ratio, Revenue Growth, EPS Growth.
Key Dynamics to Monitor
T carries more volatility with a beta of 0.42 — expect wider price swings.
PEP is growing revenue faster at 8.5% — sustainability is the question.
T generates stronger free cash flow (2.7B), providing more financial flexibility.
Monitor BEVERAGES - NON-ALCOHOLIC industry trends, competitive dynamics, and regulatory changes.
Bottom Line
T scores higher overall (64/100 vs 63/100), backed by strong 16.9% margins. 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.
AT&T Inc.
COMMUNICATION SERVICES · TELECOM SERVICES · USA
AT&T Inc. is an American multinational conglomerate holding company, Delaware-registered but headquartered at Whitacre Tower in Downtown Dallas, Texas. It is the world largest telecommunications company, and the second largest provider of mobile telephone services.
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