Keurig Dr Pepper Inc (KDP)vsConstellation Brands Inc Class A (STZ)
KDP
Keurig Dr Pepper Inc
$31.39
-0.22%
CONSUMER DEFENSIVE · Cap: $44.29B
STZ
Constellation Brands Inc Class A
$122.45
-1.10%
CONSUMER DEFENSIVE · Cap: $20.66B
Smart Verdict
WallStSmart Research — data-driven comparison
Keurig Dr Pepper Inc generates 122% more annual revenue ($20.09B vs $9.06B). STZ leads profitability with a 20.1% profit margin vs 7.1%. KDP appears more attractively valued with a PEG of 1.01. STZ earns a higher WallStSmart Score of 74/100 (B).
KDP
Buy61
out of 100
Grade: C+
STZ
Strong Buy74
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+63.1%
Fair Value
$81.12
Current Price
$31.39
$49.73 discount
Intrinsic value data unavailable for STZ.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Revenue surging 75.6% year-over-year
Reasonable price relative to book value
Attractively priced relative to earnings
Strong operational efficiency at 35.9%
Every $100 of equity generates 22 in profit
Keeps 20 of every $100 in revenue as profit
Reasonable price relative to book value
Earnings expanding 30.7% YoY
Areas to Watch
Premium valuation, high expectations priced in
ROE of 5.7% — below average capital efficiency
7.1% margin — thin
Elevated debt levels
Expensive relative to growth rate
Elevated debt levels
Revenue declined 3.3%
Comparative Analysis Report
WallStSmart ResearchBull Case : KDP
The strongest argument for KDP centers on Revenue Growth, Price/Book. Revenue growth of 75.6% demonstrates continued momentum. PEG of 1.01 suggests the stock is reasonably priced for its growth.
Bull Case : STZ
The strongest argument for STZ centers on P/E Ratio, Operating Margin, Return on Equity. Profitability is solid with margins at 20.1% and operating margin at 35.9%.
Bear Case : KDP
The primary concerns for KDP are P/E Ratio, Return on Equity, Profit Margin.
Bear Case : STZ
The primary concerns for STZ are PEG Ratio, Debt/Equity, Revenue Growth.
Key Dynamics to Monitor
KDP profiles as a hypergrowth stock while STZ is a declining 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
STZ scores higher overall (74/100 vs 61/100), backed by strong 20.1% margins. KDP offers better value entry with a 63.1% margin of safety. 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.
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.
Constellation Brands Inc Class A
CONSUMER DEFENSIVE · BEVERAGES - BREWERS · USA
Constellation Brands, Inc., headquartered in Victor, New York, is an American producer and marketer of beer, wine, and spirits.
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