Gilead Sciences Inc (GILD)vsThe Coca-Cola Company (KO)
GILD
Gilead Sciences Inc
$131.33
-2.04%
HEALTHCARE · Cap: $166.40B
KO
The Coca-Cola Company
$78.42
-0.01%
CONSUMER DEFENSIVE · Cap: $337.40B
Smart Verdict
WallStSmart Research — data-driven comparison
The Coca-Cola Company generates 67% more annual revenue ($49.28B vs $29.44B). GILD leads profitability with a 28.9% profit margin vs 27.8%. GILD appears more attractively valued with a PEG of 0.38. GILD earns a higher WallStSmart Score of 72/100 (B).
GILD
Strong Buy72
out of 100
Grade: B
KO
Strong Buy65
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+43.2%
Fair Value
$236.08
Current Price
$131.33
$104.75 discount
Margin of Safety
-22.2%
Fair Value
$64.19
Current Price
$78.42
$14.23 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Growing faster than its price suggests
Every $100 of equity generates 41 in profit
Strong operational efficiency at 37.4%
Large-cap with strong market position
Keeps 29 of every $100 in revenue as profit
Earnings expanding 23.4% YoY
Mega-cap, among the largest globally
Every $100 of equity generates 43 in profit
Strong operational efficiency at 35.1%
Keeps 28 of every $100 in revenue as profit
Generating 1.8B in free cash flow
Areas to Watch
4.7% revenue growth
Trading at 10.0x book value
Elevated debt levels
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : GILD
The strongest argument for GILD centers on PEG Ratio, Return on Equity, Operating Margin. Profitability is solid with margins at 28.9% and operating margin at 37.4%. PEG of 0.38 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 : GILD
The primary concerns for GILD are Revenue Growth.
Bear Case : KO
The primary concerns for KO are Price/Book, Debt/Equity, PEG Ratio.
Key Dynamics to Monitor
GILD profiles as a value stock while KO is a mature play — different risk/reward profiles.
KO carries more volatility with a beta of 0.36 — expect wider price swings.
KO is growing revenue faster at 12.1% — sustainability is the question.
GILD generates stronger free cash flow (3.1B), providing more financial flexibility.
Bottom Line
GILD scores higher overall (72/100 vs 65/100), backed by strong 28.9% margins. Both earn "Strong Buy" and "Strong 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.
Gilead Sciences Inc
HEALTHCARE · DRUG MANUFACTURERS - GENERAL · USA
Gilead Sciences, Inc. is an American biopharmaceutical company headquartered in Foster City, California, that focuses on researching and developing antiviral drugs used in the treatment of HIV, hepatitis B, hepatitis C, and influenza, including Harvoni and Sovaldi.
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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