WallStSmart

The Coca-Cola Company (KO)vsWaters Corporation (WAT)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

The Coca-Cola Company generates 1207% more annual revenue ($49.28B vs $3.77B). KO leads profitability with a 27.8% profit margin vs 11.9%. WAT appears more attractively valued with a PEG of 1.52. 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

WAT

Buy

52

out of 100

Grade: C-

Growth: 5.3Profit: 5.5Value: 3.3Quality: 6.8
Piotroski: 4/9Altman Z: 4.92
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
WATSignificantly Overvalued (-63.1%)

Margin of Safety

-63.1%

Fair Value

$201.83

Current Price

$355.13

$153.30 premium

UndervaluedFair: $201.83Overvalued

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

WAT2 strengths · Avg: 10.0/10
Revenue GrowthGrowth
91.5%10/10

Revenue surging 91.5% year-over-year

Altman Z-ScoreHealth
4.9210/10

Safe zone — low bankruptcy risk

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

WAT4 concerns · Avg: 3.3/10
PEG RatioValuation
1.524/10

Expensive relative to growth rate

Price/BookValuation
8.3x4/10

Trading at 8.3x book value

Return on EquityProfitability
5.2%3/10

ROE of 5.2% — below average capital efficiency

P/E RatioValuation
44.6x2/10

Premium valuation, high expectations priced in

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 : WAT

The strongest argument for WAT centers on Revenue Growth, Altman Z-Score. Revenue growth of 91.5% demonstrates continued momentum.

Bear Case : KO

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

Bear Case : WAT

The primary concerns for WAT are PEG Ratio, Price/Book, Return on Equity. A P/E of 44.6x leaves little room for execution misses.

Key Dynamics to Monitor

KO profiles as a mature stock while WAT is a growth play — different risk/reward profiles.

WAT carries more volatility with a beta of 1.14 — expect wider price swings.

WAT is growing revenue faster at 91.5% — 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 52/100), 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.

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Waters Corporation

HEALTHCARE · DIAGNOSTICS & RESEARCH · USA

Waters Corporation is a publicly traded Analytical Laboratory instrument and software company headquartered in Milford, Massachusetts.

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