WallStSmart

The Coca-Cola Company (KO)vsUnion Pacific Corporation (UNP)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

The Coca-Cola Company generates 100% more annual revenue ($49.28B vs $24.70B). UNP leads profitability with a 29.2% profit margin vs 27.8%. UNP appears more attractively valued with a PEG of 3.30. 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

UNP

Buy

60

out of 100

Grade: C

Growth: 4.0Profit: 9.5Value: 3.3Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

KOSignificantly Overvalued (-22.2%)

Margin of Safety

-22.2%

Fair Value

$64.19

Current Price

$78.42

$14.23 premium

UndervaluedFair: $64.19Overvalued
UNPSignificantly Overvalued (-76.6%)

Margin of Safety

-76.6%

Fair Value

$150.01

Current Price

$264.65

$114.64 premium

UndervaluedFair: $150.01Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

KO5 strengths · Avg: 9.4/10
Market CapQuality
$337.40B10/10

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

UNP5 strengths · Avg: 9.2/10
Return on EquityProfitability
40.7%10/10

Every $100 of equity generates 41 in profit

Operating MarginProfitability
40.4%10/10

Strong operational efficiency at 40.4%

Market CapQuality
$157.27B9/10

Large-cap with strong market position

Profit MarginProfitability
29.2%9/10

Keeps 29 of every $100 in revenue as profit

Free Cash FlowQuality
$1.50B8/10

Generating 1.5B in free cash flow

Areas to Watch

KO3 concerns · Avg: 3.0/10
Price/BookValuation
10.0x4/10

Trading at 10.0x book value

Debt/EquityHealth
1.413/10

Elevated debt levels

PEG RatioValuation
4.032/10

Expensive relative to growth rate

UNP3 concerns · Avg: 3.3/10
Price/BookValuation
8.5x4/10

Trading at 8.5x book value

Revenue GrowthGrowth
3.2%4/10

3.2% revenue growth

PEG RatioValuation
3.302/10

Expensive relative to growth rate

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 : UNP

The strongest argument for UNP centers on Return on Equity, Operating Margin, Market Cap. Profitability is solid with margins at 29.2% and operating margin at 40.4%.

Bear Case : KO

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

Bear Case : UNP

The primary concerns for UNP are Price/Book, Revenue Growth, PEG Ratio.

Key Dynamics to Monitor

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

UNP carries more volatility with a beta of 0.99 — 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 60/100), backed by strong 27.8% margins and 12.1% revenue growth. 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 →

Union Pacific Corporation

INDUSTRIALS · RAILROADS · USA

The Union Pacific Corporation (Union Pacific) is a publicly traded railroad holding company. It was incorporated in Utah in 1969 and is headquartered in Omaha, Nebraska. It is the parent company of the current, Delaware-registered, form of the Union Pacific Railroad.

Want to dig deeper into these stocks?