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HLF vs KO

HLF
Herbalife Ltd.
NEUTRAL
Price
$16.46
Market Cap
$1.7B
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
HLF
7.48
KO
24.82
Forward P/E
HLF
5.27
KO
21.85
P/B Ratio
HLF
-3.3
KO
10.09
P/S Ratio
HLF
0.34
KO
6.77
EV/EBITDA
HLF
5.72
KO
22.31

Profitability

Gross Margin
HLF
77.87%
KO
61.63%
Operating Margin
HLF
8.33%
KO
24.66%
Profit Margin
HLF
4.53%
KO
27.34%
ROE
HLF
--
KO
43.32%
ROA
HLF
11.27%
KO
9.15%

Growth

Revenue Growth
HLF
6.3%
KO
2.4%
Earnings Growth
HLF
-53.3%
KO
3.6%

Financial Health

Debt/Equity
HLF
--
KO
1.4
Current Ratio
HLF
1.13
KO
1.46
Quick Ratio
HLF
0.45
KO
0.89

Dividends

Dividend Yield
HLF
--
KO
2.73%
Payout Ratio
HLF
0.0%
KO
67.11%

AI Verdict

HLF NEUTRAL

HLF presents a complex profile characterized by a strong Piotroski F-Score of 7/9, indicating operational improvement, contrasted against a critical structural red flag: a negative Price/Book ratio (-3.30) suggesting negative shareholders' equity. While valuation metrics are highly attractive with a P/E of 7.48 and a PEG of 0.61, these are overshadowed by a severe -53.3% collapse in year-over-year earnings growth. The stock is currently trading at $16.46, slightly above its growth-based intrinsic value of $15.40. Consequently, the company appears to be a deep-value play with significant balance sheet risks and inconsistent earnings quality.

Strengths
Strong operational health indicated by a Piotroski F-Score of 7/9
Very high gross margins (77.87%) providing significant pricing power
Deeply undervalued on a relative basis (P/E 7.48, PEG 0.61)
Risks
Negative shareholders' equity as evidenced by the -3.30 Price/Book ratio
Severe earnings contraction (-53.3% YoY growth)
Poor short-term liquidity with a Quick Ratio of 0.45
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

HLF vs KO: Head-to-Head Comparison

This page compares Herbalife Ltd. (HLF) 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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