WallStSmart

Kellanova (K)vsThe Coca-Cola Company (KO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

The Coca-Cola Company generates 289% more annual revenue ($49.28B vs $12.67B). KO leads profitability with a 27.8% profit margin vs 0.1%. K appears more attractively valued with a PEG of 3.63. KO earns a higher WallStSmart Score of 65/100 (B-).

K

Buy

50

out of 100

Grade: C-

Growth: 3.3Profit: 4.0Value: 3.3Quality: 5.3
Piotroski: 5/9Altman Z: 2.20

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

KSignificantly Overvalued (-39.6%)

Margin of Safety

-39.6%

Fair Value

$59.76

Current Price

$83.44

$23.68 premium

UndervaluedFair: $59.76Overvalued
KOSignificantly Overvalued (-21.9%)

Margin of Safety

-21.9%

Fair Value

$64.15

Current Price

$78.19

$14.04 premium

UndervaluedFair: $64.15Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

K0 strengths · Avg: 0/10

No standout strengths identified

KO5 strengths · Avg: 9.4/10
Market CapQuality
$336.45B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
43.4%10/10

Every $100 of equity generates 43 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

K4 concerns · Avg: 3.3/10
Revenue GrowthGrowth
0.0%4/10

0.0% revenue growth

Return on EquityProfitability
0.3%3/10

ROE of 0.3% — below average capital efficiency

Profit MarginProfitability
0.1%3/10

0.1% margin — thin

Operating MarginProfitability
0.1%3/10

Operating margin of 0.1%

KO3 concerns · Avg: 3.0/10
Price/BookValuation
10.0x4/10

Trading at 10.0x book value

Debt/EquityHealth
1.413/10

Elevated debt levels

PEG RatioValuation
4.032/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : K

K has a balanced fundamental profile.

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 : K

The primary concerns for K are Revenue Growth, Return on Equity, Profit Margin. Thin 0.1% margins leave little buffer for downturns.

Bear Case : KO

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

Key Dynamics to Monitor

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

KO carries more volatility with a beta of 0.36 — 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 50/100), 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.

Kellanova

CONSUMER DEFENSIVE · PACKAGED FOODS · USA

The Kellogg Company, doing business as Kellogg's, is an American multinational food manufacturing company headquartered in Battle Creek, Michigan, United States.

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?