WallStSmart

Grocery Outlet Holding Corp (GO)vsThe Coca-Cola Company (KO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

The Coca-Cola Company generates 960% more annual revenue ($50.13B vs $4.73B). KO leads profitability with a 28.6% profit margin vs -8.1%. KO earns a higher WallStSmart Score of 63/100 (C+).

GO

Hold

36

out of 100

Grade: F

Growth: 4.0Profit: 2.5Value: 6.7Quality: 4.5
Piotroski: 4/9Altman Z: 1.69

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

GOUndervalued (+59.3%)

Margin of Safety

+59.3%

Fair Value

$24.04

Current Price

$9.91

$14.13 discount

UndervaluedFair: $24.04Overvalued
KOSignificantly Overvalued (-38.2%)

Margin of Safety

-38.2%

Fair Value

$62.84

Current Price

$87.06

$24.22 premium

UndervaluedFair: $62.84Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

GO1 strengths · Avg: 10.0/10
Price/BookValuation
1.2x10/10

Reasonable price relative to book value

KO5 strengths · Avg: 9.4/10
Market CapQuality
$373.59B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
40.7%10/10

Every $100 of equity generates 41 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
$1.75B8/10

Generating 1.8B in free cash flow

Areas to Watch

GO4 concerns · Avg: 3.3/10
Revenue GrowthGrowth
3.6%4/10

3.6% revenue growth

Altman Z-ScoreHealth
1.694/10

Distress zone — elevated risk

Market CapQuality
$909.10M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
-47.3%2/10

ROE of -47.3% — below average capital efficiency

KO4 concerns · Avg: 3.3/10
P/E RatioValuation
26.0x4/10

Moderate valuation

Price/BookValuation
10.4x4/10

Trading at 10.4x book value

Debt/EquityHealth
1.303/10

Elevated debt levels

PEG RatioValuation
4.222/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : GO

The strongest argument for GO centers on Price/Book.

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 : GO

The primary concerns for GO are Revenue Growth, Altman Z-Score, Market Cap. Debt-to-equity of 2.28 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

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

GO carries more volatility with a beta of 0.68 — expect wider price swings.

KO is growing revenue faster at 6.7% — sustainability is the question.

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

Bottom Line

KO scores higher overall (63/100 vs 36/100), backed by strong 28.6% margins. GO offers better value entry with a 59.3% margin of safety. 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.

Grocery Outlet Holding Corp

CONSUMER DEFENSIVE · GROCERY STORES · USA

Grocery Outlet Holding Corp. The company is headquartered in Emeryville, California.

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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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