Keurig Dr Pepper Inc (KDP)vsConstellation Brands Inc Class A (STZ)
KDP
Keurig Dr Pepper Inc
$31.45
+1.19%
CONSUMER DEFENSIVE · Cap: $42.05B
STZ
Constellation Brands Inc Class A
$131.75
-0.20%
CONSUMER DEFENSIVE · Cap: $22.69B
Smart Verdict
WallStSmart Research — data-driven comparison
Keurig Dr Pepper Inc generates 87% more annual revenue ($16.94B vs $9.06B). STZ leads profitability with a 20.1% profit margin vs 10.8%. KDP appears more attractively valued with a PEG of 1.03. STZ earns a higher WallStSmart Score of 72/100 (B).
KDP
Buy59
out of 100
Grade: C
STZ
Strong Buy72
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+56.7%
Fair Value
$68.96
Current Price
$31.45
$37.51 discount
Intrinsic value data unavailable for STZ.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Strong operational efficiency at 35.9%
Every $100 of equity generates 22 in profit
Keeps 20 of every $100 in revenue as profit
Attractively priced relative to earnings
Reasonable price relative to book value
Earnings expanding 30.7% YoY
Areas to Watch
ROE of 7.3% — below average capital efficiency
Elevated debt levels
Earnings declined 47.7%
Distress zone — elevated risk
Elevated debt levels
Expensive relative to growth rate
Revenue declined 3.3%
Comparative Analysis Report
WallStSmart ResearchBull Case : KDP
The strongest argument for KDP centers on Price/Book. PEG of 1.03 suggests the stock is reasonably priced for its growth.
Bull Case : STZ
The strongest argument for STZ centers on Operating Margin, Return on Equity, Profit Margin. Profitability is solid with margins at 20.1% and operating margin at 35.9%.
Bear Case : KDP
The primary concerns for KDP are Return on Equity, Debt/Equity, EPS Growth.
Bear Case : STZ
The primary concerns for STZ are Debt/Equity, PEG Ratio, Revenue Growth.
Key Dynamics to Monitor
KDP profiles as a value 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 9.4% — sustainability is the question.
STZ generates stronger free cash flow (485M), providing more financial flexibility.
Bottom Line
STZ scores higher overall (72/100 vs 59/100), backed by strong 20.1% margins. KDP offers better value entry with a 56.7% 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.
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