WallStSmart

Keurig Dr Pepper Inc (KDP)vsLamb Weston Holdings Inc (LW)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Keurig Dr Pepper Inc generates 204% more annual revenue ($20.09B vs $6.61B). KDP leads profitability with a 7.1% profit margin vs 4.4%. LW appears more attractively valued with a PEG of 0.82. KDP earns a higher WallStSmart Score of 61/100 (C+).

KDP

Buy

61

out of 100

Grade: C+

Growth: 6.0Profit: 5.0Value: 6.7Quality: 4.0
Piotroski: 5/9Altman Z: 1.09

LW

Buy

53

out of 100

Grade: C-

Growth: 4.7Profit: 6.0Value: 7.3Quality: 4.3
Piotroski: 5/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

KDPUndervalued (+63.1%)

Margin of Safety

+63.1%

Fair Value

$81.12

Current Price

$31.39

$49.73 discount

UndervaluedFair: $81.12Overvalued
LWUndervalued (+27.6%)

Margin of Safety

+27.6%

Fair Value

$69.34

Current Price

$47.85

$21.49 discount

UndervaluedFair: $69.34Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

KDP2 strengths · Avg: 9.0/10
Revenue GrowthGrowth
75.6%10/10

Revenue surging 75.6% year-over-year

Price/BookValuation
1.7x8/10

Reasonable price relative to book value

LW1 strengths · Avg: 8.0/10
PEG RatioValuation
0.828/10

Growing faster than its price suggests

Areas to Watch

KDP4 concerns · Avg: 3.3/10
P/E RatioValuation
32.9x4/10

Premium valuation, high expectations priced in

Return on EquityProfitability
5.7%3/10

ROE of 5.7% — below average capital efficiency

Profit MarginProfitability
7.1%3/10

7.1% margin — thin

Debt/EquityHealth
1.373/10

Elevated debt levels

LW3 concerns · Avg: 2.0/10
Profit MarginProfitability
4.4%3/10

4.4% margin — thin

EPS GrowthGrowth
-6.2%2/10

Earnings declined 6.2%

Debt/EquityHealth
2.161/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

Bull Case : KDP

The strongest argument for KDP centers on Revenue Growth, Price/Book. Revenue growth of 75.6% demonstrates continued momentum. PEG of 1.01 suggests the stock is reasonably priced for its growth.

Bull Case : LW

The strongest argument for LW centers on PEG Ratio. PEG of 0.82 suggests the stock is reasonably priced for its growth.

Bear Case : KDP

The primary concerns for KDP are P/E Ratio, Return on Equity, Profit Margin.

Bear Case : LW

The primary concerns for LW are Profit Margin, EPS Growth, Debt/Equity. Debt-to-equity of 2.16 is elevated, increasing financial risk. Thin 4.4% margins leave little buffer for downturns.

Key Dynamics to Monitor

KDP profiles as a hypergrowth stock while LW is a value play — different risk/reward profiles.

LW carries more volatility with a beta of 0.46 — expect wider price swings.

KDP is growing revenue faster at 75.6% — sustainability is the question.

KDP generates stronger free cash flow (714M), providing more financial flexibility.

Bottom Line

KDP scores higher overall (61/100 vs 53/100) and 75.6% revenue growth. LW offers better value entry with a 27.6% 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.

Lamb Weston Holdings Inc

CONSUMER DEFENSIVE · PACKAGED FOODS · USA

Lamb Weston Holdings, Inc. is an American food processing company that is one of the world's largest producers and processors of frozen french fries and other frozen potato products. It is headquartered in Eagle, Idaho.

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