WallStSmart

The Coca-Cola Company (KO)vsSprouts Farmers Market LLC (SFM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

The Coca-Cola Company generates 457% more annual revenue ($50.13B vs $9.00B). KO leads profitability with a 28.6% profit margin vs 5.6%. SFM appears more attractively valued with a PEG of 1.94. 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

SFM

Buy

54

out of 100

Grade: C-

Growth: 5.3Profit: 7.0Value: 5.7Quality: 5.0
Piotroski: 3/9Altman Z: 3.14
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

KOSignificantly Overvalued (-44.7%)

Margin of Safety

-44.7%

Fair Value

$62.95

Current Price

$89.06

$26.11 premium

UndervaluedFair: $62.95Overvalued

Intrinsic value data unavailable for SFM.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

KO5 strengths · Avg: 9.4/10
Market CapQuality
$374.24B10/10

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

SFM3 strengths · Avg: 9.3/10
Return on EquityProfitability
35.4%10/10

Every $100 of equity generates 35 in profit

Altman Z-ScoreHealth
3.1410/10

Safe zone — low bankruptcy risk

P/E RatioValuation
16.4x8/10

Attractively priced relative to earnings

Areas to Watch

KO4 concerns · Avg: 3.3/10
P/E RatioValuation
26.1x4/10

Moderate valuation

Price/BookValuation
10.6x4/10

Trading at 10.6x book value

Debt/EquityHealth
1.203/10

Elevated debt levels

PEG RatioValuation
4.232/10

Expensive relative to growth rate

SFM4 concerns · Avg: 3.8/10
PEG RatioValuation
1.944/10

Expensive relative to growth rate

Revenue GrowthGrowth
4.7%4/10

4.7% revenue growth

EPS GrowthGrowth
1.5%4/10

1.5% earnings growth

Profit MarginProfitability
5.6%3/10

5.6% margin — thin

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 : SFM

The strongest argument for SFM centers on Return on Equity, Altman Z-Score, P/E Ratio.

Bear Case : KO

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

Bear Case : SFM

The primary concerns for SFM are PEG Ratio, Revenue Growth, EPS Growth.

Key Dynamics to Monitor

KO profiles as a mature stock while SFM is a value play — different risk/reward profiles.

SFM carries more volatility with a beta of 0.68 — 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 54/100), backed by strong 28.6% margins. 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.

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Sprouts Farmers Market LLC

CONSUMER DEFENSIVE · GROCERY STORES · USA

Sprouts Farmers Market, Inc. offers fresh, natural and organic food products in the United States. The company is headquartered in Phoenix, Arizona.

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