The Coca-Cola Company (KO)vsSpotify Technology SA (SPOT)
KO
The Coca-Cola Company
$75.25
+0.78%
CONSUMER DEFENSIVE · Cap: $321.39B
SPOT
Spotify Technology SA
$473.21
-2.40%
COMMUNICATION SERVICES · Cap: $99.82B
Smart Verdict
WallStSmart Research — data-driven comparison
The Coca-Cola Company generates 179% more annual revenue ($47.94B vs $17.19B). KO leads profitability with a 27.3% profit margin vs 12.9%. SPOT appears more attractively valued with a PEG of 1.99. SPOT earns a higher WallStSmart Score of 62/100 (C+).
KO
Buy57
out of 100
Grade: C
SPOT
Buy62
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-97.1%
Fair Value
$38.18
Current Price
$75.25
$37.07 premium
Margin of Safety
+13.1%
Fair Value
$560.66
Current Price
$473.21
$87.45 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 43 in profit
Keeps 27 of every $100 in revenue as profit
Strong operational efficiency at 24.7%
Generating 2.9B in free cash flow
Every $100 of equity generates 32 in profit
Large-cap with strong market position
Conservative balance sheet, low leverage
Areas to Watch
Expensive relative to growth rate
Trading at 10.1x book value
2.4% revenue growth
3.6% earnings growth
Expensive relative to growth rate
Trading at 10.1x book value
2.1% earnings growth
Premium valuation, high expectations priced in
Comparative Analysis Report
WallStSmart ResearchBull 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 : SPOT
The strongest argument for SPOT centers on Return on Equity, Market Cap, Debt/Equity.
Bear Case : KO
The primary concerns for KO are PEG Ratio, Price/Book, Revenue Growth.
Bear Case : SPOT
The primary concerns for SPOT are PEG Ratio, Price/Book, EPS Growth. A P/E of 40.5x leaves little room for execution misses.
Key Dynamics to Monitor
SPOT carries more volatility with a beta of 1.72 — expect wider price swings.
SPOT is growing revenue faster at 6.8% — sustainability is the question.
KO generates stronger free cash flow (2.9B), providing more financial flexibility.
Monitor BEVERAGES - NON-ALCOHOLIC industry trends, competitive dynamics, and regulatory changes.
Bottom Line
SPOT scores higher overall (62/100 vs 57/100). 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 →Spotify Technology SA
COMMUNICATION SERVICES · INTERNET CONTENT & INFORMATION · USA
Spotify Technology SA, provides audio streaming services worldwide. The company is headquartered in Luxembourg, Luxembourg.
Compare with Other BEVERAGES - NON-ALCOHOLIC Stocks
Want to dig deeper into these stocks?