PEP vs. WMT: A Head-to-Head Stock Comparison
Here’s a clear look at PEP and WMT, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | PEP | WMT |
|---|---|---|
| Company Name | PepsiCo, Inc. | Walmart Inc. |
| Country | United States | United States |
| GICS Sector | Consumer Staples | Consumer Staples |
| GICS Industry Group | Food, Beverage & Tobacco | Consumer Staples Distribution & Retail |
| GICS Industry | Beverages | Consumer Staples Distribution & Retail |
| GICS Sub-Industry | Soft Drinks & Non-alcoholic Beverages | Consumer Staples Merchandise Retail |
| Market Capitalization | 204.23 billion USD | 1,017.02 billion USD |
| Currency | USD | USD |
| Exchange | NasdaqGS | NasdaqGS |
| Listing Date | June 1, 1972 | August 25, 1972 |
| Security Type | Common Stock | Common Stock |
WMT’s market capitalization (1,017.02 billion USD) is significantly greater than PEP’s (204.23 billion USD), highlighting its more substantial market valuation.
Historical Performance
This chart compares the performance of PEP and WMT by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period. Data is adjusted for dividends and splits.
Historical Performance at a Glance
| Symbol | PEP | WMT |
|---|---|---|
| 5-Day Price Return | -3.63% | -2.45% |
| 13-Week Price Return | -12.36% | -2.74% |
| 26-Week Price Return | 4.05% | 25.59% |
| 52-Week Price Return | 14.54% | 31.92% |
| Month-to-Date Return | -5.73% | -3.29% |
| Year-to-Date Return | 4.10% | 14.52% |
| 10-Day Avg. Volume | 5.53M | 14.94M |
| 3-Month Avg. Volume | 7.32M | 26.30M |
| 3-Month Volatility | 20.26% | 26.09% |
| Beta | 0.39 | 0.65 |
WMT carries a higher beta at 0.65, indicating it’s more sensitive to market moves, while PEP (beta: 0.39) exhibits greater stability.
Profitability
Return on Equity (TTM)
PEP
43.89%
Beverages Industry
- Max
- 43.89%
- Q3
- 25.65%
- Median
- 19.93%
- Q1
- 12.01%
- Min
- -7.30%
In the upper quartile for the Beverages industry, PEP’s Return on Equity of 43.89% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
WMT
23.69%
Consumer Staples Distribution & Retail Industry
- Max
- 36.06%
- Q3
- 23.79%
- Median
- 14.31%
- Q1
- 7.81%
- Min
- -4.97%
WMT’s Return on Equity of 23.69% is on par with the norm for the Consumer Staples Distribution & Retail industry, indicating its profitability relative to shareholder equity is typical for the sector.
Net Profit Margin (TTM)
PEP
9.15%
Beverages Industry
- Max
- 27.80%
- Q3
- 18.46%
- Median
- 11.53%
- Q1
- 8.15%
- Min
- -3.15%
PEP’s Net Profit Margin of 9.15% is aligned with the median group of its peers in the Beverages industry. This indicates its ability to convert revenue into profit is typical for the sector.
WMT
3.07%
Consumer Staples Distribution & Retail Industry
- Max
- 6.61%
- Q3
- 3.57%
- Median
- 2.70%
- Q1
- 1.29%
- Min
- -0.25%
WMT’s Net Profit Margin of 3.07% is aligned with the median group of its peers in the Consumer Staples Distribution & Retail industry. This indicates its ability to convert revenue into profit is typical for the sector.
Operating Profit Margin (TTM)
PEP
12.41%
Beverages Industry
- Max
- 30.01%
- Q3
- 28.39%
- Median
- 20.83%
- Q1
- 12.41%
- Min
- -4.08%
PEP’s Operating Profit Margin of 12.41% is around the midpoint for the Beverages industry, indicating that its efficiency in managing core business operations is typical for the sector.
WMT
4.18%
Consumer Staples Distribution & Retail Industry
- Max
- 8.84%
- Q3
- 5.02%
- Median
- 3.81%
- Q1
- 1.79%
- Min
- 0.03%
WMT’s Operating Profit Margin of 4.18% is around the midpoint for the Consumer Staples Distribution & Retail industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | PEP | WMT |
|---|---|---|
| Return on Equity (TTM) | 43.89% | 23.69% |
| Return on Assets (TTM) | 8.12% | 7.91% |
| Net Profit Margin (TTM) | 9.15% | 3.07% |
| Operating Profit Margin (TTM) | 12.41% | 4.18% |
| Gross Profit Margin (TTM) | 54.38% | 24.93% |
Financial Strength
Current Ratio (MRQ)
PEP
0.90
Beverages Industry
- Max
- 3.70
- Q3
- 2.31
- Median
- 1.16
- Q1
- 0.93
- Min
- 0.54
PEP’s Current Ratio of 0.90 falls into the lower quartile for the Beverages industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
WMT
0.79
Consumer Staples Distribution & Retail Industry
- Max
- 1.93
- Q3
- 1.39
- Median
- 1.14
- Q1
- 0.99
- Min
- 0.75
WMT’s Current Ratio of 0.79 falls into the lower quartile for the Consumer Staples Distribution & Retail industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
Debt-to-Equity Ratio (MRQ)
PEP
2.47
Beverages Industry
- Max
- 2.03
- Q3
- 1.31
- Median
- 0.84
- Q1
- 0.57
- Min
- 0.00
With a Debt-to-Equity Ratio of 2.47, PEP operates with exceptionally high leverage compared to the Beverages industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.
WMT
0.52
Consumer Staples Distribution & Retail Industry
- Max
- 1.46
- Q3
- 1.07
- Median
- 0.52
- Q1
- 0.17
- Min
- 0.00
WMT’s Debt-to-Equity Ratio of 0.52 is typical for the Consumer Staples Distribution & Retail industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
Interest Coverage Ratio (TTM)
PEP
10.17
Beverages Industry
- Max
- 67.13
- Q3
- 50.14
- Median
- 11.78
- Q1
- 7.99
- Min
- -10.77
PEP’s Interest Coverage Ratio of 10.17 is positioned comfortably within the norm for the Beverages industry, indicating a standard and healthy capacity to cover its interest payments.
WMT
13.12
Consumer Staples Distribution & Retail Industry
- Max
- 20.24
- Q3
- 20.19
- Median
- 9.50
- Q1
- 4.09
- Min
- -8.07
WMT’s Interest Coverage Ratio of 13.12 is positioned comfortably within the norm for the Consumer Staples Distribution & Retail industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | PEP | WMT |
|---|---|---|
| Current Ratio (MRQ) | 0.90 | 0.79 |
| Quick Ratio (MRQ) | 0.67 | 0.20 |
| Debt-to-Equity Ratio (MRQ) | 2.47 | 0.52 |
| Interest Coverage Ratio (TTM) | 10.17 | 13.12 |
Growth
Revenue Growth
Revenue Growth at a Glance
| Symbol | PEP | WMT |
|---|---|---|
| Revenue Growth (MRQ vs Prior YoY) | 8.50% | 5.60% |
| Revenue Growth (TTM vs Prior YoY) | 4.29% | 4.73% |
| 3-Year Revenue CAGR | 2.83% | 5.27% |
| 5-Year Revenue CAGR | 5.94% | 4.99% |
EPS Growth
EPS Growth at a Glance
| Symbol | PEP | WMT |
|---|---|---|
| EPS Growth (MRQ vs Prior YoY) | 27.35% | -18.67% |
| EPS Growth (TTM vs Prior YoY) | -6.44% | 13.49% |
| 3-Year EPS CAGR | -2.24% | 24.21% |
| 5-Year EPS CAGR | 3.25% | 11.53% |
Dividend
Dividend Yield (TTM)
PEP
3.78%
Beverages Industry
- Max
- 4.93%
- Q3
- 4.20%
- Median
- 3.27%
- Q1
- 2.61%
- Min
- 0.72%
PEP’s Dividend Yield of 3.78% is consistent with its peers in the Beverages industry, providing a dividend return that is standard for its sector.
WMT
0.72%
Consumer Staples Distribution & Retail Industry
- Max
- 4.10%
- Q3
- 2.23%
- Median
- 0.76%
- Q1
- 0.00%
- Min
- 0.00%
WMT’s Dividend Yield of 0.72% is consistent with its peers in the Consumer Staples Distribution & Retail industry, providing a dividend return that is standard for its sector.
Dividend Payout Ratio (TTM)
PEP
88.42%
Beverages Industry
- Max
- 131.99%
- Q3
- 95.28%
- Median
- 68.23%
- Q1
- 42.43%
- Min
- 0.00%
PEP’s Dividend Payout Ratio of 88.42% is within the typical range for the Beverages industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
WMT
34.29%
Consumer Staples Distribution & Retail Industry
- Max
- 56.48%
- Q3
- 35.92%
- Median
- 25.78%
- Q1
- 0.00%
- Min
- 0.00%
WMT’s Dividend Payout Ratio of 34.29% is within the typical range for the Consumer Staples Distribution & Retail industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
Dividend at a Glance
| Symbol | PEP | WMT |
|---|---|---|
| Dividend Yield (TTM) | 3.78% | 0.72% |
| Dividend Payout Ratio (TTM) | 88.42% | 34.29% |
Valuation
Price-to-Earnings Ratio (TTM)
PEP
23.39
Beverages Industry
- Max
- 24.52
- Q3
- 22.62
- Median
- 19.34
- Q1
- 16.15
- Min
- 14.81
A P/E Ratio of 23.39 places PEP in the upper quartile for the Beverages industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.
WMT
47.50
Consumer Staples Distribution & Retail Industry
- Max
- 51.69
- Q3
- 36.21
- Median
- 20.43
- Q1
- 15.45
- Min
- 10.34
A P/E Ratio of 47.50 places WMT in the upper quartile for the Consumer Staples Distribution & Retail industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.
Price-to-Sales Ratio (TTM)
PEP
2.14
Beverages Industry
- Max
- 3.18
- Q3
- 2.91
- Median
- 2.36
- Q1
- 1.43
- Min
- 0.73
PEP’s P/S Ratio of 2.14 aligns with the market consensus for the Beverages industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
WMT
1.46
Consumer Staples Distribution & Retail Industry
- Max
- 1.54
- Q3
- 0.90
- Median
- 0.47
- Q1
- 0.26
- Min
- 0.09
WMT’s P/S Ratio of 1.46 is in the upper echelon for the Consumer Staples Distribution & Retail industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.
Price-to-Book Ratio (MRQ)
PEP
9.65
Beverages Industry
- Max
- 9.81
- Q3
- 5.47
- Median
- 3.36
- Q1
- 2.48
- Min
- 0.76
PEP’s P/B Ratio of 9.65 is in the upper tier for the Beverages industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.
WMT
9.93
Consumer Staples Distribution & Retail Industry
- Max
- 9.93
- Q3
- 5.69
- Median
- 3.71
- Q1
- 1.64
- Min
- 0.79
WMT’s P/B Ratio of 9.93 is in the upper tier for the Consumer Staples Distribution & Retail industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.
Valuation at a Glance
| Symbol | PEP | WMT |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 23.39 | 47.50 |
| Price-to-Sales Ratio (TTM) | 2.14 | 1.46 |
| Price-to-Book Ratio (MRQ) | 9.65 | 9.93 |
| Price-to-Free Cash Flow Ratio (TTM) | 22.09 | 69.68 |