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GHC vs KO

GHC
Graham Holdings Company
NEUTRAL
Price
$1161.64
Market Cap
$5.05B
Sector
Consumer Defensive
AI Confidence
85%
KO
The Coca-Cola Company
BEARISH
Price
$75.44
Market Cap
$324.71B
Sector
Consumer Defensive
AI Confidence
85%

Valuation

P/E Ratio
GHC
17.48
KO
24.82
Forward P/E
GHC
17.6
KO
21.85
P/B Ratio
GHC
1.06
KO
10.09
P/S Ratio
GHC
1.03
KO
6.77
EV/EBITDA
GHC
10.78
KO
22.31

Profitability

Gross Margin
GHC
29.93%
KO
61.63%
Operating Margin
GHC
6.55%
KO
24.66%
Profit Margin
GHC
5.95%
KO
27.34%
ROE
GHC
6.48%
KO
43.32%
ROA
GHC
2.92%
KO
9.15%

Growth

Revenue Growth
GHC
0.4%
KO
2.4%
Earnings Growth
GHC
-80.1%
KO
3.6%

Financial Health

Debt/Equity
GHC
0.3
KO
1.4
Current Ratio
GHC
1.75
KO
1.46
Quick Ratio
GHC
1.41
KO
0.89

Dividends

Dividend Yield
GHC
0.65%
KO
2.73%
Payout Ratio
GHC
10.83%
KO
67.11%

AI Verdict

GHC NEUTRAL

GHC presents a contradictory profile: it is fundamentally stable but operationally stagnating. The Piotroski F-Score of 4/9 indicates stable health, and the stock trades below its Graham Number ($1282.03), suggesting defensive value. However, this is severely offset by a catastrophic -80.10% YoY earnings collapse and stagnant revenue growth (0.40%), indicating a significant deterioration in profitability. While the balance sheet is exceptionally clean with low debt, the bearish technical trend and high PEG ratio suggest the stock is currently a value trap.

Strengths
Very low Debt/Equity ratio (0.30) indicating minimal insolvency risk
Trading near book value (P/B 1.06), providing a strong valuation floor
Diversified business portfolio across healthcare, automotive, and education
Risks
Severe earnings contraction (-80.10% YoY) suggesting operational distress
Stagnant revenue growth (0.40% YoY) indicating a lack of scalability
Extremely high PEG ratio (4.04) showing price is disconnected from growth
KO BEARISH

KO exhibits a significant disconnect between its current market price ($75.44) and its deterministic value markers, with a Piotroski F-Score of 3/9 indicating weak financial health trends. The stock trades at a massive premium to both its Graham Number ($22.43) and Intrinsic Value ($37.08), while a PEG ratio of 3.95 suggests severe overvaluation relative to its stagnant growth. Despite strong historical earnings beats and high ROE, the combination of bearish insider selling and a 0/100 technical trend signals a lack of immediate catalyst for upside.

Strengths
Exceptional Return on Equity (ROE) of 43.32%
Strong profit margins (27.34%) and gross margins (61.63%)
Consistent track record of beating earnings estimates over 25 quarters
Risks
Severe overvaluation relative to Graham and Intrinsic value models
Weak operational health trend as indicated by a Piotroski F-Score of 3/9
Stagnant revenue growth (2.40% YoY) failing to justify the P/E multiple

Compare Another Pair

GHC vs KO: Head-to-Head Comparison

This page compares Graham Holdings Company (GHC) 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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