WallStSmart

Colgate-Palmolive Company (CL)vsThe Coca-Cola Company (KO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

The Coca-Cola Company generates 138% more annual revenue ($50.13B vs $21.05B). KO leads profitability with a 28.6% profit margin vs 9.7%. CL appears more attractively valued with a PEG of 1.60. KO earns a higher WallStSmart Score of 63/100 (C+).

CL

Buy

54

out of 100

Grade: C-

Growth: 3.3Profit: 8.5Value: 4.7Quality: 5.5
Piotroski: 4/9Altman Z: 4.21

KO

Buy

63

out of 100

Grade: C+

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

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CLUndervalued (+12.6%)

Margin of Safety

+12.6%

Fair Value

$99.34

Current Price

$86.80

$12.54 discount

UndervaluedFair: $99.34Overvalued
KOSignificantly Overvalued (-40.1%)

Margin of Safety

-40.1%

Fair Value

$63.02

Current Price

$88.29

$25.27 premium

UndervaluedFair: $63.02Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CL4 strengths · Avg: 9.3/10
Return on EquityProfitability
863.1%10/10

Every $100 of equity generates 863 in profit

Altman Z-ScoreHealth
4.2110/10

Safe zone — low bankruptcy risk

Market CapQuality
$69.19B9/10

Large-cap with strong market position

Operating MarginProfitability
21.0%8/10

Strong operational efficiency at 21.0%

KO5 strengths · Avg: 9.4/10
Market CapQuality
$379.87B10/10

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

Areas to Watch

CL4 concerns · Avg: 3.5/10
PEG RatioValuation
1.604/10

Expensive relative to growth rate

P/E RatioValuation
34.6x4/10

Premium valuation, high expectations priced in

Revenue GrowthGrowth
4.9%4/10

4.9% revenue growth

Price/BookValuation
289.3x2/10

Trading at 289.3x book value

KO4 concerns · Avg: 3.3/10
P/E RatioValuation
26.5x4/10

Moderate valuation

Price/BookValuation
10.5x4/10

Trading at 10.5x book value

Debt/EquityHealth
1.203/10

Elevated debt levels

PEG RatioValuation
3.992/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : CL

The strongest argument for CL centers on Return on Equity, Altman Z-Score, Market Cap.

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%.

Bear Case : CL

The primary concerns for CL are PEG Ratio, P/E Ratio, Revenue Growth. Debt-to-equity of 33.29 is elevated, increasing financial risk.

Bear Case : KO

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

Key Dynamics to Monitor

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

KO carries more volatility with a beta of 0.34 — 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 54/100), backed by strong 28.6% margins. Both earn "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.

Colgate-Palmolive Company

CONSUMER DEFENSIVE · HOUSEHOLD & PERSONAL PRODUCTS · USA

Colgate-Palmolive Company is an American multinational consumer products company headquartered on Park Avenue in Midtown Manhattan, New York City. It specializes in the production, distribution and provision of household, health care, personal care and veterinary products.

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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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