WallStSmart

Coty Inc (COTY)vsThe Coca-Cola Company (KO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

The Coca-Cola Company generates 751% more annual revenue ($49.28B vs $5.79B). KO leads profitability with a 27.8% profit margin vs -9.2%. COTY appears more attractively valued with a PEG of 0.18. KO earns a higher WallStSmart Score of 65/100 (B-).

COTY

Hold

43

out of 100

Grade: D

Growth: 2.7Profit: 2.5Value: 8.3Quality: 3.5
Piotroski: 4/9Altman Z: 0.26

KO

Strong Buy

65

out of 100

Grade: B-

Growth: 6.0Profit: 9.5Value: 3.3Quality: 6.0
Piotroski: 6/9Altman Z: 2.49
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

COTYUndervalued (+64.7%)

Margin of Safety

+64.7%

Fair Value

$7.16

Current Price

$1.96

$5.20 discount

UndervaluedFair: $7.16Overvalued
KOSignificantly Overvalued (-29.0%)

Margin of Safety

-29.0%

Fair Value

$61.61

Current Price

$79.48

$17.87 premium

UndervaluedFair: $61.61Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

COTY2 strengths · Avg: 10.0/10
PEG RatioValuation
0.1810/10

Growing faster than its price suggests

Price/BookValuation
0.6x10/10

Reasonable price relative to book value

KO5 strengths · Avg: 9.4/10
Market CapQuality
$338.86B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
40.7%10/10

Every $100 of equity generates 41 in profit

Operating MarginProfitability
35.1%10/10

Strong operational efficiency at 35.1%

Profit MarginProfitability
27.8%9/10

Keeps 28 of every $100 in revenue as profit

Free Cash FlowQuality
$1.75B8/10

Generating 1.8B in free cash flow

Areas to Watch

COTY4 concerns · Avg: 2.5/10
Market CapQuality
$1.82B3/10

Smaller company, higher risk/reward

Debt/EquityHealth
1.153/10

Elevated debt levels

Return on EquityProfitability
-17.2%2/10

ROE of -17.2% — below average capital efficiency

Revenue GrowthGrowth
-1.3%2/10

Revenue declined 1.3%

KO3 concerns · Avg: 3.0/10
Price/BookValuation
10.2x4/10

Trading at 10.2x book value

Debt/EquityHealth
1.303/10

Elevated debt levels

PEG RatioValuation
4.022/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : COTY

The strongest argument for COTY centers on PEG Ratio, Price/Book. PEG of 0.18 suggests the stock is reasonably priced for its growth.

Bull Case : KO

The strongest argument for KO centers on Market Cap, Return on Equity, Operating Margin. Profitability is solid with margins at 27.8% and operating margin at 35.1%. Revenue growth of 12.1% demonstrates continued momentum.

Bear Case : COTY

The primary concerns for COTY are Market Cap, Debt/Equity, Return on Equity.

Bear Case : KO

The primary concerns for KO are Price/Book, Debt/Equity, PEG Ratio.

Key Dynamics to Monitor

COTY profiles as a turnaround stock while KO is a mature play — different risk/reward profiles.

COTY carries more volatility with a beta of 1.00 — expect wider price swings.

KO is growing revenue faster at 12.1% — sustainability is the question.

KO generates stronger free cash flow (1.8B), providing more financial flexibility.

Bottom Line

KO scores higher overall (65/100 vs 43/100), backed by strong 27.8% margins and 12.1% revenue growth. COTY offers better value entry with a 64.7% margin of safety. Both earn "Strong 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.

Coty Inc

CONSUMER DEFENSIVE · HOUSEHOLD & PERSONAL PRODUCTS · USA

Coty Inc., manufactures, markets, distributes and sells beauty products worldwide. The company is headquartered in New York, New York.

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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