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DEO vs. PM: Diageo vs. Philip Morris Stock Comparison

How do Diageo (DEO) and Philip Morris (PM) stack up? This page sets them side by side across company profile, performance and risk, profitability, growth, financial strength, dividends, and valuation, with selected fundamentals also measured against each stock's industry-group peers.

Company Profile

Diageo (DEO) and Philip Morris (PM) both fall under the Food, Beverage & Tobacco industry group, but DEO is classified in Beverages while PM is classified in Tobacco.

Philip Morris (PM) trades as ordinary local shares, while Diageo (DEO) trades as an ADR — compare with FX exposure, depositary-program fees, and dividend-withholding-tax differences in mind.

Company profile comparison for Diageo (DEO) and Philip Morris (PM)
Profile ItemDEOPM
NameDiageo plc Sponsored ADRPhilip Morris International Inc.
Country/RegionUnited KingdomUnited States
GICS SectorConsumer StaplesConsumer Staples
GICS Industry GroupFood, Beverage & TobaccoFood, Beverage & Tobacco
GICS IndustryBeveragesTobacco
GICS Sub-IndustryDistillers & VintnersTobacco
Market Capitalization55.56 billion USD308.42 billion USD
CurrencyUSDUSD
ExchangeNYSENYSE
Listing DateMarch 14, 1991March 17, 2008
Security TypeADRCommon Stock

Price Performance

Cumulative Growth

DEO
PM
GSPC
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Diageo (DEO) vs. Philip Morris (PM), with S&P 500 (GSPC) for reference: Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Diageo (DEO) and Philip Morris (PM). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Diageo (DEO) and Philip Morris (PM). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Price performance metrics for Diageo (DEO) and Philip Morris (PM)
MetricDEOPM
Total Return (1Y)13.51%30.82%
Total Return (3Y, Annualized)-11.57%34.64%
Total Return (5Y, Annualized)-10.73%21.10%

Risk Profile

Drawdown History

DEO
PM
GSPC
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Diageo (DEO) vs. Philip Morris (PM), with S&P 500 (GSPC) for reference: Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for Diageo (DEO) and Philip Morris (PM). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for Diageo (DEO) and Philip Morris (PM)
MetricDEOPM
Volatility (1Y, Annualized)33.21%28.46%
Beta (5Y)0.520.35
Max Drawdown (5Y)-63.41%-22.78%
Avg. Volume (3M)1.07M4.48M

Risk-Adjusted Performance

Risk-Return Positioning

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DEO and PM are plotted by 1-year volatility (risk) and 1-year return. The dashed Capital Allocation Line runs from the risk-free rate through the shared industry median.

Risk-Adjusted Metrics

Risk-adjusted metrics for Diageo (DEO) and Philip Morris (PM)
MetricDEOPM
Sharpe Ratio (1Y)0.280.93
Sortino Ratio (1Y)0.381.39

Profitability

ROE (TTM)

Capital efficiency shows on one side only: Diageo (DEO) earns 14.99% on shareholders’ equity, ranked against its industry; Philip Morris (PM) has no ROE this period.

DEO

Food, Beverage & Tobacco industry group

14.99%

Max
32.02%
Q3
16.61%
DEO
14.99%
Median
10.05%
Q1
4.10%
Min
-10.50%

PM

Food, Beverage & Tobacco industry group

--

Max
32.02%
Q3
16.61%
Median
10.05%
Q1
4.10%
Min
-10.50%
PM
--
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Diageo (DEO) vs. Philip Morris (PM): PM does not report ROE, so it has no value marker; DEO is benchmarked against the Food, Beverage & Tobacco industry group.

Net Margin (TTM)

Philip Morris (PM) at 24.83% retains a top-quartile share of revenue as profit, ahead of Diageo (DEO) at 8.84%, which keeps about the industry-typical share.

DEO

Food, Beverage & Tobacco industry group

8.84%

Max
24.83%
Q3
11.22%
DEO
8.84%
Median
5.94%
Q1
2.05%
Min
-11.49%

PM

Food, Beverage & Tobacco industry group

24.83%

PM
24.83%
Max
24.83%
Q3
11.22%
Median
5.94%
Q1
2.05%
Min
-11.49%
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Diageo (DEO) vs. Philip Morris (PM): A comparison of their net margin against the Food, Beverage & Tobacco industry group benchmark.

Operating Margin (TTM)

Philip Morris (PM) at 41.94% shows unusually strong operating efficiency — above its industry’s operating margin range — and Diageo (DEO) at 27.04% also operates in the top quartile.

DEO

Food, Beverage & Tobacco industry group

27.04%

Max
34.91%
DEO
27.04%
Q3
17.57%
Median
11.06%
Q1
4.15%
Min
-15.06%

PM

Food, Beverage & Tobacco industry group

41.94%

PM
41.94%
Max
34.91%
Q3
17.57%
Median
11.06%
Q1
4.15%
Min
-15.06%
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Diageo (DEO) vs. Philip Morris (PM): A comparison of their operating margin against the Food, Beverage & Tobacco industry group benchmark.

Profitability Metrics

Profitability metrics for Diageo (DEO) and Philip Morris (PM)
MetricDEOPM
ROE (TTM)14.99%--
ROA (TTM)7.48%16.88%
Net Margin (TTM)8.84%24.83%
Operating Margin (TTM)27.04%41.94%
Gross Margin (TTM)59.82%67.70%

Growth

Revenue Growth

Philip Morris (PM) at 7.31% is around its peer norm for revenue growth, while Diageo (DEO) at -2.97% drops into the bottom quartile, signaling weaker demand or pricing momentum.

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Diageo (DEO) vs. Philip Morris (PM): A comparison of their Revenue Growth across different time periods.

EPS Growth

Philip Morris (PM) at 60.26% sits in the top EPS growth quartile, while Diageo (DEO) at -26.30% is closer to the peer norm — faster per-share earnings growth for PM.

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Diageo (DEO) vs. Philip Morris (PM): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for Diageo (DEO) and Philip Morris (PM)
MetricDEOPM
Revenue Growth (YoY)-2.97%7.31%
Revenue Growth (3Y CAGR)-1.50%8.57%
EPS Growth (YoY)-26.30%60.26%
EPS Growth (3Y CAGR)-27.84%7.71%

Financial Strength

Current Ratio (MRQ)

Both Diageo (DEO) at 1.60 and Philip Morris (PM) at 1.02 carry current ratio within their industries’ typical mid-ranges, suggesting balanced short-term liquidity relative to peers.

DEO

Food, Beverage & Tobacco industry group

1.60

Max
4.01
Q3
2.35
DEO
1.60
Median
1.53
Q1
1.02
Min
0.33

PM

Food, Beverage & Tobacco industry group

1.02

Max
4.01
Q3
2.35
Median
1.53
PM
1.02
Q1
1.02
Min
0.33
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Diageo (DEO) vs. Philip Morris (PM): A comparison of their current ratio against the Food, Beverage & Tobacco industry group benchmark.

Debt / Equity (MRQ)

Only one side’s leverage can be read here: Diageo (DEO) carries debt-to-equity ratio of 1.71 against its industry range, while Philip Morris (PM) reports no figure this period.

DEO

Food, Beverage & Tobacco industry group

1.71

Max
2.19
DEO
1.71
Q3
1.11
Median
0.68
Q1
0.33
Min
0.00

PM

Food, Beverage & Tobacco industry group

--

Max
2.19
Q3
1.11
Median
0.68
Q1
0.33
Min
0.00
PM
--
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Diageo (DEO) vs. Philip Morris (PM): PM does not report debt-to-equity ratio, so it has no value marker; DEO is benchmarked against the Food, Beverage & Tobacco industry group.

Financial Strength Metrics

Financial strength metrics for Diageo (DEO) and Philip Morris (PM)
MetricDEOPM
Current Ratio (MRQ)1.601.02
Debt / Equity (MRQ)1.71--
Net Debt / EBITDA3.182.04

Dividends

Dividend Yield (TTM)

Both Diageo (DEO) at 0.50% and Philip Morris (PM) at 2.98% pay solid, industry-typical yields, sitting squarely within their peers’ usual range.

DEO

Food, Beverage & Tobacco industry group

0.50%

Max
9.38%
Q3
3.77%
Median
1.76%
DEO
0.50%
Q1
0.00%
Min
0.00%

PM

Food, Beverage & Tobacco industry group

2.98%

Max
9.38%
Q3
3.77%
PM
2.98%
Median
1.76%
Q1
0.00%
Min
0.00%
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Diageo (DEO) vs. Philip Morris (PM): A comparison of their dividend yield against the Food, Beverage & Tobacco industry group benchmark.

Dividend Payout Ratio (TTM)

Diageo (DEO) reports payout ratio above 100% at 106.52%, meaning dividends exceeded current-period earnings and sustainability needs extra context. Meanwhile Philip Morris (PM) reports 87.74%, ranking against industry peers normally.

DEO

Food, Beverage & Tobacco industry group

106.52%

Max
199.19%
DEO
106.52%
Q3
81.03%
Median
41.52%
Q1
0.00%
Min
0.00%

PM

Food, Beverage & Tobacco industry group

87.74%

Max
199.19%
PM
87.74%
Q3
81.03%
Median
41.52%
Q1
0.00%
Min
0.00%
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Diageo (DEO) vs. Philip Morris (PM): A comparison of their payout ratio against the Food, Beverage & Tobacco industry group benchmark.

Dividend Metrics

Dividend metrics for Diageo (DEO) and Philip Morris (PM)
MetricDEOPM
Dividend Yield (TTM)0.50%2.98%
Dividend Payout Ratio (TTM)106.52%87.74%

Valuation

P/E Ratio (TTM)

Philip Morris (PM) at 28.89 is near its industry’s usual P/E ratio, while Diageo (DEO) at 31.97 sits in the richer quartile — DEO needs stronger growth or earnings quality to justify the premium.

DEO

Food, Beverage & Tobacco industry group

31.97

Max
52.52
DEO
31.97
Q3
30.78
Median
18.76
Q1
12.77
Min
4.72

PM

Food, Beverage & Tobacco industry group

28.89

Max
52.52
Q3
30.78
PM
28.89
Median
18.76
Q1
12.77
Min
4.72
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Diageo (DEO) vs. Philip Morris (PM): A comparison of their P/E ratio against the Food, Beverage & Tobacco industry group benchmark.

P/S Ratio (TTM)

Both look expensive on sales: Diageo (DEO) at 2.83 sits in the upper P/S ratio quartile, and Philip Morris (PM) at 7.15 prices even higher, above its industry range.

DEO

Food, Beverage & Tobacco industry group

2.83

Max
4.64
DEO
2.83
Q3
2.27
Median
1.17
Q1
0.52
Min
0.00

PM

Food, Beverage & Tobacco industry group

7.15

PM
7.15
Max
4.64
Q3
2.27
Median
1.17
Q1
0.52
Min
0.00
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Diageo (DEO) vs. Philip Morris (PM): A comparison of their P/S ratio against the Food, Beverage & Tobacco industry group benchmark.

P/B Ratio (MRQ)

Philip Morris (PM) reports a negative P/B ratio of -38.86, meaning negative book equity — the multiple itself is not meaningful for valuation. Meanwhile Diageo (DEO) reports 91.95, ranking against industry peers normally.

DEO

Food, Beverage & Tobacco industry group

91.95

DEO
91.95
Max
6.35
Q3
3.07
Median
1.58
Q1
0.82
Min
0.00

PM

Food, Beverage & Tobacco industry group

-38.86

Max
6.35
Q3
3.07
Median
1.58
Q1
0.82
Min
0.00
PM
-38.86
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Diageo (DEO) vs. Philip Morris (PM): A comparison of their P/B ratio against the Food, Beverage & Tobacco industry group benchmark.

Valuation Metrics

Valuation metrics for Diageo (DEO) and Philip Morris (PM)
MetricDEOPM
P/E Ratio (TTM)31.9728.89
P/S Ratio (TTM)2.837.15
P/B Ratio (MRQ)91.95-38.86
Free Cash Flow Yield (TTM)4.62%3.74%