PepsiCo Inc (PEP)vsTAL Education Group (TAL)
PEP
PepsiCo Inc
$142.86
+0.45%
CONSUMER DEFENSIVE · Cap: $185.30B
TAL
TAL Education Group
$10.89
+4.31%
CONSUMER DEFENSIVE · Cap: $5.68B
Smart Verdict
WallStSmart Research — data-driven comparison
PepsiCo Inc generates 3121% more annual revenue ($96.90B vs $3.01B). TAL leads profitability with a 17.6% profit margin vs 10.8%. PEP appears more attractively valued with a PEG of 1.46. PEP earns a higher WallStSmart Score of 71/100 (B).
PEP
Strong Buy71
out of 100
Grade: B
TAL
Strong Buy68
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-1.9%
Fair Value
$140.22
Current Price
$142.86
$2.64 premium
Margin of Safety
+89.2%
Fair Value
$110.03
Current Price
$10.89
$99.14 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 47 in profit
Earnings expanding 137.0% YoY
Large-cap with strong market position
Attractively priced relative to earnings
Generating 1.5B in free cash flow
Attractively priced relative to earnings
Revenue surging 31.5% year-over-year
Earnings expanding 536.0% YoY
Conservative balance sheet, low leverage
Reasonable price relative to book value
Areas to Watch
Trading at 9.1x book value
Weak financial health signals
Elevated debt levels
Expensive relative to growth rate
Negative free cash flow — burning cash
Comparative Analysis Report
WallStSmart ResearchBull Case : PEP
The strongest argument for PEP centers on Return on Equity, EPS Growth, Market Cap. PEG of 1.46 suggests the stock is reasonably priced for its growth.
Bull Case : TAL
The strongest argument for TAL centers on P/E Ratio, Revenue Growth, EPS Growth. 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 Price/Book, Piotroski F-Score, Debt/Equity. Debt-to-equity of 2.41 is elevated, increasing financial risk.
Bear Case : TAL
The primary concerns for TAL are PEG Ratio, Free Cash Flow.
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 0.37 — expect wider price swings.
TAL is growing revenue faster at 31.5% — sustainability is the question.
PEP generates stronger free cash flow (1.5B), providing more financial flexibility.
Bottom Line
PEP scores higher overall (71/100 vs 68/100). TAL offers better value entry with a 89.2% margin of safety. 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.
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.
Compare with Other BEVERAGES - NON-ALCOHOLIC Stocks
Want to dig deeper into these stocks?