The Coca-Cola Company (KO)vsTarget Corporation (TGT)
KO
The Coca-Cola Company
$91.88
+0.60%
CONSUMER DEFENSIVE · Cap: $404.01B
TGT
Target Corporation
$148.96
+0.64%
CONSUMER DEFENSIVE · Cap: $70.08B
Smart Verdict
WallStSmart Research — data-driven comparison
Target Corporation generates 115% more annual revenue ($107.70B vs $50.13B). KO leads profitability with a 28.6% profit margin vs 4.1%. TGT appears more attractively valued with a PEG of 1.98. TGT earns a higher WallStSmart Score of 66/100 (B-).
KO
Buy61
out of 100
Grade: C+
TGT
Strong Buy66
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-46.5%
Fair Value
$63.26
Current Price
$91.88
$28.62 premium
Margin of Safety
+5.4%
Fair Value
$121.20
Current Price
$148.96
$27.76 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 40 in profit
Strong operational efficiency at 34.9%
Keeps 29 of every $100 in revenue as profit
Generating 5.1B in free cash flow
Earnings expanding 100.5% YoY
Large-cap with strong market position
Every $100 of equity generates 25 in profit
Attractively priced relative to earnings
Generating 2.4B in free cash flow
Areas to Watch
Moderate valuation
Trading at 10.9x book value
Elevated debt levels
Expensive relative to growth rate
Expensive relative to growth rate
4.1% margin — thin
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 EPS Growth, 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 PEG Ratio, Profit Margin, Debt/Equity. Thin 4.1% 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 0.98 — expect wider price swings.
KO is growing revenue faster at 6.7% — sustainability is the question.
KO generates stronger free cash flow (5.1B), providing more financial flexibility.
Bottom Line
TGT scores higher overall (66/100 vs 61/100). Both earn "Strong 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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