Diageo PLC ADR (DEO)vsThe Coca-Cola Company (KO)
DEO
Diageo PLC ADR
$91.96
-1.19%
CONSUMER DEFENSIVE · Cap: $53.37B
KO
The Coca-Cola Company
$92.84
+1.21%
CONSUMER DEFENSIVE · Cap: $404.01B
Smart Verdict
WallStSmart Research — data-driven comparison
The Coca-Cola Company generates 155% more annual revenue ($50.13B vs $19.64B). KO leads profitability with a 28.6% profit margin vs 8.8%. DEO appears more attractively valued with a PEG of 0.54. KO earns a higher WallStSmart Score of 61/100 (C+).
DEO
Buy52
out of 100
Grade: C-
KO
Buy61
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+52.2%
Fair Value
$210.77
Current Price
$91.96
$118.81 discount
Margin of Safety
-46.5%
Fair Value
$63.26
Current Price
$92.84
$29.58 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 38 in profit
Large-cap with strong market position
Growing faster than its price suggests
Strong operational efficiency at 27.0%
Generating 1.7B in free cash flow
Mega-cap, among the largest globally
Every $100 of equity generates 40 in profit
Strong operational efficiency at 34.9%
Keeps 29 of every $100 in revenue as profit
Generating 5.1B in free cash flow
Areas to Watch
Premium valuation, high expectations priced in
2.9% earnings growth
Distress zone — elevated risk
Weak financial health signals
Moderate valuation
Trading at 11.1x book value
Elevated debt levels
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : DEO
The strongest argument for DEO centers on Return on Equity, Market Cap, PEG Ratio. PEG of 0.54 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 28.6% and operating margin at 34.9%.
Bear Case : DEO
The primary concerns for DEO are P/E Ratio, EPS Growth, Altman Z-Score. Debt-to-equity of 2.04 is elevated, increasing financial risk.
Bear Case : KO
The primary concerns for KO are P/E Ratio, Price/Book, Debt/Equity.
Key Dynamics to Monitor
DEO profiles as a value stock while KO is a mature play — different risk/reward profiles.
DEO carries more volatility with a beta of 0.35 — expect wider price swings.
KO is growing revenue faster at 6.7% — sustainability is the question.
KO generates stronger free cash flow (5.1B), providing more financial flexibility.
Bottom Line
KO scores higher overall (61/100 vs 52/100), backed by strong 28.6% margins. DEO offers better value entry with a 52.2% margin of safety. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Diageo PLC ADR
CONSUMER DEFENSIVE · BEVERAGES - WINERIES & DISTILLERIES · USA
Diageo plc produces, markets and sells alcoholic beverages. The company is headquartered in London, the United Kingdom.
Visit Website →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.
Visit Website →Compare with Other BEVERAGES - WINERIES & DISTILLERIES Stocks
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