GlaxoSmithKline PLC ADR (GSK)vsThe Coca-Cola Company (KO)
GSK
GlaxoSmithKline PLC ADR
$54.71
+3.32%
HEALTHCARE · Cap: $104.12B
KO
The Coca-Cola Company
$75.25
+0.78%
CONSUMER DEFENSIVE · Cap: $321.39B
Smart Verdict
WallStSmart Research — data-driven comparison
The Coca-Cola Company generates 47% more annual revenue ($47.94B vs $32.67B). KO leads profitability with a 27.3% profit margin vs 17.5%. GSK appears more attractively valued with a PEG of 0.50. GSK earns a higher WallStSmart Score of 70/100 (B).
GSK
Strong Buy70
out of 100
Grade: B
KO
Buy57
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+66.0%
Fair Value
$172.22
Current Price
$54.71
$117.51 discount
Margin of Safety
-97.1%
Fair Value
$38.18
Current Price
$75.25
$37.07 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Growing faster than its price suggests
Every $100 of equity generates 43 in profit
Earnings expanding 54.7% YoY
Large-cap with strong market position
Attractively priced relative to earnings
Generating 1.5B in free cash flow
Mega-cap, among the largest globally
Every $100 of equity generates 43 in profit
Keeps 27 of every $100 in revenue as profit
Strong operational efficiency at 24.7%
Generating 2.9B in free cash flow
Areas to Watch
Trading at 10.1x book value
Elevated debt levels
Distress zone — elevated risk
Expensive relative to growth rate
Trading at 10.1x book value
2.4% revenue growth
3.6% earnings growth
Comparative Analysis Report
WallStSmart ResearchBull Case : GSK
The strongest argument for GSK centers on PEG Ratio, Return on Equity, EPS Growth. Profitability is solid with margins at 17.5% and operating margin at 18.9%. PEG of 0.50 suggests the stock is reasonably priced for its growth.
Bull Case : KO
The strongest argument for KO centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 27.3% and operating margin at 24.7%.
Bear Case : GSK
The primary concerns for GSK are Price/Book, Debt/Equity, Altman Z-Score.
Bear Case : KO
The primary concerns for KO are PEG Ratio, Price/Book, Revenue Growth.
Key Dynamics to Monitor
GSK profiles as a mature stock while KO is a value play — different risk/reward profiles.
KO carries more volatility with a beta of 0.33 — expect wider price swings.
GSK is growing revenue faster at 6.2% — sustainability is the question.
KO generates stronger free cash flow (2.9B), providing more financial flexibility.
Bottom Line
GSK scores higher overall (70/100 vs 57/100), backed by strong 17.5% margins. Both earn "Strong 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.
GlaxoSmithKline PLC ADR
HEALTHCARE · DRUG MANUFACTURERS - GENERAL · USA
GlaxoSmithKline plc is dedicated to the creation, discovery, development, manufacture and marketing of pharmaceuticals, vaccines, over-the-counter drugs and health-related consumer products in the UK, US and internationally. The company is headquartered in Brentford, the United Kingdom.
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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