WallStSmart

The Coca-Cola Company (KO)vs22nd Century Group Inc (XXII)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

The Coca-Cola Company generates 970452% more annual revenue ($50.13B vs $5.17M). KO leads profitability with a 28.6% profit margin vs -76.0%. KO earns a higher WallStSmart Score of 63/100 (C+).

KO

Buy

63

out of 100

Grade: C+

Growth: 6.0Profit: 9.5Value: 3.3Quality: 6.0
Piotroski: 6/9Altman Z: 2.49

XXII

Avoid

31

out of 100

Grade: F

Growth: 2.7Profit: 2.0Value: 6.7Quality: 6.5
Piotroski: 4/9Altman Z: -20.53
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

KOSignificantly Overvalued (-44.7%)

Margin of Safety

-44.7%

Fair Value

$62.95

Current Price

$89.06

$26.11 premium

UndervaluedFair: $62.95Overvalued
XXIIUndervalued (+52.8%)

Margin of Safety

+52.8%

Fair Value

$11.90

Current Price

$3.04

$8.86 discount

UndervaluedFair: $11.90Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

KO5 strengths · Avg: 9.4/10
Market CapQuality
$374.24B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
39.6%10/10

Every $100 of equity generates 40 in profit

Operating MarginProfitability
34.9%10/10

Strong operational efficiency at 34.9%

Profit MarginProfitability
28.6%9/10

Keeps 29 of every $100 in revenue as profit

Free Cash FlowQuality
$5.10B8/10

Generating 5.1B in free cash flow

XXII2 strengths · Avg: 10.0/10
Price/BookValuation
0.0x10/10

Reasonable price relative to book value

Debt/EquityHealth
0.0710/10

Conservative balance sheet, low leverage

Areas to Watch

KO4 concerns · Avg: 3.3/10
P/E RatioValuation
26.1x4/10

Moderate valuation

Price/BookValuation
10.6x4/10

Trading at 10.6x book value

Debt/EquityHealth
1.203/10

Elevated debt levels

PEG RatioValuation
4.232/10

Expensive relative to growth rate

XXII4 concerns · Avg: 2.8/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Market CapQuality
$2.68M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
-103.6%2/10

ROE of -103.6% — below average capital efficiency

Revenue GrowthGrowth
-40.4%2/10

Revenue declined 40.4%

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 28.6% and operating margin at 34.9%.

Bull Case : XXII

The strongest argument for XXII centers on Price/Book, Debt/Equity.

Bear Case : KO

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

Bear Case : XXII

The primary concerns for XXII are EPS Growth, Market Cap, Return on Equity.

Key Dynamics to Monitor

KO profiles as a mature stock while XXII is a turnaround play — different risk/reward profiles.

XXII carries more volatility with a beta of 0.60 — 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

KO scores higher overall (63/100 vs 31/100), backed by strong 28.6% margins. XXII offers better value entry with a 52.8% margin of safety. Both earn "Buy" and "Avoid" 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 →

22nd Century Group Inc

CONSUMER DEFENSIVE · TOBACCO · USA

22nd Century Group Inc (Ticker: XXII) is an innovative biopharmaceutical and agricultural leader dedicated to tobacco harm reduction through advanced genetic engineering. The company specializes in the development of low-nicotine tobacco products aimed at reducing nicotine addiction and enhancing public health. Additionally, 22nd Century is strategically diversifying into the burgeoning hemp and cannabis markets, aligning itself with the rapid growth of the legal cannabis sector. By prioritizing scientific research and regulatory compliance, 22nd Century presents a compelling investment opportunity for institutional investors interested in transformative, socially responsible sectors.

Want to dig deeper into these stocks?