PepsiCo Inc (PEP)vsThe Travelers Companies Inc (TRV)
PEP
PepsiCo Inc
$151.73
+0.76%
CONSUMER DEFENSIVE · Cap: $205.91B
TRV
The Travelers Companies Inc
$290.59
-0.83%
FINANCIAL SERVICES · Cap: $65.36B
Smart Verdict
WallStSmart Research — data-driven comparison
PepsiCo Inc generates 92% more annual revenue ($93.92B vs $48.83B). TRV leads profitability with a 12.9% profit margin vs 8.8%. TRV appears more attractively valued with a PEG of 2.36. TRV earns a higher WallStSmart Score of 71/100 (B).
PEP
Buy59
out of 100
Grade: C
TRV
Strong Buy71
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+45.9%
Fair Value
$280.33
Current Price
$151.73
$128.60 discount
Margin of Safety
+75.4%
Fair Value
$1213.50
Current Price
$290.59
$922.91 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 43 in profit
Earnings expanding 67.5% YoY
Generating 4.7B in free cash flow
Attractively priced relative to earnings
Large-cap with strong market position
Every $100 of equity generates 21 in profit
Conservative balance sheet, low leverage
Reasonable price relative to book value
Strong operational efficiency at 25.9%
Areas to Watch
Moderate valuation
Trading at 10.2x book value
Weak financial health signals
Expensive relative to growth rate
Expensive relative to growth rate
3.5% revenue growth
Negative free cash flow — burning cash
Distress zone — elevated risk
Comparative Analysis Report
WallStSmart ResearchBull Case : PEP
The strongest argument for PEP centers on Market Cap, Return on Equity, EPS Growth.
Bull Case : TRV
The strongest argument for TRV centers on P/E Ratio, Market Cap, Return on Equity.
Bear Case : PEP
The primary concerns for PEP are P/E Ratio, Price/Book, Piotroski F-Score.
Bear Case : TRV
The primary concerns for TRV are PEG Ratio, Revenue Growth, Free Cash Flow.
Key Dynamics to Monitor
TRV carries more volatility with a beta of 0.50 — expect wider price swings.
PEP is growing revenue faster at 5.6% — sustainability is the question.
Monitor BEVERAGES - NON-ALCOHOLIC industry trends, competitive dynamics, and regulatory changes.
Bottom Line
TRV scores higher overall (71/100 vs 59/100). PEP offers better value entry with a 45.9% margin of safety. 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.
The Travelers Companies Inc
FINANCIAL SERVICES · INSURANCE - PROPERTY & CASUALTY · USA
The Travelers Companies, Inc., commonly known as Travelers, is an American insurance company.
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