WallStSmart

PepsiCo Inc (PEP)vsTootsie Roll Industries Inc (TR)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

PepsiCo Inc generates 13073% more annual revenue ($96.90B vs $735.61M). TR leads profitability with a 13.6% 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 Buy

71

out of 100

Grade: B

Growth: 6.7Profit: 8.0Value: 6.0Quality: 4.0
Piotroski: 3/9Altman Z: 2.26

TR

Hold

39

out of 100

Grade: F

Growth: 3.3Profit: 6.0Value: 3.3Quality: 9.0
Piotroski: 5/9Altman Z: 3.03
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

PEPFair Value (-1.9%)

Margin of Safety

-1.9%

Fair Value

$140.22

Current Price

$139.10

$1.12 premium

UndervaluedFair: $140.22Overvalued
TRFair Value (-1.8%)

Margin of Safety

-1.8%

Fair Value

$39.29

Current Price

$39.61

$0.32 premium

UndervaluedFair: $39.29Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

PEP5 strengths · Avg: 9.0/10
Return on EquityProfitability
47.5%10/10

Every $100 of equity generates 47 in profit

EPS GrowthGrowth
137.0%10/10

Earnings expanding 137.0% YoY

Market CapQuality
$185.30B9/10

Large-cap with strong market position

P/E RatioValuation
17.7x8/10

Attractively priced relative to earnings

Free Cash FlowQuality
$1.50B8/10

Generating 1.5B in free cash flow

TR2 strengths · Avg: 10.0/10
Debt/EquityHealth
0.0110/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
3.0310/10

Safe zone — low bankruptcy risk

Areas to Watch

PEP3 concerns · Avg: 2.7/10
Price/BookValuation
8.9x4/10

Trading at 8.9x book value

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Debt/EquityHealth
2.411/10

Elevated debt levels

TR4 concerns · Avg: 3.0/10
P/E RatioValuation
31.0x4/10

Premium valuation, high expectations priced in

Revenue GrowthGrowth
2.1%4/10

2.1% revenue growth

PEG RatioValuation
3.432/10

Expensive relative to growth rate

EPS GrowthGrowth
-2.1%2/10

Earnings declined 2.1%

Comparative Analysis Report

WallStSmart Research

Bull 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 : TR

The strongest argument for TR centers on Debt/Equity, Altman Z-Score.

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 : TR

The primary concerns for TR are P/E Ratio, Revenue Growth, PEG Ratio.

Key Dynamics to Monitor

TR carries more volatility with a beta of 0.39 — expect wider price swings.

PEP is growing revenue faster at 6.4% — sustainability is the question.

PEP generates stronger free cash flow (1.5B), providing more financial flexibility.

Monitor BEVERAGES - NON-ALCOHOLIC industry trends, competitive dynamics, and regulatory changes.

Bottom Line

PEP scores higher overall (71/100 vs 39/100). Both earn "Strong Buy" and "Hold" 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.

Tootsie Roll Industries Inc

CONSUMER DEFENSIVE · CONFECTIONERS · USA

Tootsie Roll Industries, Inc., manufactures and sells confectionery products primarily in the United States, Canada, Mexico, and internationally. The company is headquartered in Chicago, Illinois.

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