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BUD vs PEP

BUD
Anheuser-Busch InBev SA/NV
NEUTRAL
Price
$69.88
Market Cap
$135.98B
Sector
Consumer Defensive
AI Confidence
65%
PEP
PepsiCo, Inc.
NEUTRAL
Price
$154.85
Market Cap
$211.67B
Sector
Consumer Defensive
AI Confidence
85%

Valuation

P/E Ratio
BUD
23.22
PEP
25.81
Forward P/E
BUD
16.74
PEP
16.94
P/B Ratio
BUD
1.69
PEP
10.37
P/S Ratio
BUD
2.32
PEP
2.25
EV/EBITDA
BUD
11.41
PEP
14.05

Profitability

Gross Margin
BUD
55.91%
PEP
54.46%
Operating Margin
BUD
27.79%
PEP
14.07%
Profit Margin
BUD
10.41%
PEP
8.77%
ROE
BUD
--
PEP
42.85%
ROA
BUD
--
PEP
9.05%

Growth

Revenue Growth
BUD
0.6%
PEP
5.6%
Earnings Growth
BUD
-48.6%
PEP
67.5%

Financial Health

Debt/Equity
BUD
0.83
PEP
2.58
Current Ratio
BUD
--
PEP
0.85
Quick Ratio
BUD
--
PEP
0.64

Dividends

Dividend Yield
BUD
1.86%
PEP
3.65%
Payout Ratio
BUD
37.48%
PEP
93.71%

AI Verdict

BUD NEUTRAL

The Advanced Deterministic Scorecard reveals a weak financial health profile with a Piotroski F-Score of just 2/9, indicating significant operational and profitability concerns. Despite this, the stock trades above its Graham Number of $52.90 at $69.88, supported by a bullish analyst recommendation and strong recent price performance. Earnings growth has collapsed year-over-year (-48.6%), yet the company consistently beats estimates, showing some earnings quality. Profit margins and cash flow generation remain solid, but missing key financial health metrics like ROE, ROA, and Altman Z-Score limits confidence in stability. The dividend is sustainable with a 37.5% payout ratio, but insider sentiment and technical trend are weak.

Strengths
Consistent earnings beat streak with 3 out of last 4 quarters exceeding estimates and a 5.93% average surprise
High gross margin of 55.90% reflects strong pricing power and cost control in brewing operations
Solid operating margin at 27.79%, outperforming sector average profit margin of -1.59%
Risks
Critically low Piotroski F-Score of 2/9 signals deteriorating financial health and weak earnings quality
Earnings growth has collapsed YoY (-48.6%) and QoQ (-49.1%), raising sustainability concerns
Missing key financial health data (ROE, ROA, Altman Z-Score, cash/debt figures) creates opacity and risk
PEP NEUTRAL

PepsiCo exhibits a stable but mediocre deterministic health profile with a Piotroski F-Score of 4/9 and a high Debt/Equity ratio of 2.58. While the company maintains an exceptional earnings beat record over 25 quarters and a strong ROE of 42.85%, these are offset by a dangerously high dividend payout ratio of 93.71% and poor liquidity (Current Ratio 0.85). The stock currently trades below its growth-based intrinsic value of $177.0, but bearish insider activity and a 0/100 technical trend suggest limited immediate upside.

Strengths
Exceptional ROE of 42.85% indicating high efficiency in generating profit from equity
Consistent earnings track record with beats in nearly all of the last 25 quarters
Strong gross margins (54.46%) reflecting significant brand pricing power
Risks
Unsustainable dividend payout ratio of 93.71%, leaving little room for error or reinvestment
Weak liquidity position with a current ratio of 0.85 and quick ratio of 0.64
High leverage with a Debt/Equity ratio of 2.58, increasing vulnerability to interest rate shifts

Compare Another Pair

BUD vs PEP: Head-to-Head Comparison

This page compares Anheuser-Busch InBev SA/NV (BUD) and PepsiCo, Inc. (PEP) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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