MO vs. PEP: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at MO and PEP, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | MO | PEP |
|---|---|---|
| Company Name | Altria Group, Inc. | PepsiCo, Inc. |
| Country | United States | United States |
| GICS Sector | Consumer Staples | Consumer Staples |
| GICS Industry | Tobacco | Beverages |
| Market Capitalization | 98.09 billion USD | 202.12 billion USD |
| Exchange | NYSE | NasdaqGS |
| Listing Date | January 2, 1962 | June 1, 1972 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of MO and PEP 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.
Historical Performance at a Glance
| Symbol | MO | PEP |
|---|---|---|
| 5-Day Price Return | 1.11% | 2.26% |
| 13-Week Price Return | -11.59% | -3.03% |
| 26-Week Price Return | 3.05% | 11.93% |
| 52-Week Price Return | 5.32% | -11.47% |
| Month-to-Date Return | 3.21% | -0.16% |
| Year-to-Date Return | 11.28% | -4.08% |
| 10-Day Avg. Volume | 8.73M | 7.03M |
| 3-Month Avg. Volume | 8.37M | 7.98M |
| 3-Month Volatility | 22.58% | 20.24% |
| Beta | 0.51 | 0.42 |
Profitability
Return on Equity (TTM)
MO
149.65%
Tobacco Industry
- Max
- 49.48%
- Q3
- 49.48%
- Median
- 14.09%
- Q1
- 6.31%
- Min
- 4.54%
MO’s Return on Equity of 149.65% is exceptionally high, placing it well beyond the typical range for the Tobacco industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.
PEP
38.92%
Beverages Industry
- Max
- 47.01%
- Q3
- 22.97%
- Median
- 10.24%
- Q1
- 6.33%
- Min
- -16.74%
In the upper quartile for the Beverages industry, PEP’s Return on Equity of 38.92% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
Net Profit Margin (TTM)
MO
37.89%
Tobacco Industry
- Max
- 22.31%
- Q3
- 16.00%
- Median
- 10.39%
- Q1
- 7.88%
- Min
- 5.24%
MO’s Net Profit Margin of 37.89% is exceptionally high, placing it well beyond the typical range for the Tobacco industry. This demonstrates outstanding operational efficiency and a strong competitive advantage in converting revenue into profit.
PEP
7.82%
Beverages Industry
- Max
- 21.65%
- Q3
- 12.41%
- Median
- 8.66%
- Q1
- 5.10%
- Min
- -5.72%
PEP’s Net Profit Margin of 7.82% is aligned with the median group of its peers in the Beverages industry. This indicates its ability to convert revenue into profit is typical for the sector.
Operating Profit Margin (TTM)
MO
47.55%
Tobacco Industry
- Max
- 17.03%
- Q3
- 14.65%
- Median
- 13.27%
- Q1
- 11.00%
- Min
- 7.56%
MO’s Operating Profit Margin of 47.55% is exceptionally high, placing it well above the typical range for the Tobacco industry. This demonstrates outstanding efficiency in managing its core operations, which can be a result of strong pricing power or superior cost control.
PEP
10.73%
Beverages Industry
- Max
- 31.42%
- Q3
- 20.65%
- Median
- 13.47%
- Q1
- 9.66%
- Min
- 2.33%
PEP’s Operating Profit Margin of 10.73% is around the midpoint for the Beverages industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | MO | PEP |
|---|---|---|
| Return on Equity (TTM) | 149.65% | 38.92% |
| Return on Assets (TTM) | 25.66% | 6.99% |
| Net Profit Margin (TTM) | 37.89% | 7.82% |
| Operating Profit Margin (TTM) | 47.55% | 10.73% |
| Gross Profit Margin (TTM) | 62.00% | 54.50% |
Financial Strength
Current Ratio (MRQ)
MO
0.62
Tobacco Industry
- Max
- 3.37
- Q3
- 1.95
- Median
- 1.12
- Q1
- 0.81
- Min
- 0.62
MO’s Current Ratio of 0.62 falls into the lower quartile for the Tobacco industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
PEP
0.91
Beverages Industry
- Max
- 3.43
- Q3
- 1.91
- Median
- 1.22
- Q1
- 0.83
- Min
- 0.55
PEP’s Current Ratio of 0.91 aligns with the median group of the Beverages industry, indicating that its short-term liquidity is in line with its sector peers.
Debt-to-Equity Ratio (MRQ)
MO
8.67
Tobacco Industry
- Max
- 2.19
- Q3
- 2.19
- Median
- 0.57
- Q1
- 0.10
- Min
- 0.01
With a Debt-to-Equity Ratio of 8.67, MO operates with exceptionally high leverage compared to the Tobacco industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.
PEP
2.62
Beverages Industry
- Max
- 2.14
- Q3
- 1.09
- Median
- 0.73
- Q1
- 0.35
- Min
- 0.00
With a Debt-to-Equity Ratio of 2.62, PEP operates with exceptionally high leverage compared to the Beverages industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.
Interest Coverage Ratio (TTM)
MO
36.48
Tobacco Industry
- Max
- 306.04
- Q3
- 126.21
- Median
- 9.35
- Q1
- 6.32
- Min
- -11.45
MO’s Interest Coverage Ratio of 36.48 is positioned comfortably within the norm for the Tobacco industry, indicating a standard and healthy capacity to cover its interest payments.
PEP
13.98
Beverages Industry
- Max
- 78.96
- Q3
- 42.68
- Median
- 10.96
- Q1
- 3.86
- Min
- 0.81
PEP’s Interest Coverage Ratio of 13.98 is positioned comfortably within the norm for the Beverages industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | MO | PEP |
|---|---|---|
| Current Ratio (MRQ) | 0.62 | 0.91 |
| Quick Ratio (MRQ) | 0.49 | 0.68 |
| Debt-to-Equity Ratio (MRQ) | 8.67 | 2.62 |
| Interest Coverage Ratio (TTM) | 36.48 | 13.98 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
MO
7.08%
Tobacco Industry
- Max
- 7.08%
- Q3
- 5.89%
- Median
- 4.33%
- Q1
- 2.84%
- Min
- 0.00%
With a Dividend Yield of 7.08%, MO offers a more attractive income stream than most of its peers in the Tobacco industry, signaling a strong commitment to shareholder returns.
PEP
3.75%
Beverages Industry
- Max
- 7.61%
- Q3
- 4.81%
- Median
- 3.32%
- Q1
- 2.18%
- Min
- 0.00%
PEP’s Dividend Yield of 3.75% is consistent with its peers in the Beverages industry, providing a dividend return that is standard for its sector.
Dividend Payout Ratio (TTM)
MO
77.93%
Tobacco Industry
- Max
- 77.93%
- Q3
- 71.72%
- Median
- 63.28%
- Q1
- 50.14%
- Min
- 49.96%
MO’s Dividend Payout Ratio of 77.93% is in the upper quartile for the Tobacco industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.
PEP
104.55%
Beverages Industry
- Max
- 193.57%
- Q3
- 102.38%
- Median
- 72.98%
- Q1
- 39.04%
- Min
- 0.00%
PEP’s Dividend Payout Ratio of 104.55% is in the upper quartile for the Beverages industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.
Dividend at a Glance
| Symbol | MO | PEP |
|---|---|---|
| Dividend Yield (TTM) | 7.08% | 3.75% |
| Dividend Payout Ratio (TTM) | 77.93% | 104.55% |
Valuation
Price-to-Earnings Ratio (TTM)
MO
11.00
Tobacco Industry
- Max
- 65.58
- Q3
- 33.11
- Median
- 28.08
- Q1
- 11.17
- Min
- 9.81
In the lower quartile for the Tobacco industry, MO’s P/E Ratio of 11.00 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.
PEP
27.91
Beverages Industry
- Max
- 36.07
- Q3
- 23.27
- Median
- 18.39
- Q1
- 14.57
- Min
- 6.38
A P/E Ratio of 27.91 places PEP 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.
Price-to-Sales Ratio (TTM)
MO
4.17
Tobacco Industry
- Max
- 6.83
- Q3
- 4.55
- Median
- 3.22
- Q1
- 1.40
- Min
- 0.79
MO’s P/S Ratio of 4.17 aligns with the market consensus for the Tobacco industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
PEP
2.18
Beverages Industry
- Max
- 4.25
- Q3
- 2.29
- Median
- 1.56
- Q1
- 0.91
- Min
- 0.38
PEP’s P/S Ratio of 2.18 aligns with the market consensus for the Beverages industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
Price-to-Book Ratio (MRQ)
MO
27.09
Tobacco Industry
- Max
- 4.92
- Q3
- 4.80
- Median
- 4.10
- Q1
- 2.16
- Min
- 1.18
At 27.09, MO’s P/B Ratio is at an extreme premium to the Tobacco 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.
PEP
10.01
Beverages Industry
- Max
- 7.45
- Q3
- 4.03
- Median
- 2.20
- Q1
- 1.39
- Min
- 0.83
At 10.01, PEP’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.
Valuation at a Glance
| Symbol | MO | PEP |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 11.00 | 27.91 |
| Price-to-Sales Ratio (TTM) | 4.17 | 2.18 |
| Price-to-Book Ratio (MRQ) | 27.09 | 10.01 |
| Price-to-Free Cash Flow Ratio (TTM) | 10.62 | 24.10 |