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DEO vs KR

DEO
Diageo plc
BEARISH
Price
$79.29
Market Cap
$44.08B
Sector
Consumer Defensive
AI Confidence
85%
KR
The Kroger Co.
NEUTRAL
Price
$66.93
Market Cap
$42.36B
Sector
Consumer Defensive
AI Confidence
85%

Valuation

P/E Ratio
DEO
18.31
KR
43.46
Forward P/E
DEO
12.32
KR
11.9
P/B Ratio
DEO
68.44
KR
7.23
P/S Ratio
DEO
2.23
KR
0.29
EV/EBITDA
DEO
32.41
KR
9.24

Profitability

Gross Margin
DEO
60.0%
KR
24.1%
Operating Margin
DEO
31.29%
KR
3.44%
Profit Margin
DEO
12.19%
KR
0.69%
ROE
DEO
19.72%
KR
14.41%
ROA
DEO
7.21%
KR
5.76%

Growth

Revenue Growth
DEO
-4.0%
KR
1.2%
Earnings Growth
DEO
2.9%
KR
50.9%

Financial Health

Debt/Equity
DEO
1.77
KR
4.16
Current Ratio
DEO
1.6
KR
0.8
Quick Ratio
DEO
0.57
KR
0.3

Dividends

Dividend Yield
DEO
4.19%
KR
2.09%
Payout Ratio
DEO
95.64%
KR
87.01%

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)
KR NEUTRAL

The Kroger Co. presents a dichotomy between strong operational execution and deteriorating financial health. While the company maintains a stellar earnings beat record and strong YoY earnings growth (50.9%), its deterministic health is only 'Stable' with a Piotroski F-Score of 4/9. Valuation is a primary concern, as the current price of $66.93 significantly exceeds both the Graham Number ($17.90) and the growth-based Intrinsic Value ($45.43). High leverage (Debt/Equity 4.16) and poor liquidity (Current Ratio 0.80) offset the bullish analyst sentiment.

Strengths
Exceptional earnings track record with consistent beats over 25 quarters
Strong YoY earnings growth of 50.90%
Low Price-to-Sales ratio (0.29) typical of high-volume grocery efficiency
Risks
Excessive leverage with a Debt/Equity ratio of 4.16
Liquidity risk indicated by a Current Ratio of 0.80 and Quick Ratio of 0.30
Unsustainable dividend payout ratio of 87.01%

Compare Another Pair

DEO vs KR: Head-to-Head Comparison

This page compares Diageo plc (DEO) and The Kroger Co. (KR) 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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