WallStSmart

Keurig Dr Pepper Inc (KDP)vsThe Coca-Cola Company (KO)

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Smart Verdict

WallStSmart Research — data-driven comparison

The Coca-Cola Company generates 154% more annual revenue ($51.05B vs $20.09B). KO leads profitability with a 28.6% profit margin vs 7.1%. KDP appears more attractively valued with a PEG of 1.08. KO earns a higher WallStSmart Score of 61/100 (C+).

KDP

Buy

61

out of 100

Grade: C+

Growth: 6.0Profit: 5.0Value: 6.7Quality: 4.0
Piotroski: 5/9Altman Z: 1.09

KO

Buy

61

out of 100

Grade: C+

Growth: 5.3Profit: 9.5Value: 3.3Quality: 6.0
Piotroski: 6/9Altman Z: 2.49
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

KDPUndervalued (+62.8%)

Margin of Safety

+62.8%

Fair Value

$80.29

Current Price

$36.82

$43.47 discount

UndervaluedFair: $80.29Overvalued
KOSignificantly Overvalued (-46.0%)

Margin of Safety

-46.0%

Fair Value

$64.44

Current Price

$95.86

$31.42 premium

UndervaluedFair: $64.44Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

KDP2 strengths · Avg: 9.0/10
Revenue GrowthGrowth
75.6%10/10

Revenue surging 75.6% year-over-year

Price/BookValuation
2.0x8/10

Reasonable price relative to book value

KO5 strengths · Avg: 9.4/10
Market CapQuality
$404.72B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
39.6%10/10

Every $100 of equity generates 40 in profit

Operating MarginProfitability
33.4%10/10

Strong operational efficiency at 33.4%

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

KDP4 concerns · Avg: 3.3/10
P/E RatioValuation
35.3x4/10

Premium valuation, high expectations priced in

Return on EquityProfitability
5.7%3/10

ROE of 5.7% — below average capital efficiency

Profit MarginProfitability
7.1%3/10

7.1% margin — thin

Debt/EquityHealth
1.373/10

Elevated debt levels

KO4 concerns · Avg: 3.3/10
P/E RatioValuation
27.8x4/10

Moderate valuation

Price/BookValuation
11.0x4/10

Trading at 11.0x book value

Debt/EquityHealth
1.203/10

Elevated debt levels

PEG RatioValuation
3.962/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : KDP

The strongest argument for KDP centers on Revenue Growth, Price/Book. Revenue growth of 75.6% demonstrates continued momentum. PEG of 1.08 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 33.4%.

Bear Case : KDP

The primary concerns for KDP are P/E Ratio, Return on Equity, Profit Margin.

Bear Case : KO

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

Key Dynamics to Monitor

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

KDP carries more volatility with a beta of 0.41 — expect wider price swings.

KDP is growing revenue faster at 75.6% — sustainability is the question.

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

Bottom Line

KDP scores higher overall (61/100 vs 61/100) and 75.6% revenue growth. 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.

Keurig Dr Pepper Inc

CONSUMER DEFENSIVE · BEVERAGES - NON-ALCOHOLIC · USA

Keurig Dr Pepper Inc. is a beverage company in the United States and internationally. The company is headquartered in Burlington, Massachusetts.

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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