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KO vs MKC

KO
The Coca-Cola Company
BEARISH
Price
$75.44
Market Cap
$324.71B
Sector
Consumer Defensive
AI Confidence
85%
MKC
McCormick & Company, Incorporated
NEUTRAL
Price
$50.54
Market Cap
$13.59B
Sector
Consumer Defensive
AI Confidence
85%

Valuation

P/E Ratio
KO
24.82
MKC
8.29
Forward P/E
KO
21.85
MKC
15.1
P/B Ratio
KO
10.09
MKC
1.95
P/S Ratio
KO
6.77
MKC
1.91
EV/EBITDA
KO
22.31
MKC
13.93

Profitability

Gross Margin
KO
61.63%
MKC
38.18%
Operating Margin
KO
24.66%
MKC
14.34%
Profit Margin
KO
27.34%
MKC
23.12%
ROE
KO
43.32%
MKC
25.35%
ROA
KO
9.15%
MKC
4.88%

Growth

Revenue Growth
KO
2.4%
MKC
16.7%
Earnings Growth
KO
3.6%
MKC
528.3%

Financial Health

Debt/Equity
KO
1.4
MKC
0.65
Current Ratio
KO
1.46
MKC
0.76
Quick Ratio
KO
0.89
MKC
0.29

Dividends

Dividend Yield
KO
2.73%
MKC
3.8%
Payout Ratio
KO
67.11%
MKC
30.0%

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
MKC NEUTRAL

MKC presents a classic 'value trap' profile, characterized by a weak Piotroski F-Score of 3/9 and a severe technical downtrend (0/100). While the stock is fundamentally undervalued relative to its Graham Number ($59.71) and trades at a very low P/E of 8.29, the poor liquidity ratios (Quick Ratio 0.29) and declining price momentum offset the valuation appeal. Strong profitability metrics, including an ROE of 25.35%, suggest a resilient core business, but the deterministic health scores indicate significant internal operational or financial deterioration.

Strengths
Deep value valuation with a P/E of 8.29, significantly below sector average
Strong profitability with a 23.12% profit margin and 25.35% ROE
Sustainable dividend profile with a low 30% payout ratio
Risks
Weak financial health indicated by a Piotroski F-Score of 3/9
Severe liquidity risk with a Quick Ratio of 0.29 and Current Ratio of 0.76
Strongly bearish technical trend (0/100) and negative 1Y/5Y returns

Compare Another Pair

KO vs MKC: Head-to-Head Comparison

This page compares The Coca-Cola Company (KO) and McCormick & Company, Incorporated (MKC) 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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