The Coca-Cola Company (KO)vsPhilip Morris International Inc (PM)
KO
The Coca-Cola Company
$88.29
+0.52%
CONSUMER DEFENSIVE · Cap: $379.87B
PM
Philip Morris International Inc
$191.06
+0.68%
CONSUMER DEFENSIVE · Cap: $297.79B
Smart Verdict
WallStSmart Research — data-driven comparison
The Coca-Cola Company generates 18% more annual revenue ($50.13B vs $42.55B). KO leads profitability with a 28.6% profit margin vs 25.6%. PM appears more attractively valued with a PEG of 2.28. KO earns a higher WallStSmart Score of 63/100 (C+).
KO
Buy63
out of 100
Grade: C+
PM
Buy54
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-40.1%
Fair Value
$63.02
Current Price
$88.29
$25.27 premium
Margin of Safety
-67.5%
Fair Value
$114.04
Current Price
$191.06
$77.02 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 40 in profit
Strong operational efficiency at 34.9%
Keeps 29 of every $100 in revenue as profit
Generating 5.1B in free cash flow
Mega-cap, among the largest globally
Strong operational efficiency at 40.0%
Conservative balance sheet, low leverage
Keeps 26 of every $100 in revenue as profit
Generating 5.1B in free cash flow
Areas to Watch
Moderate valuation
Trading at 10.5x book value
Elevated debt levels
Expensive relative to growth rate
Expensive relative to growth rate
Moderate valuation
ROE of 0.0% — below average capital efficiency
Earnings declined 7.5%
Comparative Analysis Report
WallStSmart ResearchBull Case : KO
The strongest argument for KO centers on Market Cap, Return on Equity, Operating Margin. Profitability is solid with margins at 28.6% and operating margin at 34.9%.
Bull Case : PM
The strongest argument for PM centers on Market Cap, Operating Margin, Debt/Equity. Profitability is solid with margins at 25.6% and operating margin at 40.0%. Revenue growth of 10.4% demonstrates continued momentum.
Bear Case : KO
The primary concerns for KO are P/E Ratio, Price/Book, Debt/Equity.
Bear Case : PM
The primary concerns for PM are PEG Ratio, P/E Ratio, Return on Equity.
Key Dynamics to Monitor
PM carries more volatility with a beta of 0.40 — expect wider price swings.
PM is growing revenue faster at 10.4% — sustainability is the question.
PM generates stronger free cash flow (5.1B), providing more financial flexibility.
Monitor BEVERAGES - NON-ALCOHOLIC industry trends, competitive dynamics, and regulatory changes.
Bottom Line
KO scores higher overall (63/100 vs 54/100), backed by strong 28.6% margins. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
The Coca-Cola Company
CONSUMER DEFENSIVE · BEVERAGES - NON-ALCOHOLIC · USA
The Coca-Cola Company is an American multinational beverage corporation incorporated under Delaware's General Corporation Law and headquartered in Atlanta, Georgia. The Coca-Cola Company has interests in the manufacturing, retailing, and marketing of nonalcoholic beverage concentrates and syrups.
Visit Website →Philip Morris International Inc
CONSUMER DEFENSIVE · TOBACCO · USA
Philip Morris International Inc. (PMI) is a Swiss-American multinational cigarette and tobacco manufacturing company, with products sold in over 180 countries. The most recognized and best selling product of the company is Marlboro.
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