The video compares Pepsi (PEP) and UPS as potential dividend stock investments, noting both face headwinds affecting profit margins. The speaker presents revenue growth charts for both companies over the past decade, revealing solid growth with UPS increasing revenue from 58 billion to 90 billion, and Pepsi from 63.1 billion to 91.7 billion. Both companies anticipate trade barriers and increasing costs respectively impacting future performance. ROIC for UPS has declined from 16.5% in 2016 to 11.4% recently while PepsiCo is exploring supply chain integrations to improve returns. A fair value for UPS is calculated at $122 per share, while the current market price is $84. A fair value for Pepsi is calculated at $176 and the current market price at $140. The cheapest valuation for UPS goes back to January of 2022. Forward PE ratio for Pepsi is 17, and just under 13 for UPS. If a single stock must be picked the analyst prefers Pepsi based on being a better dividend stock.