WallStSmart

Keurig Dr Pepper Inc (KDP)vsSprouts Farmers Market LLC (SFM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Keurig Dr Pepper Inc generates 90% more annual revenue ($16.94B vs $8.90B). KDP leads profitability with a 10.8% profit margin vs 5.7%. KDP appears more attractively valued with a PEG of 0.97. KDP earns a higher WallStSmart Score of 61/100 (C+).

KDP

Buy

61

out of 100

Grade: C+

Growth: 4.7Profit: 6.0Value: 8.0Quality: 4.3
Piotroski: 5/9Altman Z: 1.06

SFM

Buy

54

out of 100

Grade: C-

Growth: 4.7Profit: 7.0Value: 8.0Quality: 5.0
Piotroski: 3/9Altman Z: 3.14
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

KDPUndervalued (+59.2%)

Margin of Safety

+59.2%

Fair Value

$73.28

Current Price

$28.92

$44.36 discount

UndervaluedFair: $73.28Overvalued
SFMUndervalued (+55.2%)

Margin of Safety

+55.2%

Fair Value

$146.67

Current Price

$80.69

$65.98 discount

UndervaluedFair: $146.67Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

KDP2 strengths · Avg: 8.0/10
PEG RatioValuation
0.978/10

Growing faster than its price suggests

Price/BookValuation
1.5x8/10

Reasonable price relative to book value

SFM3 strengths · Avg: 9.3/10
Return on EquityProfitability
37.3%10/10

Every $100 of equity generates 37 in profit

Altman Z-ScoreHealth
3.1410/10

Safe zone — low bankruptcy risk

P/E RatioValuation
15.6x8/10

Attractively priced relative to earnings

Areas to Watch

KDP3 concerns · Avg: 2.3/10
Return on EquityProfitability
6.3%3/10

ROE of 6.3% — below average capital efficiency

EPS GrowthGrowth
-47.7%2/10

Earnings declined 47.7%

Altman Z-ScoreHealth
1.062/10

Distress zone — elevated risk

SFM4 concerns · Avg: 3.3/10
Revenue GrowthGrowth
4.1%4/10

4.1% revenue growth

Profit MarginProfitability
5.7%3/10

5.7% margin — thin

Debt/EquityHealth
1.393/10

Elevated debt levels

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull Case : KDP

The strongest argument for KDP centers on PEG Ratio, Price/Book. PEG of 0.97 suggests the stock is reasonably priced for its growth.

Bull Case : SFM

The strongest argument for SFM centers on Return on Equity, Altman Z-Score, P/E Ratio. PEG of 1.12 suggests the stock is reasonably priced for its growth.

Bear Case : KDP

The primary concerns for KDP are Return on Equity, EPS Growth, Altman Z-Score.

Bear Case : SFM

The primary concerns for SFM are Revenue Growth, Profit Margin, Debt/Equity.

Key Dynamics to Monitor

SFM carries more volatility with a beta of 0.67 — expect wider price swings.

KDP is growing revenue faster at 9.4% — sustainability is the question.

KDP generates stronger free cash flow (165M), providing more financial flexibility.

Monitor BEVERAGES - NON-ALCOHOLIC industry trends, competitive dynamics, and regulatory changes.

Bottom Line

KDP scores higher overall (61/100 vs 54/100). SFM offers better value entry with a 55.2% 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.

Sprouts Farmers Market LLC

CONSUMER DEFENSIVE · GROCERY STORES · USA

Sprouts Farmers Market, Inc. offers fresh, natural and organic food products in the United States. The company is headquartered in Phoenix, Arizona.

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