WallStSmart

The Coca-Cola Company (KO)vsLifeway Foods Inc (LWAY)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

The Coca-Cola Company generates 20580% more annual revenue ($50.13B vs $242.41M). KO leads profitability with a 28.6% profit margin vs 4.5%. LWAY appears more attractively valued with a PEG of 3.50. KO earns a higher WallStSmart Score of 63/100 (C+).

KO

Buy

63

out of 100

Grade: C+

Growth: 6.0Profit: 9.5Value: 3.3Quality: 6.0
Piotroski: 6/9Altman Z: 2.49

LWAY

Hold

43

out of 100

Grade: D

Growth: 6.0Profit: 5.5Value: 3.7Quality: 8.0
Piotroski: 3/9Altman Z: 6.64
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

KOSignificantly Overvalued (-40.1%)

Margin of Safety

-40.1%

Fair Value

$63.02

Current Price

$89.36

$26.34 premium

UndervaluedFair: $63.02Overvalued

Intrinsic value data unavailable for LWAY.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

KO5 strengths · Avg: 9.4/10
Market CapQuality
$379.87B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
39.6%10/10

Every $100 of equity generates 40 in profit

Operating MarginProfitability
34.9%10/10

Strong operational efficiency at 34.9%

Profit MarginProfitability
28.6%9/10

Keeps 29 of every $100 in revenue as profit

Free Cash FlowQuality
$5.10B8/10

Generating 5.1B in free cash flow

LWAY3 strengths · Avg: 9.0/10
Altman Z-ScoreHealth
6.6410/10

Safe zone — low bankruptcy risk

Debt/EquityHealth
0.279/10

Conservative balance sheet, low leverage

Revenue GrowthGrowth
24.1%8/10

Revenue surging 24.1% year-over-year

Areas to Watch

KO4 concerns · Avg: 3.3/10
P/E RatioValuation
26.5x4/10

Moderate valuation

Price/BookValuation
10.6x4/10

Trading at 10.6x book value

Debt/EquityHealth
1.203/10

Elevated debt levels

PEG RatioValuation
3.992/10

Expensive relative to growth rate

LWAY4 concerns · Avg: 3.3/10
P/E RatioValuation
37.7x4/10

Premium valuation, high expectations priced in

Market CapQuality
$387.64M3/10

Smaller company, higher risk/reward

Profit MarginProfitability
4.5%3/10

4.5% margin — thin

Operating MarginProfitability
0.9%3/10

Operating margin of 0.9%

Comparative Analysis Report

WallStSmart Research

Bull 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 : LWAY

The strongest argument for LWAY centers on Altman Z-Score, Debt/Equity, Revenue Growth. Revenue growth of 24.1% demonstrates continued momentum.

Bear Case : KO

The primary concerns for KO are P/E Ratio, Price/Book, Debt/Equity.

Bear Case : LWAY

The primary concerns for LWAY are P/E Ratio, Market Cap, Profit Margin. Thin 4.5% margins leave little buffer for downturns.

Key Dynamics to Monitor

KO profiles as a mature stock while LWAY is a growth play — different risk/reward profiles.

LWAY carries more volatility with a beta of 0.46 — expect wider price swings.

LWAY is growing revenue faster at 24.1% — 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 43/100), backed by strong 28.6% margins. Both earn "Buy" and "Hold" 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.

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Lifeway Foods Inc

CONSUMER DEFENSIVE · PACKAGED FOODS · USA

Lifeway Foods, Inc. produces and markets probiotic-based products in the United States and internationally. The company is headquartered in Morton Grove, Illinois.

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