WallStSmart

Keurig Dr Pepper Inc (KDP)vsThe Coca-Cola Company (KO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

The Coca-Cola Company generates 191% more annual revenue ($49.28B vs $16.94B). KO leads profitability with a 27.8% profit margin vs 10.8%. KDP appears more attractively valued with a PEG of 1.06. KO earns a higher WallStSmart Score of 65/100 (B-).

KDP

Buy

59

out of 100

Grade: C

Growth: 4.7Profit: 6.0Value: 7.3Quality: 5.5
Piotroski: 5/9Altman Z: 1.09

KO

Strong Buy

65

out of 100

Grade: B-

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

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

KDPUndervalued (+57.1%)

Margin of Safety

+57.1%

Fair Value

$69.64

Current Price

$30.53

$39.11 discount

UndervaluedFair: $69.64Overvalued
KOSignificantly Overvalued (-30.3%)

Margin of Safety

-30.3%

Fair Value

$61.61

Current Price

$79.48

$17.87 premium

UndervaluedFair: $61.61Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

KDP1 strengths · Avg: 8.0/10
Price/BookValuation
1.6x8/10

Reasonable price relative to book value

KO5 strengths · Avg: 9.4/10
Market CapQuality
$348.11B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
40.7%10/10

Every $100 of equity generates 41 in profit

Operating MarginProfitability
35.1%10/10

Strong operational efficiency at 35.1%

Profit MarginProfitability
27.8%9/10

Keeps 28 of every $100 in revenue as profit

Free Cash FlowQuality
$1.75B8/10

Generating 1.8B in free cash flow

Areas to Watch

KDP4 concerns · Avg: 2.5/10
Return on EquityProfitability
7.3%3/10

ROE of 7.3% — below average capital efficiency

Debt/EquityHealth
1.023/10

Elevated debt levels

EPS GrowthGrowth
-47.7%2/10

Earnings declined 47.7%

Altman Z-ScoreHealth
1.092/10

Distress zone — elevated risk

KO4 concerns · Avg: 3.3/10
P/E RatioValuation
25.9x4/10

Moderate valuation

Price/BookValuation
10.2x4/10

Trading at 10.2x book value

Debt/EquityHealth
1.303/10

Elevated debt levels

PEG RatioValuation
4.232/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : KDP

The strongest argument for KDP centers on Price/Book. PEG of 1.06 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 : KDP

The primary concerns for KDP are Return on Equity, Debt/Equity, EPS Growth.

Bear Case : KO

The primary concerns for KO are P/E Ratio, Price/Book, Debt/Equity.

Key Dynamics to Monitor

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

KDP carries more volatility with a beta of 0.42 — expect wider price swings.

KO is growing revenue faster at 12.1% — sustainability is the question.

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

Bottom Line

KO scores higher overall (65/100 vs 59/100), backed by strong 27.8% margins and 12.1% revenue growth. KDP offers better value entry with a 57.1% margin of safety. 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.

Keurig Dr Pepper Inc

CONSUMER DEFENSIVE · BEVERAGES - NON-ALCOHOLIC · USA

Keurig Dr Pepper Inc. is a beverage company in the United States and internationally. The company is headquartered in Burlington, Massachusetts.

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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