Kraft Heinz Co (KHC)vsThe Coca-Cola Company (KO)
KHC
Kraft Heinz Co
$24.82
+0.28%
CONSUMER DEFENSIVE · Cap: $30.25B
KO
The Coca-Cola Company
$88.84
+2.12%
CONSUMER DEFENSIVE · Cap: $374.24B
Smart Verdict
WallStSmart Research — data-driven comparison
The Coca-Cola Company generates 101% more annual revenue ($50.13B vs $24.90B). KO leads profitability with a 28.6% profit margin vs -13.6%. KHC appears more attractively valued with a PEG of 0.99. KO earns a higher WallStSmart Score of 63/100 (C+).
KHC
Buy57
out of 100
Grade: C
KO
Buy63
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+15.1%
Fair Value
$29.43
Current Price
$24.82
$4.61 discount
Margin of Safety
-38.3%
Fair Value
$62.90
Current Price
$88.84
$25.94 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Growing faster than its price suggests
Mega-cap, among the largest globally
Every $100 of equity generates 40 in profit
Strong operational efficiency at 34.9%
Keeps 29 of every $100 in revenue as profit
Generating 5.1B in free cash flow
Areas to Watch
ROE of -9.4% — below average capital efficiency
Revenue declined 1.4%
Distress zone — elevated risk
Currently unprofitable
Moderate valuation
Trading at 10.6x book value
Elevated debt levels
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : KHC
The strongest argument for KHC centers on Price/Book, PEG Ratio. PEG of 0.99 suggests the stock is reasonably priced for its growth.
Bull Case : KO
The strongest argument for KO centers on Market Cap, Return on Equity, Operating Margin. Profitability is solid with margins at 28.6% and operating margin at 34.9%.
Bear Case : KHC
The primary concerns for KHC are Return on Equity, Revenue Growth, Altman Z-Score.
Bear Case : KO
The primary concerns for KO are P/E Ratio, Price/Book, Debt/Equity.
Key Dynamics to Monitor
KHC profiles as a turnaround stock while KO is a mature play — different risk/reward profiles.
KO carries more volatility with a beta of 0.34 — expect wider price swings.
KO is growing revenue faster at 6.7% — sustainability is the question.
KO generates stronger free cash flow (5.1B), providing more financial flexibility.
Bottom Line
KO scores higher overall (63/100 vs 57/100), backed by strong 28.6% margins. KHC offers better value entry with a 15.1% 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.
Kraft Heinz Co
CONSUMER DEFENSIVE · PACKAGED FOODS · USA
The Kraft Heinz Company (KHC), commonly known as Kraft Heinz, is an American food company formed by the merger of Kraft Foods and Heinz, co-headquartered in Chicago, Illinois, and Pittsburgh, Pennsylvania.
The Coca-Cola Company
CONSUMER DEFENSIVE · BEVERAGES - NON-ALCOHOLIC · USA
The Coca-Cola Company is an American multinational beverage corporation incorporated under Delaware's General Corporation Law and headquartered in Atlanta, Georgia. The Coca-Cola Company has interests in the manufacturing, retailing, and marketing of nonalcoholic beverage concentrates and syrups.
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