Seek Returns logo

KHC vs. KO: A Head-to-Head Stock Comparison

Updated on

Here’s a clear look at KHC and KO, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

SymbolKHCKO
Company NameThe Kraft Heinz CompanyThe Coca-Cola Company
CountryUnited StatesUnited States
GICS SectorConsumer StaplesConsumer Staples
GICS IndustryFood ProductsBeverages
Market Capitalization31.10 billion USD287.40 billion USD
ExchangeNasdaqGSNYSE
Listing DateJuly 6, 2015January 2, 1962
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of KHC and KO by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period. Data is adjusted for dividends and splits.

KHC vs. KO: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolKHCKO
5-Day Price Return-2.62%1.21%
13-Week Price Return0.85%-6.82%
26-Week Price Return-12.29%-5.60%
52-Week Price Return-26.38%-7.07%
Month-to-Date Return-6.90%0.69%
Year-to-Date Return-15.21%7.26%
10-Day Avg. Volume18.11M16.78M
3-Month Avg. Volume15.43M15.89M
3-Month Volatility29.09%13.32%
Beta0.140.40

Profitability

Return on Equity (TTM)

KHC

-11.20%

Food Products Industry

Max
30.51%
Q3
16.54%
Median
10.46%
Q1
6.76%
Min
-2.18%

KHC has a negative Return on Equity of -11.20%. This indicates the company is generating a loss for its shareholders, which can be a result of unprofitability or negative shareholder equity and is often a sign of financial distress.

KO

45.90%

Beverages Industry

Max
45.90%
Q3
22.74%
Median
10.10%
Q1
6.35%
Min
-13.21%

In the upper quartile for the Beverages industry, KO’s Return on Equity of 45.90% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

KHC vs. KO: A comparison of their Return on Equity (TTM) against their respective Food Products and Beverages industry benchmarks.

Net Profit Margin (TTM)

KHC

-20.83%

Food Products Industry

Max
18.44%
Q3
10.21%
Median
6.29%
Q1
3.53%
Min
-0.80%

KHC has a negative Net Profit Margin of -20.83%, indicating the company is operating at a net loss as its expenses exceeded its revenues.

KO

25.89%

Beverages Industry

Max
21.38%
Q3
12.24%
Median
8.43%
Q1
5.97%
Min
0.65%

KO’s Net Profit Margin of 25.89% is exceptionally high, placing it well beyond the typical range for the Beverages industry. This demonstrates outstanding operational efficiency and a strong competitive advantage in converting revenue into profit.

KHC vs. KO: A comparison of their Net Profit Margin (TTM) against their respective Food Products and Beverages industry benchmarks.

Operating Profit Margin (TTM)

KHC

-27.34%

Food Products Industry

Max
24.83%
Q3
14.29%
Median
9.64%
Q1
6.11%
Min
0.08%

KHC has a negative Operating Profit Margin of -27.34%. This signifies the company is unprofitable at the operational level, as its core business expenses exceed its revenue.

KO

29.32%

Beverages Industry

Max
29.32%
Q3
20.15%
Median
13.14%
Q1
10.74%
Min
1.24%

An Operating Profit Margin of 29.32% places KO in the upper quartile for the Beverages industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

KHC vs. KO: A comparison of their Operating Profit Margin (TTM) against their respective Food Products and Beverages industry benchmarks.

Profitability at a Glance

SymbolKHCKO
Return on Equity (TTM)-11.20%45.90%
Return on Assets (TTM)-6.05%11.80%
Net Profit Margin (TTM)-20.83%25.89%
Operating Profit Margin (TTM)-27.34%29.32%
Gross Profit Margin (TTM)34.31%61.43%

Financial Strength

Current Ratio (MRQ)

KHC

1.07

Food Products Industry

Max
3.99
Q3
2.39
Median
1.62
Q1
1.23
Min
0.57

KHC’s Current Ratio of 1.07 falls into the lower quartile for the Food Products industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

KO

1.21

Beverages Industry

Max
3.52
Q3
2.00
Median
1.22
Q1
0.87
Min
0.55

KO’s Current Ratio of 1.21 aligns with the median group of the Beverages industry, indicating that its short-term liquidity is in line with its sector peers.

KHC vs. KO: A comparison of their Current Ratio (MRQ) against their respective Food Products and Beverages industry benchmarks.

Debt-to-Equity Ratio (MRQ)

KHC

0.51

Food Products Industry

Max
1.92
Q3
0.92
Median
0.51
Q1
0.25
Min
0.00

KHC’s Debt-to-Equity Ratio of 0.51 is typical for the Food Products industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

KO

1.73

Beverages Industry

Max
2.14
Q3
1.14
Median
0.74
Q1
0.37
Min
0.00

KO’s leverage is in the upper quartile of the Beverages industry, with a Debt-to-Equity Ratio of 1.73. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.

KHC vs. KO: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Food Products and Beverages industry benchmarks.

Interest Coverage Ratio (TTM)

KHC

1.99

Food Products Industry

Max
65.06
Q3
29.45
Median
9.43
Q1
4.70
Min
-1.69

In the lower quartile for the Food Products industry, KHC’s Interest Coverage Ratio of 1.99 indicates a tighter cushion for servicing debt, suggesting less financial flexibility than many of its competitors.

KO

67.13

Beverages Industry

Max
78.96
Q3
42.68
Median
10.96
Q1
3.86
Min
0.81

KO’s Interest Coverage Ratio of 67.13 is in the upper quartile for the Beverages industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.

KHC vs. KO: A comparison of their Interest Coverage Ratio (TTM) against their respective Food Products and Beverages industry benchmarks.

Financial Strength at a Glance

SymbolKHCKO
Current Ratio (MRQ)1.071.21
Quick Ratio (MRQ)0.630.84
Debt-to-Equity Ratio (MRQ)0.511.73
Interest Coverage Ratio (TTM)1.9967.13

Growth

Revenue Growth

KHC vs. KO: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

KHC vs. KO: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

KHC

6.15%

Food Products Industry

Max
8.09%
Q3
4.48%
Median
2.69%
Q1
1.66%
Min
0.00%

With a Dividend Yield of 6.15%, KHC offers a more attractive income stream than most of its peers in the Food Products industry, signaling a strong commitment to shareholder returns.

KO

2.95%

Beverages Industry

Max
7.92%
Q3
4.37%
Median
3.32%
Q1
1.98%
Min
0.00%

KO’s Dividend Yield of 2.95% is consistent with its peers in the Beverages industry, providing a dividend return that is standard for its sector.

KHC vs. KO: A comparison of their Dividend Yield (TTM) against their respective Food Products and Beverages industry benchmarks.

Dividend Payout Ratio (TTM)

KHC

48.86%

Food Products Industry

Max
216.00%
Q3
112.15%
Median
72.83%
Q1
41.56%
Min
0.00%

KHC’s Dividend Payout Ratio of 48.86% is within the typical range for the Food Products industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

KO

69.42%

Beverages Industry

Max
188.65%
Q3
104.55%
Median
72.60%
Q1
40.31%
Min
0.00%

KO’s Dividend Payout Ratio of 69.42% is within the typical range for the Beverages industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

KHC vs. KO: A comparison of their Dividend Payout Ratio (TTM) against their respective Food Products and Beverages industry benchmarks.

Dividend at a Glance

SymbolKHCKO
Dividend Yield (TTM)6.15%2.95%
Dividend Payout Ratio (TTM)48.86%69.42%

Valuation

Price-to-Earnings Ratio (TTM)

KHC

--

Food Products Industry

Max
41.70
Q3
24.61
Median
17.81
Q1
12.59
Min
3.07

P/E Ratio data for KHC is currently unavailable.

KO

23.51

Beverages Industry

Max
35.25
Q3
22.66
Median
17.17
Q1
13.65
Min
4.77

A P/E Ratio of 23.51 places KO in the upper quartile for the Beverages industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.

KHC vs. KO: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Food Products and Beverages industry benchmarks.

Price-to-Sales Ratio (TTM)

KHC

1.23

Food Products Industry

Max
3.33
Q3
1.74
Median
1.10
Q1
0.66
Min
0.11

KHC’s P/S Ratio of 1.23 aligns with the market consensus for the Food Products industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

KO

6.09

Beverages Industry

Max
4.06
Q3
2.24
Median
1.34
Q1
0.86
Min
0.39

With a P/S Ratio of 6.09, KO trades at a valuation that eclipses even the highest in the Beverages industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

KHC vs. KO: A comparison of their Price-to-Sales Ratio (TTM) against their respective Food Products and Beverages industry benchmarks.

Price-to-Book Ratio (MRQ)

KHC

0.74

Food Products Industry

Max
5.01
Q3
2.98
Median
1.93
Q1
1.28
Min
0.47

KHC’s P/B Ratio of 0.74 is in the lower quartile for the Food Products industry. From a value investing perspective, this is favorable, as it suggests the stock is trading at a discount to its net asset value and may offer a greater margin of safety.

KO

10.59

Beverages Industry

Max
6.90
Q3
4.23
Median
2.20
Q1
1.51
Min
0.69

At 10.59, KO’s P/B Ratio is at an extreme premium to the Beverages industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.

KHC vs. KO: A comparison of their Price-to-Book Ratio (MRQ) against their respective Food Products and Beverages industry benchmarks.

Valuation at a Glance

SymbolKHCKO
Price-to-Earnings Ratio (TTM)--23.51
Price-to-Sales Ratio (TTM)1.236.09
Price-to-Book Ratio (MRQ)0.7410.59
Price-to-Free Cash Flow Ratio (TTM)8.9143.95
KHC vs. KO: A Head-to-Head Stock Comparison