KO vs WMT

$KO wins this one

$WMT and $KO both sit in Consumer Defensive, but the numbers tell very different stories right now.

$KO scores 67/100 on the ACCE composite versus $WMT's 39/100. The gap is widest in quality (91 vs 58) and momentum (83 vs 32), and it shows up in the fundamentals. $KO's ROE is 42.0% against $WMT's 22.3%, and its net margin of 28.6% dwarfs Walmart's 3.0%. Earnings grew 16.9% year-over-year at $KO; $WMT's fell 9.1% over the same period.

Valuation is the one area where $WMT doesn't look cheap either. Its trailing P/E of 39.2 is well above $KO's 26.4, and $WMT's dividend yield of 0.9% compares poorly to $KO's 2.4%. Both stocks sit above their 6-model fair values, so neither is a bargain on that measure, but $KO at least compensates holders with a meaningful yield and a 1-year return of 29.0% versus $WMT's 6.2%.

$KO is the cleaner pick: better profitability, stronger earnings trajectory, lower valuation multiple, and higher income. $WMT's scale is real, but the current price demands a lot from a business with thin margins and declining earnings.