WallStSmart

Keurig Dr Pepper Inc (KDP)vsMcGraw Hill, Inc. (MH)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Keurig Dr Pepper Inc generates 706% more annual revenue ($16.94B vs $2.10B). KDP leads profitability with a 10.8% profit margin vs 1.7%. KDP trades at a lower P/E of 23.5x. 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

MH

Hold

37

out of 100

Grade: F

Growth: 4.0Profit: 4.5Value: 4.0Quality: 3.5
Piotroski: 7/9Altman Z: 0.20
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

Intrinsic value data unavailable for MH.

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

MH0 strengths · Avg: 0/10

No standout strengths identified

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

MH4 concerns · Avg: 2.8/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Profit MarginProfitability
1.7%3/10

1.7% margin — thin

P/E RatioValuation
61.9x2/10

Premium valuation, high expectations priced in

Return on EquityProfitability
-9.2%2/10

ROE of -9.2% — below average capital efficiency

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 : MH

MH has a balanced fundamental profile.

Bear Case : KDP

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

Bear Case : MH

The primary concerns for MH are EPS Growth, Profit Margin, P/E Ratio. A P/E of 61.9x leaves little room for execution misses. Debt-to-equity of 3.47 is elevated, increasing financial risk.

Key Dynamics to Monitor

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

MH generates stronger free cash flow (308M), providing more financial flexibility.

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

Bottom Line

KDP scores higher overall (59/100 vs 37/100). 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.

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.

McGraw Hill, Inc.

CONSUMER DEFENSIVE · EDUCATION & TRAINING SERVICES · USA

McGraw Hill, Inc., doing business as McGraw Hill, provides information solutions for K-12, higher education, and professional markets in the United States and internationally.

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