WallStSmart

Dollar Tree Inc (DLTR)vsThe Coca-Cola Company (KO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

The Coca-Cola Company generates 150% more annual revenue ($50.13B vs $20.07B). KO leads profitability with a 28.6% profit margin vs 8.0%. DLTR appears more attractively valued with a PEG of 1.64. KO earns a higher WallStSmart Score of 63/100 (C+).

DLTR

Buy

63

out of 100

Grade: C+

Growth: 7.3Profit: 7.5Value: 6.7Quality: 5.5
Piotroski: 6/9Altman Z: 2.51

KO

Buy

63

out of 100

Grade: C+

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

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DLTRUndervalued (+19.9%)

Margin of Safety

+19.9%

Fair Value

$156.08

Current Price

$118.17

$37.91 discount

UndervaluedFair: $156.08Overvalued
KOSignificantly Overvalued (-40.1%)

Margin of Safety

-40.1%

Fair Value

$63.02

Current Price

$89.36

$26.34 premium

UndervaluedFair: $63.02Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

DLTR3 strengths · Avg: 9.3/10
Return on EquityProfitability
47.1%10/10

Every $100 of equity generates 47 in profit

EPS GrowthGrowth
197.2%10/10

Earnings expanding 197.2% YoY

P/E RatioValuation
16.1x8/10

Attractively priced relative to earnings

KO5 strengths · Avg: 9.4/10
Market CapQuality
$379.87B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
39.6%10/10

Every $100 of equity generates 40 in profit

Operating MarginProfitability
34.9%10/10

Strong operational efficiency at 34.9%

Profit MarginProfitability
28.6%9/10

Keeps 29 of every $100 in revenue as profit

Free Cash FlowQuality
$5.10B8/10

Generating 5.1B in free cash flow

Areas to Watch

DLTR2 concerns · Avg: 2.5/10
PEG RatioValuation
1.644/10

Expensive relative to growth rate

Debt/EquityHealth
2.241/10

Elevated debt levels

KO4 concerns · Avg: 3.3/10
P/E RatioValuation
26.5x4/10

Moderate valuation

Price/BookValuation
10.6x4/10

Trading at 10.6x book value

Debt/EquityHealth
1.203/10

Elevated debt levels

PEG RatioValuation
3.992/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : DLTR

The strongest argument for DLTR centers on Return on Equity, EPS Growth, P/E Ratio.

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 : DLTR

The primary concerns for DLTR are PEG Ratio, Debt/Equity. Debt-to-equity of 2.24 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

DLTR profiles as a value stock while KO is a mature play — different risk/reward profiles.

DLTR carries more volatility with a beta of 0.66 — expect wider price swings.

DLTR is growing revenue faster at 7.0% — sustainability is the question.

KO generates stronger free cash flow (5.1B), providing more financial flexibility.

Bottom Line

DLTR scores higher overall (63/100 vs 63/100). 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.

Dollar Tree Inc

CONSUMER DEFENSIVE · DISCOUNT STORES · USA

Dollar Tree is an American chain of discount variety stores that sells items for $1 or less, headquartered in Chesapeake, Virginia.

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 →

Want to dig deeper into these stocks?