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PEP vs WMT

PEP
PepsiCo, Inc.
NEUTRAL
Price
$154.85
Market Cap
$211.67B
Sector
Consumer Defensive
AI Confidence
85%
WMT
Walmart Inc.
BEARISH
Price
$124.57
Market Cap
$993.12B
Sector
Consumer Defensive
AI Confidence
75%

Valuation

P/E Ratio
PEP
25.81
WMT
45.63
Forward P/E
PEP
16.94
WMT
37.93
P/B Ratio
PEP
10.37
WMT
9.96
P/S Ratio
PEP
2.25
WMT
1.39
EV/EBITDA
PEP
14.05
WMT
23.96

Profitability

Gross Margin
PEP
54.46%
WMT
24.93%
Operating Margin
PEP
14.07%
WMT
4.57%
Profit Margin
PEP
8.77%
WMT
3.07%
ROE
PEP
42.85%
WMT
21.85%
ROA
PEP
9.05%
WMT
6.83%

Growth

Revenue Growth
PEP
5.6%
WMT
5.6%
Earnings Growth
PEP
67.5%
WMT
-19.0%

Financial Health

Debt/Equity
PEP
2.58
WMT
0.64
Current Ratio
PEP
0.85
WMT
0.79
Quick Ratio
PEP
0.64
WMT
0.2

Dividends

Dividend Yield
PEP
3.65%
WMT
0.8%
Payout Ratio
PEP
93.71%
WMT
34.43%

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
WMT BEARISH

WMT shows bearish fundamentals based on deterministic rules. Financial strength is stable (F-Score 4/9). Concerns include weak profitability or high valuation.

Strengths
Strong ROE of 21.8%
Risks
High valuation with P/E of 45.6
Premium vs Graham Number ($27.71)
Low profit margin of 3.1%

Compare Another Pair

PEP vs WMT: Head-to-Head Comparison

This page compares PepsiCo, Inc. (PEP) and Walmart Inc. (WMT) 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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