WallStSmart

PepsiCo Inc (PEP)vsTAL Education Group (TAL)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

PepsiCo Inc generates 3072% more annual revenue ($95.45B vs $3.01B). TAL leads profitability with a 17.6% profit margin vs 9.2%. PEP appears more attractively valued with a PEG of 1.70. TAL earns a higher WallStSmart Score of 66/100 (B-).

PEP

Buy

63

out of 100

Grade: C+

Growth: 6.0Profit: 8.0Value: 5.3Quality: 4.8
Piotroski: 3/9Altman Z: 2.26

TAL

Strong Buy

66

out of 100

Grade: B-

Growth: 10.0Profit: 6.5Value: 6.7Quality: 6.0
Piotroski: 4/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

PEPUndervalued (+0.2%)

Margin of Safety

+0.2%

Fair Value

$154.83

Current Price

$157.41

$2.58 discount

UndervaluedFair: $154.83Overvalued
TALUndervalued (+88.2%)

Margin of Safety

+88.2%

Fair Value

$101.06

Current Price

$10.89

$90.17 discount

UndervaluedFair: $101.06Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

PEP3 strengths · Avg: 9.3/10
Market CapQuality
$215.17B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
43.9%10/10

Every $100 of equity generates 44 in profit

EPS GrowthGrowth
27.8%8/10

Earnings expanding 27.8% YoY

TAL4 strengths · Avg: 9.0/10
Revenue GrowthGrowth
31.5%10/10

Revenue surging 31.5% year-over-year

EPS GrowthGrowth
536.0%10/10

Earnings expanding 536.0% YoY

P/E RatioValuation
12.1x8/10

Attractively priced relative to earnings

Price/BookValuation
1.7x8/10

Reasonable price relative to book value

Areas to Watch

PEP4 concerns · Avg: 3.3/10
PEG RatioValuation
1.704/10

Expensive relative to growth rate

Price/BookValuation
10.1x4/10

Trading at 10.1x book value

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Free Cash FlowQuality
$-406.00M2/10

Negative free cash flow — burning cash

TAL1 concerns · Avg: 2.0/10
PEG RatioValuation
12.622/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : PEP

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

Bull Case : TAL

The strongest argument for TAL centers on Revenue Growth, EPS Growth, P/E Ratio. Profitability is solid with margins at 17.6% and operating margin at 9.0%. Revenue growth of 31.5% demonstrates continued momentum.

Bear Case : PEP

The primary concerns for PEP are PEG Ratio, Price/Book, Piotroski F-Score.

Bear Case : TAL

The primary concerns for TAL are PEG Ratio.

Key Dynamics to Monitor

PEP profiles as a value stock while TAL is a growth play — different risk/reward profiles.

PEP carries more volatility with a beta of 0.41 — expect wider price swings.

TAL is growing revenue faster at 31.5% — sustainability is the question.

TAL generates stronger free cash flow (816M), providing more financial flexibility.

Bottom Line

TAL scores higher overall (66/100 vs 63/100), backed by strong 17.6% margins and 31.5% revenue growth. 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.

TAL Education Group

CONSUMER DEFENSIVE · EDUCATION & TRAINING SERVICES · China

TAL Education Group offers K-12 afterschool tutoring services in the People's Republic of China. The company is headquartered in Beijing, the People's Republic of China.

Want to dig deeper into these stocks?