WallStSmart

ELF Beauty Inc (ELF)vsThe Coca-Cola Company (KO)

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Smart Verdict

WallStSmart Research — data-driven comparison

The Coca-Cola Company generates 2745% more annual revenue ($50.13B vs $1.76B). KO leads profitability with a 28.6% profit margin vs 3.4%. ELF appears more attractively valued with a PEG of 1.37. KO earns a higher WallStSmart Score of 61/100 (C+).

ELF

Buy

60

out of 100

Grade: C

Growth: 10.0Profit: 5.0Value: 5.3Quality: 5.0
Piotroski: 1/9Altman Z: 1.47

KO

Buy

61

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

ELFUndervalued (+21.1%)

Margin of Safety

+21.1%

Fair Value

$144.85

Current Price

$115.38

$29.47 discount

UndervaluedFair: $144.85Overvalued
KOSignificantly Overvalued (-46.5%)

Margin of Safety

-46.5%

Fair Value

$63.26

Current Price

$91.88

$28.62 premium

UndervaluedFair: $63.26Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ELF2 strengths · Avg: 10.0/10
Revenue GrowthGrowth
35.5%10/10

Revenue surging 35.5% year-over-year

EPS GrowthGrowth
93.1%10/10

Earnings expanding 93.1% YoY

KO5 strengths · Avg: 9.4/10
Market CapQuality
$404.01B10/10

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

ELF4 concerns · Avg: 2.8/10
Return on EquityProfitability
4.8%3/10

ROE of 4.8% — below average capital efficiency

Profit MarginProfitability
3.4%3/10

3.4% margin — thin

Piotroski F-ScoreQuality
1/93/10

Weak financial health signals

P/E RatioValuation
115.9x2/10

Premium valuation, high expectations priced in

KO4 concerns · Avg: 3.3/10
P/E RatioValuation
28.2x4/10

Moderate valuation

Price/BookValuation
10.9x4/10

Trading at 10.9x book value

Debt/EquityHealth
1.203/10

Elevated debt levels

PEG RatioValuation
4.032/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : ELF

The strongest argument for ELF centers on Revenue Growth, EPS Growth. Revenue growth of 35.5% demonstrates continued momentum. PEG of 1.37 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 28.6% and operating margin at 34.9%.

Bear Case : ELF

The primary concerns for ELF are Return on Equity, Profit Margin, Piotroski F-Score. A P/E of 115.9x leaves little room for execution misses. Thin 3.4% margins leave little buffer for downturns.

Bear Case : KO

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

Key Dynamics to Monitor

ELF profiles as a hypergrowth stock while KO is a mature play — different risk/reward profiles.

ELF carries more volatility with a beta of 1.60 — expect wider price swings.

ELF is growing revenue faster at 35.5% — sustainability is the question.

KO generates stronger free cash flow (5.1B), providing more financial flexibility.

Bottom Line

KO scores higher overall (61/100 vs 60/100), backed by strong 28.6% margins. ELF offers better value entry with a 21.1% margin of safety. 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.

ELF Beauty Inc

CONSUMER DEFENSIVE · HOUSEHOLD & PERSONAL PRODUCTS · USA

elf Beauty, Inc., offers skin care and cosmetic products under the elf, W3LL PEOPLE and Keys Soulcare brand names worldwide. The company is headquartered in Oakland, California.

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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