PEP vs. PM: PepsiCo vs. Philip Morris Stock Comparison

June 25, 2026

How do PepsiCo (PEP) 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

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

Company profile comparison for PepsiCo (PEP) and Philip Morris (PM)
Profile Item	PEP	PM
Name	PepsiCo, Inc.	Philip Morris International Inc.
Country/Region	United States	United States
GICS Sector	Consumer Staples	Consumer Staples
GICS Industry Group	Food, Beverage & Tobacco	Food, Beverage & Tobacco
GICS Industry	Beverages	Tobacco
GICS Sub-Industry	Soft Drinks & Non-alcoholic Beverages	Tobacco
Market Capitalization	194.47 billion USD	278.64 billion USD
Currency	USD	USD
Exchange	Nasdaq	NYSE
Listing Date	June 1, 1972	March 17, 2008
Security Type	Common Stock	Common Stock

Performance

Cumulative Growth

PEP

PepsiCo (PEP) vs. Philip Morris (PM): 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 PepsiCo (PEP) and Philip Morris (PM). Returns over one year are annualized.

Performance at a Glance

Performance metrics for PepsiCo (PEP) and Philip Morris (PM)
Metric	PEP	PM
Total Return (1Y)	12.86%	0.34%

Risk

Drawdown

PEP

PepsiCo (PEP) vs. Philip Morris (PM): Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Risk at a Glance

Risk metrics for PepsiCo (PEP) and Philip Morris (PM)
Metric	PEP	PM
Volatility (1Y, Annualized)	21.85%	28.27%
Beta (5Y)	0.35	0.38
Avg. Volume (3M)	7.29M	4.83M

Profitability

ROE (TTM)

Capital efficiency shows on one side only: PepsiCo (PEP) earns 43.88% on shareholders’ equity, ranked against its industry; Philip Morris (PM) has no ROE this period.

PEP

Food, Beverage & Tobacco industry group

43.88%

PEP: 43.88%
Max: 37.95%
Q3: 18.99%
Median: 14.93%
Q1: 3.88%
Min: -18.08%

PM

Food, Beverage & Tobacco industry group

Max: 37.95%
Q3: 18.99%
Median: 14.93%
Q1: 3.88%
Min: -18.08%
PM: --

PepsiCo (PEP) vs. Philip Morris (PM): PM does not report ROE, so it has no value marker; PEP is benchmarked against the Food, Beverage & Tobacco industry group.

Net Margin (TTM)

Philip Morris (PM) at 26.74% retains a top-quartile share of revenue as profit, ahead of PepsiCo (PEP) at 9.15%, which keeps about the industry-typical share.

PEP

Food, Beverage & Tobacco industry group

9.15%

Max: 27.80%
Q3: 12.29%
PEP: 9.15%
Median: 6.11%
Q1: 1.28%
Min: -7.46%

PM

Food, Beverage & Tobacco industry group

26.74%

Max: 27.80%
PM: 26.74%
Q3: 12.29%
Median: 6.11%
Q1: 1.28%
Min: -7.46%

PepsiCo (PEP) 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 36.04% operates in the top operating margin quartile, ahead of PepsiCo (PEP) at 16.96%, which runs around its industry’s norm.

PEP

Food, Beverage & Tobacco industry group

16.96%

Max: 36.04%
Q3: 17.34%
PEP: 16.96%
Median: 10.44%
Q1: 3.65%
Min: -7.33%

PM

Food, Beverage & Tobacco industry group

36.04%

PM: 36.04%
Max: 36.04%
Q3: 17.34%
Median: 10.44%
Q1: 3.65%
Min: -7.33%

PepsiCo (PEP) vs. Philip Morris (PM): A comparison of their operating margin against the Food, Beverage & Tobacco industry group benchmark.

Profitability at a Glance

Profitability metrics for PepsiCo (PEP) and Philip Morris (PM)
Metric	PEP	PM
ROE (TTM)	43.88%	--
ROA (TTM)	9.09%	15.46%
Net Margin (TTM)	9.15%	26.74%
Operating Margin (TTM)	16.96%	36.04%
Gross Margin (TTM)	54.38%	67.28%

Growth

Revenue Growth

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

Revenue Growth at a Glance

Revenue growth metrics for PepsiCo (PEP) and Philip Morris (PM)
Metric	PEP	PM
Revenue Growth (YoY)	2.25%	7.31%
Revenue Growth (3Y CAGR)	2.83%	8.57%

EPS Growth

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

EPS Growth at a Glance

EPS growth metrics for PepsiCo (PEP) and Philip Morris (PM)
Metric	PEP	PM
EPS Growth (YoY)	-13.67%	60.26%
EPS Growth (3Y CAGR)	-2.23%	7.71%

Financial Strength

Current Ratio (MRQ)

Both PepsiCo (PEP) at 0.90 and Philip Morris (PM) at 0.98 run current ratio in the tighter-liquidity quartile of industry peers, leaving thinner cushions against current liabilities than typical competitors.

PEP

Food, Beverage & Tobacco industry group

0.90

Max: 5.06
Q3: 2.66
Median: 1.60
Q1: 1.05
PEP: 0.90
Min: 0.54

PM

Food, Beverage & Tobacco industry group

0.98

Max: 5.06
Q3: 2.66
Median: 1.60
Q1: 1.05
PM: 0.98
Min: 0.54

PepsiCo (PEP) 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: PepsiCo (PEP) carries debt-to-equity ratio of 2.45 against its industry range, while Philip Morris (PM) reports no figure this period.

PEP

Food, Beverage & Tobacco industry group

2.45

PEP: 2.45
Max: 2.20
Q3: 1.12
Median: 0.70
Q1: 0.35
Min: 0.00

PM

Food, Beverage & Tobacco industry group

Max: 2.20
Q3: 1.12
Median: 0.70
Q1: 0.35
Min: 0.00
PM: --

PepsiCo (PEP) vs. Philip Morris (PM): PM does not report debt-to-equity ratio, so it has no value marker; PEP is benchmarked against the Food, Beverage & Tobacco industry group.

Financial Strength at a Glance

Financial strength metrics for PepsiCo (PEP) and Philip Morris (PM)
Metric	PEP	PM
Current Ratio (MRQ)	0.90	0.98
Debt / Equity (MRQ)	2.45	--
Net Debt / EBITDA	2.24	2.50

Dividends

Dividend Yield (TTM)

Both PepsiCo (PEP) at 4.01% and Philip Morris (PM) at 3.22% pay solid, industry-typical yields, sitting squarely within their peers’ usual range.

PEP

Food, Beverage & Tobacco industry group

4.01%

Max: 10.42%
Q3: 4.33%
PEP: 4.01%
Median: 2.77%
Q1: 0.00%
Min: 0.00%

PM

Food, Beverage & Tobacco industry group

3.22%

Max: 10.42%
Q3: 4.33%
PM: 3.22%
Median: 2.77%
Q1: 0.00%
Min: 0.00%

PepsiCo (PEP) vs. Philip Morris (PM): A comparison of their dividend yield against the Food, Beverage & Tobacco industry group benchmark.

Dividend Payout Ratio (TTM)

Philip Morris (PM) at 81.09% pays out a band-typical share of earnings, while PepsiCo (PEP) at 89.32% distributes more than its industry norm — less retained, thinner cover.

PEP

Food, Beverage & Tobacco industry group

89.32%

Max: 159.06%
PEP: 89.32%
Q3: 86.47%
Median: 45.18%
Q1: 0.00%
Min: 0.00%

PM

Food, Beverage & Tobacco industry group

81.09%

Max: 159.06%
Q3: 86.47%
PM: 81.09%
Median: 45.18%
Q1: 0.00%
Min: 0.00%

PepsiCo (PEP) vs. Philip Morris (PM): A comparison of their payout ratio against the Food, Beverage & Tobacco industry group benchmark.

Dividends at a Glance

Dividend metrics for PepsiCo (PEP) and Philip Morris (PM)
Metric	PEP	PM
Dividend Yield (TTM)	4.01%	3.22%
Dividend Payout Ratio (TTM)	89.32%	81.09%

Valuation

P/E Ratio (TTM)

Both PepsiCo (PEP) at 22.33 and Philip Morris (PM) at 25.18 land around their industries’ usual P/E ratio levels — neither is getting a clear earnings-multiple discount or premium versus peers.

PEP

Food, Beverage & Tobacco industry group

22.33

Max: 45.75
Q3: 29.28
PEP: 22.33
Median: 18.75
Q1: 11.54
Min: 5.50

PM

Food, Beverage & Tobacco industry group

25.18

Max: 45.75
Q3: 29.28
PM: 25.18
Median: 18.75
Q1: 11.54
Min: 5.50

PepsiCo (PEP) vs. Philip Morris (PM): A comparison of their P/E ratio against the Food, Beverage & Tobacco industry group benchmark.

P/S Ratio (TTM)

PepsiCo (PEP) at 2.04 prices around its industry’s typical P/S ratio, while Philip Morris (PM) at 6.72 clears its benchmark range — PM looks notably rich on sales.

PEP

Food, Beverage & Tobacco industry group

2.04

Max: 4.14
Q3: 2.33
PEP: 2.04
Median: 0.98
Q1: 0.50
Min: 0.00

PM

Food, Beverage & Tobacco industry group

6.72

PM: 6.72
Max: 4.14
Q3: 2.33
Median: 0.98
Q1: 0.50
Min: 0.00

PepsiCo (PEP) 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 -30.03, meaning negative book equity — the multiple itself is not meaningful for valuation. Meanwhile PepsiCo (PEP) reports 9.10, ranking against industry peers normally.

PEP

Food, Beverage & Tobacco industry group

9.10

PEP: 9.10
Max: 5.85
Q3: 3.24
Median: 1.67
Q1: 0.90
Min: 0.00

PM

Food, Beverage & Tobacco industry group

-30.03

Max: 5.85
Q3: 3.24
Median: 1.67
Q1: 0.90
Min: 0.00
PM: -30.03

PepsiCo (PEP) vs. Philip Morris (PM): A comparison of their P/B ratio against the Food, Beverage & Tobacco industry group benchmark.

Valuation at a Glance

Valuation metrics for PepsiCo (PEP) and Philip Morris (PM)
Metric	PEP	PM
P/E Ratio (TTM)	22.33	25.18
P/S Ratio (TTM)	2.04	6.72
P/B Ratio (MRQ)	9.10	-30.03
Free Cash Flow Yield (TTM)	4.50%	3.08%