The Coca-Cola Company (KO)vsPriceSmart Inc (PSMT)
KO
The Coca-Cola Company
$95.67
-0.06%
CONSUMER DEFENSIVE · Cap: $404.72B
PSMT
PriceSmart Inc
$162.46
-0.06%
CONSUMER DEFENSIVE · Cap: $5.11B
Smart Verdict
WallStSmart Research — data-driven comparison
The Coca-Cola Company generates 769% more annual revenue ($51.05B vs $5.88B). KO leads profitability with a 28.6% profit margin vs 2.8%. PSMT appears more attractively valued with a PEG of 1.83. KO earns a higher WallStSmart Score of 61/100 (C+).
KO
Buy61
out of 100
Grade: C+
PSMT
Buy56
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-48.3%
Fair Value
$64.51
Current Price
$95.67
$31.16 premium
Margin of Safety
-15.8%
Fair Value
$143.06
Current Price
$162.46
$19.40 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 39 in profit
Strong operational efficiency at 33.4%
Keeps 29 of every $100 in revenue as profit
Generating 4.5B in free cash flow
Conservative balance sheet, low leverage
Areas to Watch
Moderate valuation
Trading at 11.0x book value
Elevated debt levels
Expensive relative to growth rate
Expensive relative to growth rate
Premium valuation, high expectations priced in
2.8% margin — thin
Operating margin of 3.9%
Comparative Analysis Report
WallStSmart ResearchBull 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 33.4%.
Bull Case : PSMT
The strongest argument for PSMT centers on Debt/Equity. Revenue growth of 13.9% demonstrates continued momentum.
Bear Case : KO
The primary concerns for KO are P/E Ratio, Price/Book, Debt/Equity.
Bear Case : PSMT
The primary concerns for PSMT are PEG Ratio, P/E Ratio, Profit Margin. Thin 2.8% margins leave little buffer for downturns.
Key Dynamics to Monitor
KO profiles as a mature stock while PSMT is a value play — different risk/reward profiles.
PSMT carries more volatility with a beta of 0.74 — expect wider price swings.
PSMT is growing revenue faster at 13.9% — sustainability is the question.
KO generates stronger free cash flow (4.5B), providing more financial flexibility.
Bottom Line
KO scores higher overall (61/100 vs 56/100), backed by strong 28.6% margins. 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.
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.
Visit Website →PriceSmart Inc
CONSUMER DEFENSIVE · DISCOUNT STORES · USA
PriceSmart, Inc. owns and operates American-style membership shopping warehouse clubs in Central America, the Caribbean and Colombia. The company is headquartered in San Diego, California.
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