WallStSmart

Keurig Dr Pepper Inc (KDP)vsKroger Company (KR)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Kroger Company generates 777% more annual revenue ($148.65B vs $16.94B). KDP leads profitability with a 10.8% profit margin vs 0.7%. KR appears more attractively valued with a PEG of 0.56. KDP earns a higher WallStSmart Score of 59/100 (C).

KDP

Buy

59

out of 100

Grade: C

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

KR

Buy

55

out of 100

Grade: C

Growth: 4.0Profit: 5.5Value: 6.7Quality: 5.0
Piotroski: 5/9Altman Z: 3.88
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

KDPUndervalued (+56.9%)

Margin of Safety

+56.9%

Fair Value

$69.30

Current Price

$31.67

$37.63 discount

UndervaluedFair: $69.30Overvalued
KRUndervalued (+20.2%)

Margin of Safety

+20.2%

Fair Value

$73.34

Current Price

$60.54

$12.80 discount

UndervaluedFair: $73.34Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

KDP1 strengths · Avg: 8.0/10
Price/BookValuation
1.7x8/10

Reasonable price relative to book value

KR2 strengths · Avg: 9.0/10
Altman Z-ScoreHealth
3.8810/10

Safe zone — low bankruptcy risk

PEG RatioValuation
0.568/10

Growing faster than its price suggests

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

KR4 concerns · Avg: 3.5/10
P/E RatioValuation
34.1x4/10

Premium valuation, high expectations priced in

Revenue GrowthGrowth
2.2%4/10

2.2% revenue growth

Profit MarginProfitability
0.7%3/10

0.7% margin — thin

Operating MarginProfitability
3.2%3/10

Operating margin of 3.2%

Comparative Analysis Report

WallStSmart Research

Bull Case : KDP

The strongest argument for KDP centers on Price/Book. PEG of 1.11 suggests the stock is reasonably priced for its growth.

Bull Case : KR

The strongest argument for KR centers on Altman Z-Score, PEG Ratio. PEG of 0.56 suggests the stock is reasonably priced for its growth.

Bear Case : KDP

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

Bear Case : KR

The primary concerns for KR are P/E Ratio, Revenue Growth, Profit Margin. Debt-to-equity of 3.63 is elevated, increasing financial risk. Thin 0.7% margins leave little buffer for downturns.

Key Dynamics to Monitor

KR carries more volatility with a beta of 0.43 — expect wider price swings.

KDP is growing revenue faster at 9.4% — sustainability is the question.

KR generates stronger free cash flow (462M), providing more financial flexibility.

Monitor BEVERAGES - NON-ALCOHOLIC industry trends, competitive dynamics, and regulatory changes.

Bottom Line

KDP scores higher overall (59/100 vs 55/100). KR offers better value entry with a 20.2% margin of safety. 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.

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.

Kroger Company

CONSUMER DEFENSIVE · GROCERY STORES · USA

The Kroger Company, or simply Kroger, is an American retail company founded by Bernard Kroger in 1883 in Cincinnati, Ohio.

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