Compare Stocks › PEP vs TJX

PepsiCo, Inc. (PEP) vs The TJX Companies, Inc. (TJX): Which Is the Better Buy in 2026?

As of 2026-06-19, PEP is overvalued at $142, with a DCF intrinsic value of $82 and a margin of safety of -74%. TJX is overvalued at $164, with an intrinsic value of $116 and a margin of safety of -41%. Of the two, TJX has the wider margin of safety.

PEP

PepsiCo, Inc.

$142.02

TJX

The TJX Companies, Inc.

$163.81

Rewards

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.

TJX

★The TJX Companies, Inc. has maintained ROIC above 15% for 4 consecutive years, indicating a durable competitive advantage.
★The TJX Companies, Inc. scores 94/100 on the Economic Moat Score (Wide Moat), with roic consistency as the strongest competitive dimension.
★Free cash flow has grown at a 23.2% CAGR over the past 4 years, demonstrating strong earnings power growth.

Risks

PEP

⚠High leverage (1.95x net debt/equity) combined with thin interest coverage (-1.0x) poses financial risk.

TJX

⚠FCF yield of 2.4% is below 3%, meaning the market is pricing in substantial future growth to justify the current price.
⚠PEG ratio of 3.55 indicates the stock is expensive relative to its expected growth — the market may be pricing in more growth than analysts project.
⚠6 insider sales totaling $27.7M with no purchases in the past 3 months — insiders are reducing their exposure.

Key Valuation Metrics

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PEP

TJX

Valuation

$8.75B

Free Cash Flow

$4.31B

4.51%

FCF Yield

2.38%

22.30

Trailing P/E

31.87

15.59

Forward P/E

28.44

Quality & Moat

17.22%

ROIC

23.30%

43.88%

ROE

61.25%

54.38%

Gross Margin

31.35%

1.57

PEG Ratio

3.55

Balance Sheet Safety

1.95

Net Debt / Equity

0.83

N/A

Interest Coverage

N/A

2.24

Net Debt / EBITDA

0.97

4.02%

Dividend Yield

1.15%

PEP: 7Ties: 1TJX: 4

PEPTJX

Historical Fundamentals

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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. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS.

TJX

$1 Retained Earnings Test

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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

TJX

$7.40

created per $1 retained over 3 years

Exceptional Value Creator

Σ Retained

$9.86B

Δ Market Cap

+$72.96B

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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PEP

73.7% Overvalued

Price is 73.7% above estimated fair value

Current Price: $142.02

Strongly undervalued

Fairly valued

Strongly overvalued

Fair Value: $81.78

Strongly undervalued

Undervalued

Fairly valued

Overvalued

Strongly overvalued

TJX

40.9% Overvalued

Price is 40.9% above estimated fair value

Current Price: $163.81

Strongly undervalued

Undervalued

Fairly valued

Overvalued

Strongly overvalued

Fair Value: $116.24

Strongly undervalued

Undervalued

Fairly valued

Overvalued

Strongly overvalued

Reverse DCF — Market-Implied Growth

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PEP

What growth rate is the market pricing in at $142?

+12.6%

Market-Implied Owner Earnings Growth

Standard FCF implies +11.8%

The market implies +12.6% Owner Earnings growth, above historical trends.

Standard FCF implies a demanding +11.8%, reflecting heavy growth investment.

TJX

What growth rate is the market pricing in at $164?

+15.1%

Market-Implied Owner Earnings Growth

Standard FCF implies +18.4%

The market implies +15.1% Owner Earnings growth, roughly in line with history — reasonably priced.

Standard FCF implies +18.4%, reflecting ongoing growth investment.

Economic Moat Score

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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.

Composite score measuring competitive advantage durability across four dimensions: returns above cost of capital, pricing power stability, revenue predictability, and capital efficiency. Based on 4 years of fundamental data.

TJX

94/100

Wide Moat

70+ Wide · 40-69 Narrow · <40 None

Wide moat with strength across all dimensions. ROIC Consistency is the standout factor.

Forensic Accounting

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PEP

-2.57

Unlikely 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.

TJX

-2.56

Unlikely Manipulator

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

M-Score Trend

Ownership Breakdown

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PEP

Insiders 0.2%Institutions 80.9%Retail & Other 18.9%

No. of Institutional Holders4,456

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.

TJX

Insiders 0.2%Institutions 94.0%Retail & Other 5.8%

No. of Institutional Holders3,524

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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PEP

Buys (3M)

Buys (12M)

No open market insider purchases found.

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

TJX

Buys (3M)

Buys (12M)

Total value (12M): $4,199

ALVAREZ JOSE B

Director

$734.00

@ $183.50 · 2026-03-05

ALVAREZ JOSE B

Director

$3,465

@ $133.27 · 2025-12-04

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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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

KRISHNAN RAMKUMAR

Chief Executive Officer

$1.50M

@ $150.97 · 2025-03-03

WILLIAMS STEVEN C

Officer

$2.71M

@ $150.89 · 2025-03-03

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

SANTILLI PAULA ALEJANDRA

Officer

$1.18M

@ $151.89 · 2025-02-27

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

TJX

Sells (3M)

Sells (12M)

Total value (12M): $41.14M

NEMEROV JACKWYN L

Director

$161,345

@ $168.59 · 2026-06-11

BENJAMIN PETER

Officer

$1.80M

@ $165.00 · 2026-06-10

MEYROWITZ CAROL M

Officer and Director

$9.10M

@ $163.65 · 2026-06-09

KLINGER JOHN

Chief Financial Officer

$1.00M

@ $160.77 · 2026-06-05

HERRMAN ERNIE L

Chief Executive Officer

$10.69M

@ $158.29 · 2026-06-05

CANESTRARI KENNETH D

Officer

$4.95M

@ $157.50 · 2026-06-03

HERRMAN ERNIE L

Chief Executive Officer

$4.83M

@ $160.95 · 2026-03-02

LANE AMY BETH

Director

$75,700

@ $151.40 · 2025-11-21

HERRMAN ERNIE L

Chief Executive Officer

$8.15M

@ $149.93 · 2025-11-21

BENJAMIN PETER

Officer

$208,845

@ $139.23 · 2025-09-08

NEMEROV JACKWYN L

Director

$164,496

@ $138.00 · 2025-09-02

LANE AMY BETH

Director

$121,689

@ $128.09 · 2025-06-03

BENJAMIN PETER

Officer

$535,042

@ $129.77 · 2025-05-22

HERRMAN ERNIE L

Chief Executive Officer

$2.10M

@ $116.54 · 2025-03-20

HERRMAN ERNIE L

Chief Executive Officer

$2.88M

@ $123.04 · 2025-03-05

BENNETT ALAN M

Director

$988,254

@ $123.53 · 2025-02-27

HERRMAN ERNIE L

Chief Executive Officer

$950,551

@ $126.18 · 2024-12-05

LANE AMY BETH

Director

$126,925

@ $126.92 · 2024-11-27

HERRMAN ERNIE L

Chief Executive Officer

$2.32M

@ $121.27 · 2024-11-22

NEMEROV JACKWYN L

Director

$139,252

@ $117.71 · 2024-09-12

HERRMAN ERNIE L

Chief Executive Officer

$1.76M

@ $117.54 · 2024-09-10

GREENLEES LOUISE E.

Officer

$555,635

@ $119.23 · 2024-08-22

HERRMAN ERNIE L

Chief Executive Officer

$2.41M

@ $120.47 · 2024-08-22

CHING DAVID T

Director

$1.55M

@ $119.39 · 2024-08-22

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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PEP

😐Neutral(48/100)

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

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.

TJX

😏Greed(69/100)

"Market is optimistic — be cautious and ensure you have a margin of safety"

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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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 (48)

TJX

⚪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: Greed (69)

View PEP Full Analysis View TJX Full Analysis

Frequently Asked Questions: PEP vs TJX

Is PepsiCo, Inc. or The TJX Companies, Inc. more undervalued in 2026?▼

Based on our discounted cash flow model, TJX trades at a -40.9% margin of safety (intrinsic value $116 vs. price $164), compared to PEP's -73.7% margin of safety (intrinsic $82 vs. $142).

Which stock has a wider economic moat, PepsiCo, Inc. or The TJX Companies, Inc.?▼

TJX scores 94/100 (Wide moat), while PEP scores 88/100 (Wide moat). The moat score measures competitive advantage durability across ROIC consistency, margin stability, revenue predictability, and reinvestment efficiency.

Which company has better free cash flow, PepsiCo, Inc. or The TJX Companies, Inc.?▼

PepsiCo, Inc. (PEP) generates a 4.5% free cash flow yield, compared to The TJX Companies, Inc.'s 2.4%. A higher FCF yield means the business converts more of its market value into cash that can be returned to shareholders or reinvested.

Which stock has higher return on invested capital, PepsiCo, Inc. or The TJX Companies, Inc.?▼

TJX earns 23.3% ROIC versus PEP's 17.2%. A higher ROIC means the company generates more profit per dollar of capital employed, a hallmark of durable competitive advantage in Buffett-style analysis.

Which dividend is safer, PepsiCo, Inc.'s or The TJX Companies, Inc.'s?▼

TJX's dividend earns a safety score of 94/100 (Very Safe), compared to PEP's 34/100 (Unsafe). TJX has raised its dividend for 3 consecutive years.