WallStSmart

The Coca-Cola Company (KO)vsConstellation Brands Inc Class A (STZ)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

The Coca-Cola Company generates 444% more annual revenue ($49.28B vs $9.06B). KO leads profitability with a 27.8% profit margin vs 20.1%. STZ appears more attractively valued with a PEG of 2.53. STZ earns a higher WallStSmart Score of 72/100 (B).

KO

Strong Buy

65

out of 100

Grade: B-

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

STZ

Strong Buy

72

out of 100

Grade: B

Growth: 4.7Profit: 8.5Value: 5.0Quality: 5.0
Piotroski: 5/9Altman Z: 2.08
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

KOSignificantly Overvalued (-42.9%)

Margin of Safety

-42.9%

Fair Value

$61.78

Current Price

$89.13

$27.35 premium

UndervaluedFair: $61.78Overvalued

Intrinsic value data unavailable for STZ.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

KO5 strengths · Avg: 9.4/10
Market CapQuality
$353.32B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
40.7%10/10

Every $100 of equity generates 41 in profit

Operating MarginProfitability
35.1%10/10

Strong operational efficiency at 35.1%

Profit MarginProfitability
27.8%9/10

Keeps 28 of every $100 in revenue as profit

Free Cash FlowQuality
$1.75B8/10

Generating 1.8B in free cash flow

STZ6 strengths · Avg: 8.7/10
Operating MarginProfitability
35.9%10/10

Strong operational efficiency at 35.9%

Return on EquityProfitability
22.1%9/10

Every $100 of equity generates 22 in profit

Profit MarginProfitability
20.1%9/10

Keeps 20 of every $100 in revenue as profit

P/E RatioValuation
12.7x8/10

Attractively priced relative to earnings

Price/BookValuation
2.7x8/10

Reasonable price relative to book value

EPS GrowthGrowth
30.7%8/10

Earnings expanding 30.7% YoY

Areas to Watch

KO4 concerns · Avg: 3.3/10
P/E RatioValuation
25.9x4/10

Moderate valuation

Price/BookValuation
11.4x4/10

Trading at 11.4x book value

Debt/EquityHealth
1.303/10

Elevated debt levels

PEG RatioValuation
4.012/10

Expensive relative to growth rate

STZ3 concerns · Avg: 2.3/10
Debt/EquityHealth
1.283/10

Elevated debt levels

PEG RatioValuation
2.532/10

Expensive relative to growth rate

Revenue GrowthGrowth
-3.3%2/10

Revenue declined 3.3%

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 27.8% and operating margin at 35.1%. Revenue growth of 12.1% demonstrates continued momentum.

Bull Case : STZ

The strongest argument for STZ centers on Operating Margin, Return on Equity, Profit Margin. Profitability is solid with margins at 20.1% and operating margin at 35.9%.

Bear Case : KO

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

Bear Case : STZ

The primary concerns for STZ are Debt/Equity, PEG Ratio, Revenue Growth.

Key Dynamics to Monitor

KO profiles as a mature stock while STZ is a declining play — different risk/reward profiles.

STZ carries more volatility with a beta of 0.38 — 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

STZ scores higher overall (72/100 vs 65/100), backed by strong 20.1% margins. Both earn "Strong Buy" and "Strong 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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Constellation Brands Inc Class A

CONSUMER DEFENSIVE · BEVERAGES - BREWERS · USA

Constellation Brands, Inc., headquartered in Victor, New York, is an American producer and marketer of beer, wine, and spirits.

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