Coty Inc (COTY)vsThe Coca-Cola Company (KO)
COTY
Coty Inc
$1.96
+5.95%
CONSUMER DEFENSIVE · Cap: $1.82B
KO
The Coca-Cola Company
$79.48
+0.11%
CONSUMER DEFENSIVE · Cap: $338.86B
Smart Verdict
WallStSmart Research — data-driven comparison
The Coca-Cola Company generates 751% more annual revenue ($49.28B vs $5.79B). KO leads profitability with a 27.8% profit margin vs -9.2%. COTY appears more attractively valued with a PEG of 0.18. KO earns a higher WallStSmart Score of 65/100 (B-).
COTY
Hold43
out of 100
Grade: D
KO
Strong Buy65
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+64.7%
Fair Value
$7.16
Current Price
$1.96
$5.20 discount
Margin of Safety
-29.0%
Fair Value
$61.61
Current Price
$79.48
$17.87 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Growing faster than its price suggests
Reasonable price relative to book value
Mega-cap, among the largest globally
Every $100 of equity generates 41 in profit
Strong operational efficiency at 35.1%
Keeps 28 of every $100 in revenue as profit
Generating 1.8B in free cash flow
Areas to Watch
Smaller company, higher risk/reward
Elevated debt levels
ROE of -17.2% — below average capital efficiency
Revenue declined 1.3%
Trading at 10.2x book value
Elevated debt levels
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : COTY
The strongest argument for COTY centers on PEG Ratio, Price/Book. PEG of 0.18 suggests the stock is reasonably priced for its growth.
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 : COTY
The primary concerns for COTY are Market Cap, Debt/Equity, Return on Equity.
Bear Case : KO
The primary concerns for KO are Price/Book, Debt/Equity, PEG Ratio.
Key Dynamics to Monitor
COTY profiles as a turnaround stock while KO is a mature play — different risk/reward profiles.
COTY carries more volatility with a beta of 1.00 — 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 43/100), backed by strong 27.8% margins and 12.1% revenue growth. COTY offers better value entry with a 64.7% margin of safety. Both earn "Strong Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Coty Inc
CONSUMER DEFENSIVE · HOUSEHOLD & PERSONAL PRODUCTS · USA
Coty Inc., manufactures, markets, distributes and sells beauty products worldwide. The company is headquartered in New York, New York.
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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