Which has the lower trailing P/E, PEP or PM?

PEP has the lower trailing P/E: PEP trades at 16.86 and PM at 27.37. P/E is one valuation measure and does not by itself establish which business is cheaper.

Which has grown faster, PEP or PM?

Over the past five years, PM grew revenue faster — PEP at a 5.37% CAGR versus PM at 7.19%.

Does PEP or PM pay a bigger dividend?

PEP yields 4.26% and PM yields 3.08% based on trailing dividends and the latest price.

Is PEP or PM more profitable?

PM runs the higher net margin — PEP at 10.82% versus PM at 25.56%.

How have PEP and PM total returns compared?

Over the past 10 years, PEP delivered 5.97% and PM delivered 12.40% annualized total return. Past performance doesn't predict future results.

PepsiCo, Inc. (PEP) vs Philip Morris International Inc. (PM)

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 September 13, 2026. Differences are shown without an overall score or investment verdict.

PEP

PepsiCo, Inc.

$175.71B

$128.63Consumer DefensiveDelayed quote: Sep 25, 2026, 4:00 PM EDT

Philip Morris International Inc.

$296.88B

$190.48Consumer DefensiveDelayed quote: Sep 25, 2026, 4:00 PM EDT

Total return — PEP vs PM

growth of $100 · dividends reinvested · last 10y

PEP +75.2% (+5.8%/yr)PM +207.7% (+11.9%/yr)PM compounded faster over this window

PEP PM

PEP vs PM: by the numbers

•PM is the larger company ($296.88B vs $175.71B market cap).
•PEP trades at the lower trailing earnings multiple (16.86 vs 27.37 P/E), one valuation lens rather than an overall verdict.
•PM converts more revenue to profit (25.56% vs 10.82% net margin).
•PM grew revenue faster over the past five years (7.19% vs 5.37% CAGR).
•PEP pays the higher dividend yield (4.26% vs 3.08%).

Metrics side by side

Valuation

Metric	PEP	PM
P/E ratio	16.86	27.37
Forward P/E	15.04	22.75
P/S ratio	1.81	6.98
P/B ratio	7.95	N/A
EV / EBITDA	11.60	18.78
FCF yield	5.28%	4.29%

Profitability

Metric	PEP	PM
Gross margin	53.96%	67.51%
Operating margin	14.96%	37.75%
Net margin	10.82%	25.56%
ROE	47.45%	N/A
ROIC	13.22%	26.30%

Dividends

Metric	PEP	PM
Dividend yield	4.26%	3.08%
Payout ratio	76.08%	84.48%

Growth (annualized)

Metric	PEP	PM
Revenue CAGR (5Y)	5.37%	7.19%
EPS CAGR (5Y)	3.25%	7.10%
FCF CAGR (5Y)	5.40%	4.43%
Total return CAGR (5Y)	0.61%	18.46%

Frequently asked

Which has the lower trailing P/E, PEP or PM?: PEP has the lower trailing P/E: PEP trades at 16.86 and PM at 27.37. P/E is one valuation measure and does not by itself establish which business is cheaper.
Which has grown faster, PEP or PM?: Over the past five years, PM grew revenue faster — PEP at a 5.37% CAGR versus PM at 7.19%.
Does PEP or PM pay a bigger dividend?: PEP yields 4.26% and PM yields 3.08% based on trailing dividends and the latest price.
Is PEP or PM more profitable?: PM runs the higher net margin — PEP at 10.82% versus PM at 25.56%.
How have PEP and PM total returns compared?: Over the past 10 years, PEP delivered 5.97% and PM delivered 12.40% annualized total return. Past performance doesn't predict future results.

Go deeper

Full PEP analysis Full PM analysis Interactive comparison tool

Dig into the metrics

PepsiCo P/E ratio Philip Morris International P/E ratio PepsiCo dividend yield Philip Morris International dividend yield PepsiCo ROE Philip Morris International ROE PepsiCo operating margin Philip Morris International operating margin PepsiCo revenue growth Philip Morris International revenue growth PepsiCo free cash flow Philip Morris International free cash flow

PepsiCo & Philip Morris International appear in these rankings

Highest Dividend Yield Stocks 25+ Year Dividend Growers Highest ROE Stocks Highest ROIC Stocks

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 September 13, 2026.