WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

The Coca-Cola Company generates 812765% more annual revenue ($49.28B vs $6.06M). KO leads profitability with a 27.8% profit margin vs -65.8%. 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

XXII

Avoid

32

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 (-36.4%)

Margin of Safety

-36.4%

Fair Value

$61.70

Current Price

$83.40

$21.70 premium

UndervaluedFair: $61.70Overvalued
XXIIUndervalued (+80.9%)

Margin of Safety

+80.9%

Fair Value

$29.44

Current Price

$4.22

$25.22 discount

UndervaluedFair: $29.44Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

KO5 strengths · Avg: 9.4/10
Market CapQuality
$355.51B10/10

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

XXII2 strengths · Avg: 10.0/10
Price/BookValuation
0.1x10/10

Reasonable price relative to book value

Debt/EquityHealth
0.0610/10

Conservative balance sheet, low leverage

Areas to Watch

KO4 concerns · Avg: 3.3/10
P/E RatioValuation
25.4x4/10

Moderate valuation

Price/BookValuation
10.7x4/10

Trading at 10.7x book value

Debt/EquityHealth
1.303/10

Elevated debt levels

PEG RatioValuation
4.112/10

Expensive relative to growth rate

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

0.0% earnings growth

Market CapQuality
$1.38M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
-103.6%2/10

ROE of -103.6% — below average capital efficiency

Revenue GrowthGrowth
-43.3%2/10

Revenue declined 43.3%

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 : 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 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 32/100), backed by strong 27.8% margins and 12.1% revenue growth. XXII offers better value entry with a 80.9% margin of safety. Both earn "Strong 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.

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22nd Century Group Inc

CONSUMER DEFENSIVE · TOBACCO · USA

22nd Century Group Inc (Ticker: XXII) is a pioneering biopharmaceutical and agricultural firm focused on tobacco harm reduction via advanced genetic engineering. The company is committed to developing low-nicotine tobacco products to mitigate nicotine addiction, thereby promoting better public health outcomes. In addition to its core focus, 22nd Century is strategically expanding into the rapidly evolving hemp and cannabis markets, positioning itself favorably within the burgeoning legal cannabis industry. With a strong emphasis on scientific research and regulatory compliance, 22nd Century emerges as an attractive investment opportunity for institutional investors seeking to engage in transformative and socially responsible sectors.

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