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DEO vs KO

DEO
Diageo plc
BEARISH
Price
$79.29
Market Cap
$44.08B
Sector
Consumer Defensive
AI Confidence
85%
KO
The Coca-Cola Company
NEUTRAL
Price
$75.97
Market Cap
$326.96B
Sector
Consumer Defensive
AI Confidence
90%

Valuation

P/E Ratio
DEO
18.31
KO
24.99
Forward P/E
DEO
12.32
KO
21.97
P/B Ratio
DEO
68.44
KO
10.16
P/S Ratio
DEO
2.23
KO
6.82
EV/EBITDA
DEO
32.41
KO
22.47

Profitability

Gross Margin
DEO
60.0%
KO
61.63%
Operating Margin
DEO
31.29%
KO
24.66%
Profit Margin
DEO
12.19%
KO
27.34%
ROE
DEO
19.72%
KO
43.32%
ROA
DEO
7.21%
KO
9.15%

Growth

Revenue Growth
DEO
-4.0%
KO
2.4%
Earnings Growth
DEO
2.9%
KO
3.6%

Financial Health

Debt/Equity
DEO
1.77
KO
1.4
Current Ratio
DEO
1.6
KO
1.46
Quick Ratio
DEO
0.57
KO
0.89

Dividends

Dividend Yield
DEO
4.19%
KO
2.71%
Payout Ratio
DEO
95.64%
KO
67.11%

AI Verdict

DEO BEARISH

Despite a strong Piotroski F-Score of 7/9 indicating operational stability, DEO is exhibiting severe fundamental decay and technical weakness. The stock is trading at a significant premium to both its Graham Number ($10.62) and Intrinsic Value ($49.15), while facing a catastrophic collapse in earnings growth (-62.3% YoY EPS). A dividend payout ratio of 95.64% is unsustainable given the negative revenue growth and crashing quarterly EPS, suggesting a high risk of a dividend cut. The technical trend is completely bearish (0/100), and long-term price performance is dismal (-49.1% over 5 years).

Strengths
Strong Piotroski F-Score (7/9) suggesting solid short-term financial health
High Gross Margins (60.00%) and Operating Margins (31.29%)
Robust Return on Equity (ROE) of 19.72%
Risks
Unsustainable dividend payout ratio (95.64%)
Severe earnings contraction (-78.6% Q/Q EPS growth)
Negative revenue growth (-4.00% YoY)
KO NEUTRAL

KO shows neutral fundamentals based on deterministic rules. Financial strength is weak (F-Score 3/9). Mixed signals with both opportunities and risks present.

Strengths
Strong profitability (27.3% margin)
Strong ROE of 43.3%
Risks
Premium vs Graham Number ($22.62)
Weak financial trend (Piotroski F-Score: 3/9)

Compare Another Pair

DEO vs KO: Head-to-Head Comparison

This page compares Diageo plc (DEO) and The Coca-Cola Company (KO) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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