The Coca-Cola Company (KO)vsKroger Company (KR)
KO
The Coca-Cola Company
$89.06
-1.13%
CONSUMER DEFENSIVE · Cap: $374.24B
KR
Kroger Company
$56.93
-2.70%
CONSUMER DEFENSIVE · Cap: $36.20B
Smart Verdict
WallStSmart Research — data-driven comparison
Kroger Company generates 197% more annual revenue ($148.65B vs $50.13B). KO leads profitability with a 28.6% profit margin vs 0.7%. KR appears more attractively valued with a PEG of 0.57. KO earns a higher WallStSmart Score of 63/100 (C+).
KO
Buy63
out of 100
Grade: C+
KR
Buy55
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-44.7%
Fair Value
$62.95
Current Price
$89.06
$26.11 premium
Margin of Safety
+21.9%
Fair Value
$72.88
Current Price
$56.92
$15.95 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 40 in profit
Strong operational efficiency at 34.9%
Keeps 29 of every $100 in revenue as profit
Generating 5.1B in free cash flow
Safe zone — low bankruptcy risk
Growing faster than its price suggests
Areas to Watch
Moderate valuation
Trading at 10.6x book value
Elevated debt levels
Expensive relative to growth rate
Premium valuation, high expectations priced in
2.2% revenue growth
0.7% margin — thin
Operating margin of 3.2%
Comparative Analysis Report
WallStSmart ResearchBull Case : KO
The strongest argument for KO centers on Market Cap, Return on Equity, Operating Margin. Profitability is solid with margins at 28.6% and operating margin at 34.9%.
Bull Case : KR
The strongest argument for KR centers on Altman Z-Score, PEG Ratio. PEG of 0.57 suggests the stock is reasonably priced for its growth.
Bear Case : KO
The primary concerns for KO are P/E Ratio, Price/Book, Debt/Equity.
Bear Case : KR
The primary concerns for KR are P/E Ratio, Revenue Growth, Profit Margin. Debt-to-equity of 3.63 is elevated, increasing financial risk. Thin 0.7% margins leave little buffer for downturns.
Key Dynamics to Monitor
KO profiles as a mature stock while KR is a value play — different risk/reward profiles.
KR carries more volatility with a beta of 0.41 — expect wider price swings.
KO is growing revenue faster at 6.7% — sustainability is the question.
KO generates stronger free cash flow (5.1B), providing more financial flexibility.
Bottom Line
KO scores higher overall (63/100 vs 55/100), backed by strong 28.6% margins. KR offers better value entry with a 21.9% 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.
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.
Visit Website →Kroger Company
CONSUMER DEFENSIVE · GROCERY STORES · USA
The Kroger Company, or simply Kroger, is an American retail company founded by Bernard Kroger in 1883 in Cincinnati, Ohio.
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