PepsiCo Inc (PEP)vsWilliams Companies Inc (WMB)
PEP
PepsiCo Inc
$150.59
+0.76%
CONSUMER DEFENSIVE · Cap: $205.91B
WMB
Williams Companies Inc
$74.46
+1.17%
ENERGY · Cap: $88.45B
Smart Verdict
WallStSmart Research — data-driven comparison
PepsiCo Inc generates 694% more annual revenue ($93.92B vs $11.83B). WMB leads profitability with a 22.1% profit margin vs 8.8%. WMB appears more attractively valued with a PEG of 2.47. WMB earns a higher WallStSmart Score of 67/100 (B-).
PEP
Buy59
out of 100
Grade: C
WMB
Strong Buy67
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+45.9%
Fair Value
$280.33
Current Price
$150.59
$129.74 discount
Margin of Safety
+27.3%
Fair Value
$97.81
Current Price
$74.46
$23.35 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
Strong operational efficiency at 41.2%
Earnings expanding 50.8% YoY
Large-cap with strong market position
Keeps 22 of every $100 in revenue as profit
Areas to Watch
Moderate valuation
Trading at 10.1x book value
Weak financial health signals
Expensive relative to growth rate
Expensive relative to growth rate
Premium valuation, high expectations priced in
Weak financial health signals
Negative free cash flow — burning cash
Comparative Analysis Report
WallStSmart ResearchBull Case : PEP
The strongest argument for PEP centers on Market Cap, Return on Equity, EPS Growth.
Bull Case : WMB
The strongest argument for WMB centers on Operating Margin, EPS Growth, Market Cap. Profitability is solid with margins at 22.1% and operating margin at 41.2%.
Bear Case : PEP
The primary concerns for PEP are P/E Ratio, Price/Book, Piotroski F-Score.
Bear Case : WMB
The primary concerns for WMB are PEG Ratio, P/E Ratio, Piotroski F-Score.
Key Dynamics to Monitor
PEP profiles as a value stock while WMB is a mature play — different risk/reward profiles.
WMB carries more volatility with a beta of 0.65 — expect wider price swings.
WMB is growing revenue faster at 8.7% — sustainability is the question.
PEP generates stronger free cash flow (4.7B), providing more financial flexibility.
Bottom Line
WMB scores higher overall (67/100 vs 59/100), backed by strong 22.1% margins. 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.
Williams Companies Inc
ENERGY · OIL & GAS MIDSTREAM · USA
The Williams Companies, Inc., is an American energy company based in Tulsa, Oklahoma. Its core business is natural gas processing and transportation, with additional petroleum and electricity generation assets.
Compare with Other BEVERAGES - NON-ALCOHOLIC Stocks
Want to dig deeper into these stocks?