WallStSmart

The Coca-Cola Company (KO)vsTootsie Roll Industries Inc (TR)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

The Coca-Cola Company generates 6600% more annual revenue ($49.28B vs $735.61M). KO leads profitability with a 27.8% profit margin vs 13.6%. TR appears more attractively valued with a PEG of 3.43. 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

TR

Hold

39

out of 100

Grade: F

Growth: 3.3Profit: 6.0Value: 3.3Quality: 9.0
Piotroski: 5/9Altman Z: 3.03
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

KOSignificantly Overvalued (-42.9%)

Margin of Safety

-42.9%

Fair Value

$61.78

Current Price

$86.55

$24.77 premium

UndervaluedFair: $61.78Overvalued
TRFair Value (-1.8%)

Margin of Safety

-1.8%

Fair Value

$39.29

Current Price

$39.61

$0.32 premium

UndervaluedFair: $39.29Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

KO5 strengths · Avg: 9.4/10
Market CapQuality
$353.32B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
40.7%10/10

Every $100 of equity generates 41 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

TR2 strengths · Avg: 10.0/10
Debt/EquityHealth
0.0110/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
3.0310/10

Safe zone — low bankruptcy risk

Areas to Watch

KO4 concerns · Avg: 3.3/10
P/E RatioValuation
25.9x4/10

Moderate valuation

Price/BookValuation
11.1x4/10

Trading at 11.1x book value

Debt/EquityHealth
1.303/10

Elevated debt levels

PEG RatioValuation
4.012/10

Expensive relative to growth rate

TR4 concerns · Avg: 3.0/10
P/E RatioValuation
31.0x4/10

Premium valuation, high expectations priced in

Revenue GrowthGrowth
2.1%4/10

2.1% revenue growth

PEG RatioValuation
3.432/10

Expensive relative to growth rate

EPS GrowthGrowth
-2.1%2/10

Earnings declined 2.1%

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 : TR

The strongest argument for TR centers on Debt/Equity, Altman Z-Score.

Bear Case : KO

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

Bear Case : TR

The primary concerns for TR are P/E Ratio, Revenue Growth, PEG Ratio.

Key Dynamics to Monitor

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

TR carries more volatility with a beta of 0.39 — 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 39/100), backed by strong 27.8% margins and 12.1% revenue growth. Both earn "Strong Buy" and "Hold" 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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Tootsie Roll Industries Inc

CONSUMER DEFENSIVE · CONFECTIONERS · USA

Tootsie Roll Industries, Inc., manufactures and sells confectionery products primarily in the United States, Canada, Mexico, and internationally. The company is headquartered in Chicago, Illinois.

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