WallStSmart

The Coca-Cola Company (KO)vsRio Tinto ADR (RIO)

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Smart Verdict

WallStSmart Research — data-driven comparison

Rio Tinto ADR generates 20% more annual revenue ($57.64B vs $47.94B). KO leads profitability with a 27.3% profit margin vs 17.3%. KO appears more attractively valued with a PEG of 2.33. KO earns a higher WallStSmart Score of 57/100 (C).

KO

Buy

57

out of 100

Grade: C

Growth: 4.0Profit: 9.0Value: 7.3Quality: 7.5
Piotroski: 6/9Altman Z: 2.49

RIO

Buy

54

out of 100

Grade: C-

Growth: 6.0Profit: 8.0Value: 4.7Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

KOSignificantly Overvalued (-97.1%)

Margin of Safety

-97.1%

Fair Value

$38.18

Current Price

$75.25

$37.07 premium

UndervaluedFair: $38.18Overvalued
RIOSignificantly Overvalued (-136.9%)

Margin of Safety

-136.9%

Fair Value

$41.41

Current Price

$87.54

$46.13 premium

UndervaluedFair: $41.41Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

KO5 strengths · Avg: 9.0/10
Market CapQuality
$321.39B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
43.3%10/10

Every $100 of equity generates 43 in profit

Profit MarginProfitability
27.3%9/10

Keeps 27 of every $100 in revenue as profit

Operating MarginProfitability
24.7%8/10

Strong operational efficiency at 24.7%

Free Cash FlowQuality
$2.87B8/10

Generating 2.9B in free cash flow

RIO5 strengths · Avg: 8.2/10
Market CapQuality
$139.55B9/10

Large-cap with strong market position

P/E RatioValuation
14.1x8/10

Attractively priced relative to earnings

Price/BookValuation
2.3x8/10

Reasonable price relative to book value

Operating MarginProfitability
25.3%8/10

Strong operational efficiency at 25.3%

Free Cash FlowQuality
$2.53B8/10

Generating 2.5B in free cash flow

Areas to Watch

KO4 concerns · Avg: 4.0/10
PEG RatioValuation
2.334/10

Expensive relative to growth rate

Price/BookValuation
10.1x4/10

Trading at 10.1x book value

Revenue GrowthGrowth
2.4%4/10

2.4% revenue growth

EPS GrowthGrowth
3.6%4/10

3.6% earnings growth

RIO2 concerns · Avg: 2.0/10
PEG RatioValuation
5.692/10

Expensive relative to growth rate

EPS GrowthGrowth
-5.6%2/10

Earnings declined 5.6%

Comparative Analysis Report

WallStSmart Research

Bull Case : KO

The strongest argument for KO centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 27.3% and operating margin at 24.7%.

Bull Case : RIO

The strongest argument for RIO centers on Market Cap, P/E Ratio, Price/Book. Profitability is solid with margins at 17.3% and operating margin at 25.3%. Revenue growth of 14.6% demonstrates continued momentum.

Bear Case : KO

The primary concerns for KO are PEG Ratio, Price/Book, Revenue Growth.

Bear Case : RIO

The primary concerns for RIO are PEG Ratio, EPS Growth.

Key Dynamics to Monitor

KO profiles as a value stock while RIO is a mature play — different risk/reward profiles.

RIO carries more volatility with a beta of 0.65 — expect wider price swings.

RIO is growing revenue faster at 14.6% — sustainability is the question.

KO generates stronger free cash flow (2.9B), providing more financial flexibility.

Bottom Line

KO scores higher overall (57/100 vs 54/100), backed by strong 27.3% 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.

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Rio Tinto ADR

BASIC MATERIALS · OTHER INDUSTRIAL METALS & MINING · USA

Rio Tinto Group is dedicated to the exploration, extraction and processing of mineral resources worldwide. The company is headquartered in London, the United Kingdom.

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