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KO vs LW

KO
The Coca-Cola Company
BEARISH
Price
$75.44
Market Cap
$324.71B
Sector
Consumer Defensive
AI Confidence
85%
LW
Lamb Weston Holdings, Inc.
BEARISH
Price
$43.03
Market Cap
$5.94B
Sector
Consumer Defensive
AI Confidence
85%

Valuation

P/E Ratio
KO
24.82
LW
20.2
Forward P/E
KO
21.85
LW
14.36
P/B Ratio
KO
10.09
LW
3.27
P/S Ratio
KO
6.77
LW
0.91
EV/EBITDA
KO
22.31
LW
8.5

Profitability

Gross Margin
KO
61.63%
LW
20.66%
Operating Margin
KO
24.66%
LW
10.93%
Profit Margin
KO
27.34%
LW
4.61%
ROE
KO
43.32%
LW
17.36%
ROA
KO
9.15%
LW
6.34%

Growth

Revenue Growth
KO
2.4%
LW
2.9%
Earnings Growth
KO
3.6%
LW
-62.2%

Financial Health

Debt/Equity
KO
1.4
LW
2.2
Current Ratio
KO
1.46
LW
1.46
Quick Ratio
KO
0.89
LW
0.57

Dividends

Dividend Yield
KO
2.73%
LW
3.53%
Payout Ratio
KO
67.11%
LW
69.95%

AI Verdict

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
LW BEARISH

Lamb Weston exhibits significant fundamental deterioration, highlighted by a Piotroski F-Score of 4/9 (Stable/Weak) and a severe earnings collapse of -62.20% YoY. The stock is trading at a substantial premium to its Graham Number ($25.10) and Intrinsic Value ($14.91), suggesting a lack of valuation support. While analysts maintain a 'Buy' rating, the technical trend is 0/100 (Bearish) and the company's high Debt/Equity ratio (2.20) combined with a low Quick Ratio (0.57) indicates mounting financial pressure.

Strengths
Strong ROE of 17.36% indicating efficient equity utilization
Consistent history of beating earnings estimates in recent quarters
Operates in the Consumer Defensive sector providing some recessionary hedge
Risks
Severe earnings contraction (-62.20% YoY) indicating operational distress
High leverage with a Debt/Equity ratio of 2.20
Poor liquidity indicated by a Quick Ratio of 0.57

Compare Another Pair

KO vs LW: Head-to-Head Comparison

This page compares The Coca-Cola Company (KO) and Lamb Weston Holdings, Inc. (LW) 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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