Kraft Heinz Co (KHC)vsThe Coca-Cola Company (KO)
KHC
Kraft Heinz Co
$25.37
+0.49%
CONSUMER DEFENSIVE · Cap: $28.17B
KO
The Coca-Cola Company
$84.14
+3.51%
CONSUMER DEFENSIVE · Cap: $355.51B
Smart Verdict
WallStSmart Research — data-driven comparison
The Coca-Cola Company generates 97% more annual revenue ($49.28B vs $24.99B). KO leads profitability with a 27.8% profit margin vs -23.1%. KHC appears more attractively valued with a PEG of 0.99. KO earns a higher WallStSmart Score of 65/100 (B-).
KHC
Buy61
out of 100
Grade: C+
KO
Strong Buy65
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+16.0%
Fair Value
$29.75
Current Price
$25.37
$4.38 discount
Margin of Safety
-36.4%
Fair Value
$61.70
Current Price
$84.14
$22.44 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Growing faster than its price suggests
Strong operational efficiency at 20.7%
Mega-cap, among the largest globally
Every $100 of equity generates 41 in profit
Strong operational efficiency at 35.1%
Keeps 28 of every $100 in revenue as profit
Generating 1.8B in free cash flow
Areas to Watch
0.8% revenue growth
ROE of -13.7% — below average capital efficiency
Distress zone — elevated risk
Currently unprofitable
Moderate valuation
Trading at 10.8x book value
Elevated debt levels
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : KHC
The strongest argument for KHC centers on Price/Book, PEG Ratio, Operating Margin. PEG of 0.99 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 27.8% and operating margin at 35.1%. Revenue growth of 12.1% demonstrates continued momentum.
Bear Case : KHC
The primary concerns for KHC are Revenue Growth, Return on Equity, Altman Z-Score.
Bear Case : KO
The primary concerns for KO are P/E Ratio, Price/Book, Debt/Equity.
Key Dynamics to Monitor
KHC profiles as a turnaround stock while KO is a mature play — different risk/reward profiles.
KO carries more volatility with a beta of 0.35 — expect wider price swings.
KO is growing revenue faster at 12.1% — sustainability is the question.
KO generates stronger free cash flow (1.8B), providing more financial flexibility.
Bottom Line
KO scores higher overall (65/100 vs 61/100), backed by strong 27.8% margins and 12.1% revenue growth. KHC offers better value entry with a 16.0% 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.
Kraft Heinz Co
CONSUMER DEFENSIVE · PACKAGED FOODS · USA
The Kraft Heinz Company (KHC), commonly known as Kraft Heinz, is an American food company formed by the merger of Kraft Foods and Heinz, co-headquartered in Chicago, Illinois, and Pittsburgh, Pennsylvania.
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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