Verdict: Side-by-side breakdown using the Bull Rankings model. PEP scored 65.5, STZ scored 54.5 — PEP leads.
Compare another set
PEP
PepsiCo, Inc.
Beverages - Non-Alcoholic · Quality-Growth
65.5
$125.97 · $171.7B
fundamentals as of
Score gap
11.0
PEP leads
STZ
Constellation Brands, Inc.
Beverages - Brewers · Quality-Growth
54.5
$122.64 · $20.8B
fundamentals as of
At a glance · who leads each dimension, on the model's own rules
CheapestSTZ11.0x
Fastest growthPEP+6.4%
Strongest balance sheetSTZ1.16
Highest qualityPEP78 / 100
Largest discount to fair valueSTZ-19%
Side by side · every name on one set of axes
Growth against the P/E multiple. Up and to the right is cheaper and faster — the quality-growth idea in one picture. Points beyond the axis are pinned to the edge and marked off-scale rather than allowed to compress everything else.
The model, pillar by pillar (0–100 each)
PEP
stronger →← stronger
STZ
78
Qualityreturns · margins · balance sheet
73
56
Growthrevenue & earnings expansion
27
64
Valuevaluation vs sector peers
83
PEP is stronger on 2 of 3 pillars.
Fundamentals, head-to-head
PEP
STZ
$10.5bA-
FCF
$1.8bC+
+6.4%C+
Rev
-4.3%D+
2.31C
D/E
1.16C+
15.8xB+
P/E
11.0xA
1.31B
PEG
1.57C+
Winner per row is the stronger grade; where grades tie, the better figure breaks it. A true tie or a missing value shows no highlight.
Valuation · DCF cross-check
PEP
STZ
5% above
Price vs fair valuelower is cheaper
19% below
~6%/yr
Growth the price impliesyr-1 FCF growth, fading to 4% · lower = less priced in
~-3%/yr
-8%
1-yr DCF upside
+28%
-5%
5-yr DCF upside
+23%
-1%
10-yr DCF upside
+17%
The DCF is a cross-check on intrinsic value, separate from the quality-growth score above.
Model signals
PEP
Why this score
Durable high returns
STZ
No notable signals flagged.
The companies
PEPPepsiCo, Inc.
Beverages - Non-Alcoholic · $125.97
Why now
Beverages - Non-Alcoholic · market cap $171.7b. Down 27% from 52-week high of $171.48 — deep drawdown territory. 22 sell-side analysts rate this a Hold with a mean 1-yr target of $143.86 (implying +14% upside).
Moat
ROE 49% — top-decile capital efficiency. Either pricing leverage, low capital intensity, or aggressive buybacks; the durability story depends on which. FCF converts 96% of net income — earnings translate cleanly into cash. $171.7b market cap gives the company enough scale to absorb fixed costs that subscale competitors can't, without yet being so large that growth has to come from acquisition.
Risk
D/E 2.31 is elevated — limits strategic flexibility and raises refinancing exposure if rates stay higher for longer. Dividend payout 75% of earnings on a 4.6% yield — distribution coverage is thin; one earnings stumble could force a dividend cut.
STZConstellation Brands, Inc.
Beverages - Brewers · $122.64 · beta 0.43
Why now
Beverages - Brewers · market cap $20.8b. Down 27% from 52-week high of $168.60 — deep drawdown territory. 23 sell-side analysts rate this a Buy with a mean 1-yr target of $151.74 (implying +24% upside).
Moat
Net margin 21% sits well above the S&P median (~11%) — suggests structural pricing advantage or cost discipline competitors can't quickly close. ROE 22% is above 15% — the equity base is compounding at a rate the market struggles to discount accurately. FCF converts 96% of net income — earnings translate cleanly into cash.
Risk
Value re-rating depends on a catalyst. Without one — analyst day, divestiture, margin recovery, capital return — the stock can stay cheap on these multiples for years.
Verdict — model-derived comparison
Generating verdict… typically 5–10 seconds
Not investment advice. The Bull Rankings publishes a quantitative ranking model and accompanying analysis for general informational purposes only. Nothing on this page is a recommendation to buy, sell, or hold any security; nothing is personalized to your circumstances, risk tolerance, or tax situation. Investing carries the risk of loss — invest at your own risk and consider consulting a licensed financial professional before acting on anything you read here. See terms and methodology for full disclosures.
Where PEP and STZ diverge
On the headline score the gap is 11.0 points in favor of PEP. They get there differently, though — each leads on a different pillar, so the better pick depends on which you weight.
GrowthPEP 56.1 · STZ 26.8PEP +29.3
ValuePEP 64.1 · STZ 82.5STZ +18.4
QualityPEP 78.2 · STZ 73.2PEP +5.0
Pillars run 0–100. Value is judged against each company's own sector, so a Value score is a statement about a company relative to its own industry rather than to the other name here. A wide Value gap usually means the market already prices the difference in quality or growth — which is the trade-off this comparison comes down to.
Common questions
Is PEP or STZ the better stock?
PEP scores higher: PEP 65.5, STZ 54.5 out of 100 on the Bull Rankings quality-growth score, which blends business quality, growth and valuation into one number. A higher score means a stronger business at a more reasonable price — it is not a price target or a recommendation.
Where do PEP and STZ differ most?
The widest gap is growth, where PEP leads by 29 points on the 0–100 pillar scale. Neither name sweeps: they trade the lead across the three pillars, so the comparison is a trade-off rather than one being better on every measure.
How are PEP and STZ scored?
Each carries the same 0–100 quality-growth score used everywhere on the site, built from three pillars — quality (profitability and returns on capital), growth (revenue and earnings), and value (what you pay for them) — combined as a geometric mean, so a weak pillar cannot be papered over by a strong one.
How current is this comparison?
The whole universe is re-scored every trading day after the US market close, so the scores and fundamentals here reflect the latest published edition.