The Coca-Cola Company (KO)vsTarget Corporation (TGT)
KO
The Coca-Cola Company
$87.05
+0.23%
CONSUMER DEFENSIVE · Cap: $373.59B
TGT
Target Corporation
$149.70
+1.78%
CONSUMER DEFENSIVE · Cap: $65.63B
Smart Verdict
WallStSmart Research — data-driven comparison
Target Corporation generates 112% more annual revenue ($106.38B vs $50.13B). KO leads profitability with a 28.6% profit margin vs 3.2%. TGT appears more attractively valued with a PEG of 2.68. KO earns a higher WallStSmart Score of 63/100 (C+).
KO
Buy63
out of 100
Grade: C+
TGT
Buy52
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-38.2%
Fair Value
$62.84
Current Price
$87.05
$24.21 premium
Margin of Safety
+4.0%
Fair Value
$119.36
Current Price
$149.70
$30.34 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 41 in profit
Strong operational efficiency at 34.9%
Keeps 29 of every $100 in revenue as profit
Generating 1.8B in free cash flow
Large-cap with strong market position
Every $100 of equity generates 21 in profit
Areas to Watch
Moderate valuation
Trading at 10.4x book value
Elevated debt levels
Expensive relative to growth rate
3.2% margin — thin
Operating margin of 4.5%
Elevated debt levels
Weak financial health signals
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 34.9%.
Bull Case : TGT
The strongest argument for TGT centers on Market Cap, Return on Equity.
Bear Case : KO
The primary concerns for KO are P/E Ratio, Price/Book, Debt/Equity.
Bear Case : TGT
The primary concerns for TGT are Profit Margin, Operating Margin, Debt/Equity. Thin 3.2% margins leave little buffer for downturns.
Key Dynamics to Monitor
KO profiles as a mature stock while TGT is a value play — different risk/reward profiles.
TGT carries more volatility with a beta of 0.97 — expect wider price swings.
TGT is growing revenue faster at 6.7% — sustainability is the question.
KO generates stronger free cash flow (1.8B), providing more financial flexibility.
Bottom Line
KO scores higher overall (63/100 vs 52/100), 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 →Target Corporation
CONSUMER DEFENSIVE · DISCOUNT STORES · USA
Target Corporation is an American retail corporation. Their retail formats include the discount store Target, the hypermarket SuperTarget, and small-format stores previously named CityTarget and TargetExpress before being consolidated under the Target branding.
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