WallStSmart

Brown-Forman Corporation (BF-B)vsThe Coca-Cola Company (KO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

The Coca-Cola Company generates 1155% more annual revenue ($49.28B vs $3.93B). KO leads profitability with a 27.8% profit margin vs 18.2%. KO appears more attractively valued with a PEG of 4.01. KO earns a higher WallStSmart Score of 65/100 (B-).

BF-B

Buy

54

out of 100

Grade: C-

Growth: 2.7Profit: 8.0Value: 5.0Quality: 6.8
Piotroski: 5/9

KO

Strong Buy

65

out of 100

Grade: B-

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

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for BF-B.

KOSignificantly Overvalued (-42.9%)

Margin of Safety

-42.9%

Fair Value

$61.78

Current Price

$88.52

$26.74 premium

UndervaluedFair: $61.78Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

BF-B2 strengths · Avg: 8.0/10
P/E RatioValuation
17.1x8/10

Attractively priced relative to earnings

Operating MarginProfitability
23.3%8/10

Strong operational efficiency at 23.3%

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

Areas to Watch

BF-B3 concerns · Avg: 2.7/10
Revenue GrowthGrowth
2.0%4/10

2.0% revenue growth

PEG RatioValuation
4.222/10

Expensive relative to growth rate

EPS GrowthGrowth
-62.7%2/10

Earnings declined 62.7%

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

Moderate valuation

Price/BookValuation
11.3x4/10

Trading at 11.3x book value

Debt/EquityHealth
1.303/10

Elevated debt levels

PEG RatioValuation
4.012/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : BF-B

The strongest argument for BF-B centers on P/E Ratio, Operating Margin. Profitability is solid with margins at 18.2% and operating margin at 23.3%.

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.

Bear Case : BF-B

The primary concerns for BF-B are Revenue Growth, PEG Ratio, EPS Growth.

Bear Case : KO

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

Key Dynamics to Monitor

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

KO carries more volatility with a beta of 0.35 — 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 54/100), 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.

Brown-Forman Corporation

CONSUMER DEFENSIVE · BEVERAGES - WINERIES & DISTILLERIES · USA

The Brown Forman Corporation is one of the largest American-owned companies in the spirits and wine business. Based in Louisville, Kentucky, it manufactures several well known brands throughout the world, including Jack Daniel's, Early Times, Old Forester, Woodford Reserve, GlenDronach, BenRiach, Glenglassaugh, Finlandia, Herradura, Korbel, and Chambord.

Visit Website →

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 →

Want to dig deeper into these stocks?