WallStSmart

Keurig Dr Pepper Inc (KDP)vsConstellation Brands Inc Class A (STZ)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Keurig Dr Pepper Inc generates 122% more annual revenue ($20.09B vs $9.06B). STZ leads profitability with a 20.1% profit margin vs 7.1%. KDP appears more attractively valued with a PEG of 1.01. STZ earns a higher WallStSmart Score of 74/100 (B).

KDP

Buy

61

out of 100

Grade: C+

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

STZ

Strong Buy

74

out of 100

Grade: B

Growth: 4.7Profit: 8.5Value: 6.3Quality: 5.0
Piotroski: 5/9Altman Z: 2.08
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

Intrinsic value data unavailable for STZ.

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

STZ6 strengths · Avg: 9.0/10
P/E RatioValuation
11.5x10/10

Attractively priced relative to earnings

Operating MarginProfitability
35.9%10/10

Strong operational efficiency at 35.9%

Return on EquityProfitability
22.1%9/10

Every $100 of equity generates 22 in profit

Profit MarginProfitability
20.1%9/10

Keeps 20 of every $100 in revenue as profit

Price/BookValuation
2.5x8/10

Reasonable price relative to book value

EPS GrowthGrowth
30.7%8/10

Earnings expanding 30.7% YoY

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

STZ3 concerns · Avg: 3.0/10
PEG RatioValuation
1.634/10

Expensive relative to growth rate

Debt/EquityHealth
1.283/10

Elevated debt levels

Revenue GrowthGrowth
-3.3%2/10

Revenue declined 3.3%

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 : STZ

The strongest argument for STZ centers on P/E Ratio, Operating Margin, Return on Equity. Profitability is solid with margins at 20.1% and operating margin at 35.9%.

Bear Case : KDP

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

Bear Case : STZ

The primary concerns for STZ are PEG Ratio, Debt/Equity, Revenue Growth.

Key Dynamics to Monitor

KDP profiles as a hypergrowth stock while STZ is a declining play — different risk/reward profiles.

KDP carries more volatility with a beta of 0.41 — 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

STZ scores higher overall (74/100 vs 61/100), backed by strong 20.1% margins. 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.

Constellation Brands Inc Class A

CONSUMER DEFENSIVE · BEVERAGES - BREWERS · USA

Constellation Brands, Inc., headquartered in Victor, New York, is an American producer and marketer of beer, wine, and spirits.

Visit Website →

Want to dig deeper into these stocks?