PEP vs. PM: PepsiCo vs. Philip Morris Stock Comparison
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.
| 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 | 189.90 billion USD | 295.47 billion USD |
| Currency | USD | USD |
| Exchange | Nasdaq | NYSE |
| Listing Date | June 1, 1972 | March 17, 2008 |
| Security Type | Common Stock | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | PEP | PM |
|---|---|---|
| Total Return (1Y) | 0.42% | 16.81% |
| Total Return (3Y, Annualized) | -6.18% | 30.40% |
| Total Return (5Y, Annualized) | 1.08% | 19.27% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
| Metric | PEP | PM |
|---|---|---|
| Volatility (1Y, Annualized) | 21.23% | 27.96% |
| Beta (5Y) | 0.35 | 0.37 |
| Max Drawdown (5Y) | -30.32% | -22.78% |
| Avg. Volume (3M) | 8.71M | 5.13M |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | PEP | PM |
|---|---|---|
| Sharpe Ratio (1Y) | -0.17 | 0.46 |
| Sortino Ratio (1Y) | -0.26 | 0.67 |
Profitability
ROE (TTM)
Capital efficiency shows on one side only: PepsiCo (PEP) earns 51.51% on shareholders’ equity, ranked against its industry; Philip Morris (PM) has no ROE this period.
PEP
Food, Beverage & Tobacco industry group
51.51%
- PEP
- 51.51%
- Max
- 34.02%
- Q3
- 17.73%
- Median
- 12.22%
- Q1
- 2.77%
- Min
- -19.47%
PM
Food, Beverage & Tobacco industry group
--
- Max
- 34.02%
- Q3
- 17.73%
- Median
- 12.22%
- Q1
- 2.77%
- Min
- -19.47%
- PM
- --
Net Margin (TTM)
Philip Morris (PM) at 25.56% retains a top-quartile share of revenue as profit, ahead of PepsiCo (PEP) at 10.79%, which keeps about the industry-typical share.
PEP
Food, Beverage & Tobacco industry group
10.79%
- Max
- 25.56%
- Q3
- 11.22%
- PEP
- 10.79%
- Median
- 5.94%
- Q1
- 0.88%
- Min
- -14.28%
PM
Food, Beverage & Tobacco industry group
25.56%
- PM
- 25.56%
- Max
- 25.56%
- Q3
- 11.22%
- Median
- 5.94%
- Q1
- 0.88%
- Min
- -14.28%
Operating Margin (TTM)
Philip Morris (PM) at 40.00% turns sales into operating profit above its industry’s benchmark range, while PepsiCo (PEP) at 16.84% operates around its industry’s norm.
PEP
Food, Beverage & Tobacco industry group
16.84%
- Max
- 35.93%
- Q3
- 16.85%
- PEP
- 16.84%
- Median
- 10.92%
- Q1
- 3.80%
- Min
- -11.04%
PM
Food, Beverage & Tobacco industry group
40.00%
- PM
- 40.00%
- Max
- 35.93%
- Q3
- 16.85%
- Median
- 10.92%
- Q1
- 3.80%
- Min
- -11.04%
Profitability Metrics
| Metric | PEP | PM |
|---|---|---|
| ROE (TTM) | 51.51% | -- |
| ROA (TTM) | 8.93% | 14.59% |
| Net Margin (TTM) | 10.79% | 25.56% |
| Operating Margin (TTM) | 16.84% | 40.00% |
| Gross Margin (TTM) | 54.17% | 67.48% |
Growth
Revenue Growth
Both PepsiCo (PEP) at 2.25% and Philip Morris (PM) at 7.31% land near their industries' usual revenue growth ranges, so top-line momentum looks broadly in line with peers on both sides.
EPS Growth
Philip Morris (PM) at 60.26% sits in the top EPS growth quartile, while PepsiCo (PEP) at -13.67% is closer to the peer norm — faster per-share earnings growth for PM.
Growth Metrics
| Metric | PEP | PM |
|---|---|---|
| Revenue Growth (YoY) | 2.25% | 7.31% |
| Revenue Growth (3Y CAGR) | 2.83% | 8.57% |
| EPS Growth (YoY) | -13.67% | 60.26% |
| EPS Growth (3Y CAGR) | -2.23% | 7.71% |
Financial Strength
Current Ratio (MRQ)
Philip Morris (PM) at 0.98 keeps current ratio within its industry’s typical mid-range, while PepsiCo (PEP) at 0.93 runs in the tighter-liquidity quartile — a thinner cushion against current liabilities for PEP.
PEP
Food, Beverage & Tobacco industry group
0.93
- Max
- 4.39
- Q3
- 2.39
- Median
- 1.43
- Q1
- 0.97
- PEP
- 0.93
- Min
- 0.33
PM
Food, Beverage & Tobacco industry group
0.98
- Max
- 4.39
- Q3
- 2.39
- Median
- 1.43
- PM
- 0.98
- Q1
- 0.97
- Min
- 0.33
Debt / Equity (MRQ)
Only one side’s leverage can be read here: PepsiCo (PEP) carries debt-to-equity ratio of 2.39 against its industry range, while Philip Morris (PM) reports no figure this period.
PEP
Food, Beverage & Tobacco industry group
2.39
- PEP
- 2.39
- Max
- 2.21
- Q3
- 1.16
- Median
- 0.72
- Q1
- 0.36
- Min
- 0.00
PM
Food, Beverage & Tobacco industry group
--
- Max
- 2.21
- Q3
- 1.16
- Median
- 0.72
- Q1
- 0.36
- Min
- 0.00
- PM
- --
Financial Strength Metrics
| Metric | PEP | PM |
|---|---|---|
| Current Ratio (MRQ) | 0.93 | 0.98 |
| Debt / Equity (MRQ) | 2.39 | -- |
| Net Debt / EBITDA | 2.25 | 2.39 |
Dividends
Dividend Yield (TTM)
PepsiCo (PEP) at 4.15% delivers top-quartile income for its industry, while Philip Morris (PM) at 3.13% pays a more typical yield — both are credible income propositions, PEP the richer one.
PEP
Food, Beverage & Tobacco industry group
4.15%
- Max
- 9.43%
- PEP
- 4.15%
- Q3
- 4.05%
- Median
- 2.43%
- Q1
- 0.00%
- Min
- 0.00%
PM
Food, Beverage & Tobacco industry group
3.13%
- Max
- 9.43%
- Q3
- 4.05%
- PM
- 3.13%
- Median
- 2.43%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Payout Ratio (TTM)
Both PepsiCo (PEP) at 75.33% and Philip Morris (PM) at 80.73% keep payout ratio within their industries’ typical mid-ranges — dividend policies that share earnings without consuming too much of them.
PEP
Food, Beverage & Tobacco industry group
75.33%
- Max
- 169.01%
- Q3
- 81.71%
- PEP
- 75.33%
- Median
- 40.15%
- Q1
- 0.00%
- Min
- 0.00%
PM
Food, Beverage & Tobacco industry group
80.73%
- Max
- 169.01%
- Q3
- 81.71%
- PM
- 80.73%
- Median
- 40.15%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Metrics
| Metric | PEP | PM |
|---|---|---|
| Dividend Yield (TTM) | 4.15% | 3.13% |
| Dividend Payout Ratio (TTM) | 75.33% | 80.73% |
Valuation
P/E Ratio (TTM)
Both PepsiCo (PEP) at 18.15 and Philip Morris (PM) at 25.83 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
18.15
- Max
- 55.06
- Q3
- 31.04
- Median
- 18.75
- PEP
- 18.15
- Q1
- 13.54
- Min
- 5.59
PM
Food, Beverage & Tobacco industry group
25.83
- Max
- 55.06
- Q3
- 31.04
- PM
- 25.83
- Median
- 18.75
- Q1
- 13.54
- Min
- 5.59
P/S Ratio (TTM)
PepsiCo (PEP) at 1.96 prices around its industry’s typical P/S ratio, while Philip Morris (PM) at 6.94 clears its benchmark range — PM looks notably rich on sales.
PEP
Food, Beverage & Tobacco industry group
1.96
- Max
- 4.40
- Q3
- 2.26
- PEP
- 1.96
- Median
- 1.10
- Q1
- 0.56
- Min
- 0.00
PM
Food, Beverage & Tobacco industry group
6.94
- PM
- 6.94
- Max
- 4.40
- Q3
- 2.26
- Median
- 1.10
- Q1
- 0.56
- Min
- 0.00
P/B Ratio (MRQ)
Philip Morris (PM) reports a negative P/B ratio of -34.42, meaning negative book equity — the multiple itself is not meaningful for valuation. Meanwhile PepsiCo (PEP) reports 8.59, ranking against industry peers normally.
PEP
Food, Beverage & Tobacco industry group
8.59
- PEP
- 8.59
- Max
- 5.86
- Q3
- 3.31
- Median
- 1.74
- Q1
- 0.93
- Min
- 0.00
PM
Food, Beverage & Tobacco industry group
-34.42
- Max
- 5.86
- Q3
- 3.31
- Median
- 1.74
- Q1
- 0.93
- Min
- 0.00
- PM
- -34.42
Valuation Metrics
| Metric | PEP | PM |
|---|---|---|
| P/E Ratio (TTM) | 18.15 | 25.83 |
| P/S Ratio (TTM) | 1.96 | 6.94 |
| P/B Ratio (MRQ) | 8.59 | -34.42 |
| Free Cash Flow Yield (TTM) | 4.12% | 3.29% |