Baidu Inc (BIDU)vsThe Coca-Cola Company (KO)
BIDU
Baidu Inc
$115.60
+2.73%
COMMUNICATION SERVICES · Cap: $38.29B
KO
The Coca-Cola Company
$75.25
+0.78%
CONSUMER DEFENSIVE · Cap: $321.39B
Smart Verdict
WallStSmart Research — data-driven comparison
Baidu Inc generates 169% more annual revenue ($129.08B vs $47.94B). KO leads profitability with a 27.3% profit margin vs 4.3%. BIDU appears more attractively valued with a PEG of 0.66. KO earns a higher WallStSmart Score of 57/100 (C).
BIDU
Hold46
out of 100
Grade: D+
KO
Buy57
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-1147.8%
Fair Value
$11.63
Current Price
$115.60
$103.97 premium
Margin of Safety
-97.1%
Fair Value
$38.18
Current Price
$75.25
$37.07 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Growing faster than its price suggests
Mega-cap, among the largest globally
Every $100 of equity generates 43 in profit
Keeps 27 of every $100 in revenue as profit
Strong operational efficiency at 24.7%
Generating 2.9B in free cash flow
Areas to Watch
ROE of 1.9% — below average capital efficiency
4.3% margin — thin
Operating margin of 4.5%
Weak financial health signals
Expensive relative to growth rate
Trading at 10.1x book value
2.4% revenue growth
3.6% earnings growth
Comparative Analysis Report
WallStSmart ResearchBull Case : BIDU
The strongest argument for BIDU centers on Price/Book, PEG Ratio. PEG of 0.66 suggests the stock is reasonably priced for its growth.
Bull Case : KO
The strongest argument for KO centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 27.3% and operating margin at 24.7%.
Bear Case : BIDU
The primary concerns for BIDU are Return on Equity, Profit Margin, Operating Margin. A P/E of 65.8x leaves little room for execution misses. Thin 4.3% margins leave little buffer for downturns.
Bear Case : KO
The primary concerns for KO are PEG Ratio, Price/Book, Revenue Growth.
Key Dynamics to Monitor
BIDU carries more volatility with a beta of 0.39 — expect wider price swings.
KO is growing revenue faster at 2.4% — sustainability is the question.
KO generates stronger free cash flow (2.9B), providing more financial flexibility.
Monitor INTERNET CONTENT & INFORMATION industry trends, competitive dynamics, and regulatory changes.
Bottom Line
KO scores higher overall (57/100 vs 46/100), backed by strong 27.3% margins. Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Baidu Inc
COMMUNICATION SERVICES · INTERNET CONTENT & INFORMATION · China
Baidu, Inc. provides Internet search services primarily in China. The company is headquartered in Beijing, China.
The Coca-Cola Company
CONSUMER DEFENSIVE · BEVERAGES - NON-ALCOHOLIC · USA
The Coca-Cola Company is an American multinational beverage corporation incorporated under Delaware's General Corporation Law and headquartered in Atlanta, Georgia. The Coca-Cola Company has interests in the manufacturing, retailing, and marketing of nonalcoholic beverage concentrates and syrups.
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