WallStSmart

Keurig Dr Pepper Inc (KDP)vsTarget Corporation (TGT)

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Smart Verdict

WallStSmart Research — data-driven comparison

Target Corporation generates 436% more annual revenue ($107.70B vs $20.09B). KDP leads profitability with a 7.1% profit margin vs 4.1%. KDP appears more attractively valued with a PEG of 0.98. TGT earns a higher WallStSmart Score of 66/100 (B-).

KDP

Buy

63

out of 100

Grade: C+

Growth: 6.0Profit: 5.0Value: 7.3Quality: 4.0
Piotroski: 5/9Altman Z: 1.09

TGT

Strong Buy

66

out of 100

Grade: B-

Growth: 6.0Profit: 6.0Value: 6.0Quality: 4.5
Piotroski: 3/9Altman Z: 2.47
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

KDPUndervalued (+62.8%)

Margin of Safety

+62.8%

Fair Value

$80.29

Current Price

$34.93

$45.36 discount

UndervaluedFair: $80.29Overvalued
TGTUndervalued (+5.4%)

Margin of Safety

+5.4%

Fair Value

$121.20

Current Price

$148.96

$27.76 discount

UndervaluedFair: $121.20Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

KDP3 strengths · Avg: 8.7/10
Revenue GrowthGrowth
75.6%10/10

Revenue surging 75.6% year-over-year

PEG RatioValuation
0.988/10

Growing faster than its price suggests

Price/BookValuation
1.9x8/10

Reasonable price relative to book value

TGT5 strengths · Avg: 8.8/10
EPS GrowthGrowth
100.5%10/10

Earnings expanding 100.5% YoY

Market CapQuality
$70.08B9/10

Large-cap with strong market position

Return on EquityProfitability
24.6%9/10

Every $100 of equity generates 25 in profit

P/E RatioValuation
16.0x8/10

Attractively priced relative to earnings

Free Cash FlowQuality
$2.43B8/10

Generating 2.4B in free cash flow

Areas to Watch

KDP4 concerns · Avg: 3.3/10
P/E RatioValuation
35.0x4/10

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

TGT4 concerns · Avg: 3.3/10
PEG RatioValuation
1.984/10

Expensive relative to growth rate

Profit MarginProfitability
4.1%3/10

4.1% margin — thin

Debt/EquityHealth
1.053/10

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 Revenue Growth, PEG Ratio, Price/Book. Revenue growth of 75.6% demonstrates continued momentum. PEG of 0.98 suggests the stock is reasonably priced for its growth.

Bull Case : TGT

The strongest argument for TGT centers on EPS Growth, Market Cap, Return on Equity.

Bear Case : KDP

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

Bear Case : TGT

The primary concerns for TGT are PEG Ratio, Profit Margin, Debt/Equity. Thin 4.1% margins leave little buffer for downturns.

Key Dynamics to Monitor

KDP profiles as a hypergrowth stock while TGT is a value play — different risk/reward profiles.

TGT carries more volatility with a beta of 0.98 — expect wider price swings.

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

TGT generates stronger free cash flow (2.4B), providing more financial flexibility.

Bottom Line

TGT scores higher overall (66/100 vs 63/100). KDP offers better value entry with a 62.8% 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.

Target Corporation

CONSUMER DEFENSIVE · DISCOUNT STORES · USA

Target Corporation is an American retail corporation. Their retail formats include the discount store Target, the hypermarket SuperTarget, and small-format stores previously named CityTarget and TargetExpress before being consolidated under the Target branding.

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