WallStSmart

The Coca-Cola Company (KO)vsRocky Mountain Chocolate Factory (RMCF)

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Smart Verdict

WallStSmart Research — data-driven comparison

The Coca-Cola Company generates 166187% more annual revenue ($49.28B vs $29.64M). KO leads profitability with a 27.8% profit margin vs -13.6%. KO earns a higher WallStSmart Score of 65/100 (B-).

KO

Strong Buy

65

out of 100

Grade: B-

Growth: 6.0Profit: 9.5Value: 3.3Quality: 6.0
Piotroski: 6/9Altman Z: 2.49

RMCF

Avoid

25

out of 100

Grade: F

Growth: 2.7Profit: 2.5Value: 6.7Quality: 4.0
Piotroski: 3/9Altman Z: 0.59
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

KOSignificantly Overvalued (-25.0%)

Margin of Safety

-25.0%

Fair Value

$64.21

Current Price

$80.82

$16.61 premium

UndervaluedFair: $64.21Overvalued
RMCFUndervalued (+59.6%)

Margin of Safety

+59.6%

Fair Value

$6.78

Current Price

$2.13

$4.65 discount

UndervaluedFair: $6.78Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

KO5 strengths · Avg: 9.4/10
Market CapQuality
$345.32B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
43.4%10/10

Every $100 of equity generates 43 in profit

Operating MarginProfitability
35.1%10/10

Strong operational efficiency at 35.1%

Profit MarginProfitability
27.8%9/10

Keeps 28 of every $100 in revenue as profit

Free Cash FlowQuality
$1.75B8/10

Generating 1.8B in free cash flow

RMCF1 strengths · Avg: 8.0/10
Price/BookValuation
2.8x8/10

Reasonable price relative to book value

Areas to Watch

KO4 concerns · Avg: 3.3/10
P/E RatioValuation
25.2x4/10

Moderate valuation

Price/BookValuation
10.3x4/10

Trading at 10.3x book value

Debt/EquityHealth
1.413/10

Elevated debt levels

PEG RatioValuation
4.022/10

Expensive relative to growth rate

RMCF4 concerns · Avg: 3.0/10
Market CapQuality
$23.71M3/10

Smaller company, higher risk/reward

Operating MarginProfitability
1.1%3/10

Operating margin of 1.1%

Debt/EquityHealth
1.543/10

Elevated debt levels

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull Case : KO

The strongest argument for KO centers on Market Cap, Return on Equity, Operating Margin. Profitability is solid with margins at 27.8% and operating margin at 35.1%. Revenue growth of 12.1% demonstrates continued momentum.

Bull Case : RMCF

The strongest argument for RMCF centers on Price/Book.

Bear Case : KO

The primary concerns for KO are P/E Ratio, Price/Book, Debt/Equity.

Bear Case : RMCF

The primary concerns for RMCF are Market Cap, Operating Margin, Debt/Equity. Debt-to-equity of 1.54 is elevated, increasing financial risk.

Key Dynamics to Monitor

KO profiles as a mature stock while RMCF is a turnaround play — different risk/reward profiles.

RMCF carries more volatility with a beta of 0.70 — expect wider price swings.

KO is growing revenue faster at 12.1% — sustainability is the question.

KO generates stronger free cash flow (1.8B), providing more financial flexibility.

Bottom Line

KO scores higher overall (65/100 vs 25/100), backed by strong 27.8% margins and 12.1% revenue growth. RMCF offers better value entry with a 59.6% margin of safety. Both earn "Strong Buy" and "Avoid" 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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Rocky Mountain Chocolate Factory

CONSUMER DEFENSIVE · CONFECTIONERS · USA

Rocky Mountain Chocolate Factory, Inc., is a confectionery franchisor, manufacturer and retail operator. The company is headquartered in Durango, Colorado.

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