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PEP vs PG

PEP
PepsiCo, Inc.
NEUTRAL
Price
$154.85
Market Cap
$211.67B
Sector
Consumer Defensive
AI Confidence
85%
PG
The Procter & Gamble Company
NEUTRAL
Price
$143.66
Market Cap
$335.7B
Sector
Consumer Defensive
AI Confidence
85%

Valuation

P/E Ratio
PEP
25.81
PG
21.28
Forward P/E
PEP
16.94
PG
19.63
P/B Ratio
PEP
10.37
PG
6.39
P/S Ratio
PEP
2.25
PG
3.94
EV/EBITDA
PEP
14.05
PG
14.64

Profitability

Gross Margin
PEP
54.46%
PG
51.19%
Operating Margin
PEP
14.07%
PG
26.3%
Profit Margin
PEP
8.77%
PG
19.3%
ROE
PEP
42.85%
PG
31.56%
ROA
PEP
9.05%
PG
10.9%

Growth

Revenue Growth
PEP
5.6%
PG
1.5%
Earnings Growth
PEP
67.5%
PG
-5.4%

Financial Health

Debt/Equity
PEP
2.58
PG
0.69
Current Ratio
PEP
0.85
PG
0.72
Quick Ratio
PEP
0.64
PG
0.47

Dividends

Dividend Yield
PEP
3.65%
PG
2.93%
Payout Ratio
PEP
93.71%
PG
61.88%

AI Verdict

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
PG NEUTRAL

PG shows neutral fundamentals based on deterministic rules. Financial strength is strong (F-Score 6/9). Mixed signals with both opportunities and risks present.

Strengths
Strong ROE of 31.6%
Risks
Premium vs Graham Number ($58.45)

Compare Another Pair

PEP vs PG: Head-to-Head Comparison

This page compares PepsiCo, Inc. (PEP) and The Procter & Gamble Company (PG) 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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