Keurig Dr Pepper Inc (KDP)vsMcCormick & Company Incorporated (MKC)
KDP
Keurig Dr Pepper Inc
$31.39
-0.22%
CONSUMER DEFENSIVE · Cap: $44.29B
MKC
McCormick & Company Incorporated
$51.32
+0.43%
CONSUMER DEFENSIVE · Cap: $13.95B
Smart Verdict
WallStSmart Research — data-driven comparison
Keurig Dr Pepper Inc generates 172% more annual revenue ($20.09B vs $7.39B). MKC leads profitability with a 21.9% profit margin vs 7.1%. KDP appears more attractively valued with a PEG of 1.01. MKC earns a higher WallStSmart Score of 67/100 (B-).
KDP
Buy61
out of 100
Grade: C+
MKC
Strong Buy67
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+63.1%
Fair Value
$81.12
Current Price
$31.39
$49.73 discount
Margin of Safety
+26.7%
Fair Value
$96.17
Current Price
$51.32
$44.85 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Revenue surging 75.6% year-over-year
Reasonable price relative to book value
Attractively priced relative to earnings
Every $100 of equity generates 23 in profit
Keeps 22 of every $100 in revenue as profit
Reasonable price relative to book value
16.7% revenue growth
Areas to Watch
Premium valuation, high expectations priced in
ROE of 5.7% — below average capital efficiency
7.1% margin — thin
Elevated debt levels
Expensive relative to growth rate
Distress zone — elevated risk
Earnings declined 14.2%
Comparative Analysis Report
WallStSmart ResearchBull 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 : MKC
The strongest argument for MKC centers on P/E Ratio, Return on Equity, Profit Margin. Profitability is solid with margins at 21.9% and operating margin at 17.4%. Revenue growth of 16.7% demonstrates continued momentum.
Bear Case : KDP
The primary concerns for KDP are P/E Ratio, Return on Equity, Profit Margin.
Bear Case : MKC
The primary concerns for MKC are PEG Ratio, Altman Z-Score, EPS Growth.
Key Dynamics to Monitor
KDP profiles as a hypergrowth stock while MKC is a growth play — different risk/reward profiles.
MKC carries more volatility with a beta of 0.63 — 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
MKC scores higher overall (67/100 vs 61/100), backed by strong 21.9% margins and 16.7% revenue growth. KDP offers better value entry with a 63.1% 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.
McCormick & Company Incorporated
CONSUMER DEFENSIVE · PACKAGED FOODS · USA
McCormick & Company is an American multinational food company that manufactures, markets, and distributes spices, seasoning mixes, condiments, and other flavoring products to retail outlets, food manufacturers, and foodservice businesses.
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