PepsiCo, Inc. (PEP) vs Philip Morris International Inc. (PM)
PEP and PM are evenly matched — 8 metrics each of 16.
A side-by-side comparison of PepsiCo, Inc. and Philip Morris International Inc. across valuation, profitability, dividends, and growth — built entirely from reported fundamentals, as of June 28, 2026. The ● marks the stronger figure on each row (cheaper multiple, higher margin/return).
PEP
PepsiCo, Inc.
$141.39Consumer Defensive
PM
Philip Morris International Inc.
$180.77Consumer Defensive
Total return — PEP vs PM
growth of $100 · last 18yPEP +106.6%PM +266.0%PM compounded faster
PEP PM
PEP vs PM: by the numbers
- •PM is the larger company ($281.74B vs $193.27B market cap).
- •PEP trades at the lower earnings multiple (22.20 vs 25.42 P/E).
- •PM converts more revenue to profit (26.74% vs 9.16% net margin).
- •PM grew revenue faster over the past five years (7.34% vs 6.00% CAGR).
- •PEP pays the higher dividend yield (4.19% vs 3.25%).
Which is better, PEP or PM?
Metric tally: PEP 8 · PM 8It depends on what you're optimizing for:
ValuePEP(lower P/E)
GrowthPM(faster 5Y revenue CAGR)
IncomePEP(higher dividend yield)
QualityPM(higher ROIC)
Metrics side by side
Valuation
| Metric | PEP | PM |
|---|---|---|
| P/E ratio | 22.20● | 25.42 |
| Forward P/E | 15.58● | 19.81 |
| P/S ratio | 2.03● | 6.81 |
| P/B ratio | 9.07 | — |
| PEG ratio | 9.25 | 0.36● |
| EV / EBITDA | 12.85● | 19.01 |
| FCF yield | 4.56%● | 3.78% |
Profitability
| Metric | PEP | PM |
|---|---|---|
| Gross margin | 54.06% | 67.30%● |
| Operating margin | 14.79% | 36.83%● |
| Net margin | 9.16% | 26.74%● |
| ROE | 40.89%● | -113.55% |
| ROIC | 13.29% | 25.56%● |
Dividends
| Metric | PEP | PM |
|---|---|---|
| Dividend yield | 4.19%● | 3.25% |
| Payout ratio | 98.18% | 80.88% |
Growth (annualized)
| Metric | PEP | PM |
|---|---|---|
| Revenue CAGR (5Y) | 6.00% | 7.34%● |
| EPS CAGR (5Y) | 2.40% | 7.10%● |
| FCF CAGR (5Y) | 6.62%● | 4.58% |
| Total return CAGR (5Y) | 2.49% | 17.89%● |
Frequently asked
- Which is better, PEP or PM?
- It depends on your goal. value: PEP (lower P/E); growth: PM (faster 5Y revenue CAGR); income: PEP (higher dividend yield); quality: PM (higher ROIC). Across all compared metrics, they are evenly matched.
- Is PEP or PM cheaper?
- On trailing earnings, PEP is cheaper: PEP trades at a 22.20 P/E and PM at 25.42.
- Which has grown faster, PEP or PM?
- Over the past five years, PM grew revenue faster — PEP at a 6.00% CAGR versus PM at 7.34%.
- Does PEP or PM pay a bigger dividend?
- PEP yields 4.19% and PM yields 3.25% based on trailing dividends and the latest price.
- Is PEP or PM more profitable?
- PM runs the higher net margin — PEP at 9.16% versus PM at 26.74%.
- Which has been the better investment, PEP or PM?
- Over the past 10-year, PM delivered the higher annualized total return — PEP at 6.53% versus PM at 11.61%. Past performance doesn't predict future results.
Go deeper
Dig into the metrics
PepsiCo P/E ratioPhilip Morris International P/E ratioPepsiCo dividend yieldPhilip Morris International dividend yieldPepsiCo ROEPhilip Morris International ROEPepsiCo operating marginPhilip Morris International operating marginPepsiCo revenue growthPhilip Morris International revenue growthPepsiCo free cash flowPhilip Morris International free cash flow
PepsiCo & Philip Morris International appear in these rankings
Figures are sourced from reported fundamentals and the latest end-of-day price. This comparison is informational only and is not investment advice. Past performance does not predict future results. See our methodology. Compiled by TGMCharts Research · data verified June 28, 2026.