WallStSmart

Keurig Dr Pepper Inc (KDP)vsKroger Company (KR)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Kroger Company generates 640% more annual revenue ($148.65B vs $20.09B). KDP leads profitability with a 7.1% profit margin vs 0.7%. KR appears more attractively valued with a PEG of 0.57. KDP 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

KR

Buy

55

out of 100

Grade: C

Growth: 4.0Profit: 5.5Value: 6.7Quality: 5.0
Piotroski: 5/9Altman Z: 3.88
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

KDPUndervalued (+63.3%)

Margin of Safety

+63.3%

Fair Value

$81.33

Current Price

$31.88

$49.45 discount

UndervaluedFair: $81.33Overvalued
KRUndervalued (+21.9%)

Margin of Safety

+21.9%

Fair Value

$72.88

Current Price

$56.92

$15.95 discount

UndervaluedFair: $72.88Overvalued

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
1.7x8/10

Reasonable price relative to book value

KR2 strengths · Avg: 9.0/10
Altman Z-ScoreHealth
3.8810/10

Safe zone — low bankruptcy risk

PEG RatioValuation
0.578/10

Growing faster than its price suggests

Areas to Watch

KDP4 concerns · Avg: 3.3/10
P/E RatioValuation
32.2x4/10

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

KR4 concerns · Avg: 3.5/10
P/E RatioValuation
34.2x4/10

Premium valuation, high expectations priced in

Revenue GrowthGrowth
2.2%4/10

2.2% revenue growth

Profit MarginProfitability
0.7%3/10

0.7% margin — thin

Operating MarginProfitability
3.2%3/10

Operating margin of 3.2%

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 1.09 suggests the stock is reasonably priced for its growth.

Bull Case : KR

The strongest argument for KR centers on Altman Z-Score, PEG Ratio. PEG of 0.57 suggests the stock is reasonably priced for its growth.

Bear Case : KDP

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

Bear Case : KR

The primary concerns for KR are P/E Ratio, Revenue Growth, Profit Margin. Debt-to-equity of 3.63 is elevated, increasing financial risk. Thin 0.7% margins leave little buffer for downturns.

Key Dynamics to Monitor

KDP profiles as a hypergrowth stock while KR is a value 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.

KDP generates stronger free cash flow (714M), providing more financial flexibility.

Bottom Line

KDP scores higher overall (61/100 vs 55/100) and 75.6% revenue growth. KR offers better value entry with a 21.9% 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.

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.

Kroger Company

CONSUMER DEFENSIVE · GROCERY STORES · USA

The Kroger Company, or simply Kroger, is an American retail company founded by Bernard Kroger in 1883 in Cincinnati, Ohio.

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