Kraft Heinz Co (KHC)vsThe Coca-Cola Company (KO)
KHC
Kraft Heinz Co
$22.54
+0.54%
CONSUMER DEFENSIVE · Cap: $26.62B
KO
The Coca-Cola Company
$78.19
+0.37%
CONSUMER DEFENSIVE · Cap: $336.45B
Smart Verdict
WallStSmart Research — data-driven comparison
The Coca-Cola Company generates 98% more annual revenue ($49.28B vs $24.94B). KO leads profitability with a 27.8% profit margin vs -23.4%. KHC appears more attractively valued with a PEG of 0.99. KO earns a higher WallStSmart Score of 65/100 (B-).
KHC
Buy51
out of 100
Grade: C-
KO
Strong Buy65
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+37.6%
Fair Value
$40.03
Current Price
$22.54
$17.49 discount
Margin of Safety
-21.9%
Fair Value
$64.15
Current Price
$78.19
$14.04 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Growing faster than its price suggests
Generating 1.2B in free cash flow
Mega-cap, among the largest globally
Every $100 of equity generates 43 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
ROE of -12.8% — below average capital efficiency
Revenue declined 3.4%
Earnings declined 69.2%
Distress zone — elevated risk
Trading at 10.0x 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, Free Cash Flow. 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 Return on Equity, Revenue Growth, EPS Growth.
Bear Case : KO
The primary concerns for KO are Price/Book, Debt/Equity, PEG Ratio.
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 0.36 — 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 51/100), backed by strong 27.8% margins and 12.1% revenue growth. KHC offers better value entry with a 37.6% 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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