The Home Depot, Inc. (HD) vs PepsiCo, Inc. (PEP) Stock Comparison

Compare Stocks › HD vs PEP

The Home Depot, Inc.

$328.21

PEP

PepsiCo, Inc.

$152.74

Rewards

★The Home Depot, Inc. has maintained ROIC above 15% for 4 consecutive years, indicating a durable competitive advantage.
★The Home Depot, Inc. scores 87/100 on the Economic Moat Score (Wide Moat), with margin stability as the strongest competitive dimension.
★Dividend yield of 2.84% with a consistent or growing payout over the past 4 years.

PEP

★PepsiCo, Inc. has maintained ROIC above 15% for 4 consecutive years, indicating a durable competitive advantage.
★PepsiCo, Inc. scores 88/100 on the Economic Moat Score (Wide Moat), with revenue predictability as the strongest competitive dimension.
★Free cash flow has grown at a 11.0% CAGR over the past 4 years, demonstrating strong earnings power growth.

Risks

⚠FCF yield of 2.6% is below 3%, meaning the market is pricing in substantial future growth to justify the current price.
⚠High leverage (5.10x debt/equity) combined with thin interest coverage (-1.0x) poses financial risk.
⚠Insiders have sold $2.6M worth of stock in the past 3 months — significant insider liquidation.

PEP

⚠High leverage (2.58x debt/equity) combined with thin interest coverage (-1.0x) poses financial risk.
⚠Insiders have sold $4.7M worth of stock in the past 3 months — significant insider liquidation.

Key Valuation Metrics

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PEP

Valuation

$8.62B

Free Cash Flow

$8.23B

2.64%

FCF Yield

3.94%

23.05

Trailing P/E

25.46

20.12

Forward P/E

16.73

Quality & Moat

16.77%

ROIC

14.19%

110.48%

ROE

40.10%

33.32%

Gross Margin

54.46%

N/A

PEG Ratio

0.38

Balance Sheet Safety

5.10

Debt / Equity

2.58

N/A

Interest Coverage

N/A

2.56

Net Debt / EBITDA

2.39

2.84%

Dividend Yield

3.73%

HD: 3Ties: 2PEP: 6

HDPEP

Historical Fundamentals

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Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation.

PEP

Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation.

$1 Retained Earnings Test

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$0.69

created per $1 retained over 3 years

Mediocre Allocator

Σ Retained

$21.95B

Δ Market Cap

+$15.12B

Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer

PEP

$-9.83

created per $1 retained over 3 years

Market Cap Declined

Σ Retained

$5.34B

Δ Market Cap

$-52.53B

Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer

Discounted Cash Flow (DCF) Analysis

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155.8% Overvalued

Price is 155.8% above estimated fair value

Current Price: $328.21

Strongly undervalued

Strongly overvalued

Fair Value: $128.33

Strongly undervalued

Undervalued

Fairly valued

Overvalued

Strongly overvalued

PEP

81.1% Overvalued

Price is 81.1% above estimated fair value

Current Price: $152.74

Strongly undervalued

Fairly valued

Strongly overvalued

Fair Value: $84.35

Strongly undervalued

Undervalued

Fairly valued

Overvalued

Strongly overvalued

Reverse DCF — Market-Implied Growth

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What growth rate is the market pricing in at $328?

+18.9%

Market-Implied FCF Growth Rate

Market pricing in significantly higher growth than history — aggressive.

PEP

What growth rate is the market pricing in at $153?

+13.5%

Market-Implied Owner Earnings Growth

Standard FCF implies +13.5%

The market implies +13.5% Owner Earnings growth, above historical trends.

Standard FCF implies a demanding +13.5%, reflecting heavy growth investment.

Economic Moat Score

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87/100

Wide Moat

70+ Wide · 40-69 Narrow · <40 None

Wide moat with strength across all dimensions. Margin Stability is the standout factor.

Composite score measuring competitive advantage durability across four dimensions: returns above cost of capital, pricing power stability, revenue predictability, and capital efficiency. Based on 5 years of fundamental data.

PEP

88/100

Wide Moat

70+ Wide · 40-69 Narrow · <40 None

Wide moat with strength across all dimensions. Revenue Predictability is the standout factor.

Forensic Accounting

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-1.89

Possible Manipulator

Above -1.78 = likely manipulator · -2.22 to -1.78 = grey zone

M-Score Trend

Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.

PEP

-2.57

Unlikely Manipulator

Above -1.78 = likely manipulator · -2.22 to -1.78 = grey zone

M-Score Trend

Ownership Breakdown

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Insiders 0.1%Institutions 74.6%Retail & Other 25.4%

No. of Institutional Holders5,084

High insider ownership aligns management incentives with shareholders — a key signal in Buffett-style analysis. Institutional concentration can indicate smart-money conviction but also crowding risk.

PEP

Insiders 0.2%Institutions 79.9%Retail & Other 19.9%

No. of Institutional Holders4,357

High insider ownership aligns management incentives with shareholders. Institutional concentration can indicate smart-money conviction but also crowding risk.

Insider Buying Activity

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Buys (3M)

Buys (12M)

BRENNEMAN GREGORY D

Director

$999,767

@ $346.66 · 2025-03-14

Open market purchases · includes direct & indirect ownership · excludes option exercises

PEP

Buys (3M)

Buys (12M)

No open market insider purchases found.

Open market purchases · includes direct & indirect ownership · excludes option exercises

Open market purchases · includes direct & indirect ownership · excludes option exercises.

Insider Selling Activity

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Sells (3M)

Sells (12M)

Total value (12M): $29.80M

DEATON JOHN A.

Officer

$661,617

@ $369.00 · 2026-03-04

MCPHAIL RICHARD V

Chief Financial Officer

$940,670

@ $368.89 · 2026-03-04

ROSEBOROUGH TERESA WYNN

General Counsel

$1.00M

@ $348.52 · 2025-12-26

BROWN ANGIE

Chief Technology Officer

$695,948

@ $357.63 · 2025-12-12

BASTEK WILLIAM D

Officer

$974,445

@ $423.12 · 2025-09-12

ROSEBOROUGH TERESA WYNN

General Counsel

$2.27M

@ $413.23 · 2025-08-22

BASTEK WILLIAM D

Officer

$1.55M

@ $410.23 · 2025-08-22

DECKER EDWARD P.

Chief Executive Officer

$13.07M

@ $397.22 · 2025-08-21

PADILLA HECTOR A

Officer

$640,609

@ $404.17 · 2025-08-20

BROWN ANGIE

Chief Technology Officer

$404,070

@ $404.07 · 2025-08-20

MCPHAIL RICHARD V

Chief Financial Officer

$1.36M

@ $403.66 · 2025-08-20

DEATON JOHN A.

Officer

$3.29M

@ $369.99 · 2025-06-03

ROSEBOROUGH TERESA WYNN

General Counsel

$2.00M

@ $369.28 · 2025-05-28

SIDDIQUI FAHIM

Chief Technology Officer

$954,564

@ $367.14 · 2025-05-22

BASTEK WILLIAM D

Officer

$1.24M

@ $416.61 · 2024-11-22

HOURIGAN TIMOTHY A

Officer

$6.55M

@ $409.52 · 2024-11-18

ROSEBOROUGH TERESA WYNN

General Counsel

$9.03M

@ $408.91 · 2024-11-14

CAMPBELL ANN-MARIE

Officer

$12.24M

@ $408.40 · 2024-11-14

PADILLA HECTOR A

Officer

$1.48M

@ $408.96 · 2024-11-14

MCPHAIL RICHARD V

Chief Financial Officer

$2.65M

@ $408.45 · 2024-11-13

SCARDINO KIMBERLY R.

Officer

$617,100

@ $363.00 · 2024-08-19

ROSEBOROUGH TERESA WYNN

General Counsel

$1.87M

@ $359.32 · 2024-08-15

CAREY MATTHEW A

Officer

$19.33M

@ $345.18 · 2024-05-16

SIDDIQUI FAHIM

Chief Technology Officer

$1.03M

@ $343.79 · 2024-05-16

PADILLA HECTOR A

Officer

$28,619

@ $349.01 · 2024-05-15

Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives

PEP

Sells (3M)

Sells (12M)

Total value (12M): $4.68M

LAGUARTA RAMON L

Chief Executive Officer

$4.68M

@ $167.39 · 2026-03-02

GALLAGHER MARIE T

Officer

$3.99M

@ $159.55 · 2025-03-04

FLAVELL DAVID JAMES

General Counsel

$1.04M

@ $150.90 · 2025-03-03

LAGUARTA RAMON L

Chief Executive Officer

$7.74M

@ $154.90 · 2025-03-03

KRISHNAN RAMKUMAR

Chief Executive Officer

$1.50M

@ $150.97 · 2025-03-03

WILLIAMS STEVEN C

Officer

$2.71M

@ $150.89 · 2025-03-03

SANTILLI PAULA ALEJANDRA

Officer

$1.18M

@ $151.89 · 2025-02-27

FLAVELL DAVID JAMES

General Counsel

$1.19M

@ $179.86 · 2024-05-10

KRISHNAN RAMKUMAR

Officer

$1.00M

@ $178.00 · 2024-05-09

Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives

Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives.

🎭 Mr. Market's Mood

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😨Fear(35/100)

"Market is pessimistic — investigate whether fears are temporary or structural"

Composite sentiment score based on 6 market signals. Inspired by Buffett's "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.

PEP

😐Neutral(50/100)

"Market is pricing this stock without strong emotion in either direction"

Composite sentiment score based on market signals. Inspired by Buffett’s "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.

⚖️ Buffett Signal

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⚪Awaiting DCF Data

The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.

DCF Margin of Safety: N/AMr. Market's Mood: Fear (35)

PEP

⚪Awaiting DCF Data

The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.

DCF Margin of Safety: N/AMr. Market's Mood: Neutral (50)

View HD Full Analysis View PEP Full Analysis