Quick verdict: CL vs MO in 2026

In the detailed `cl vs mo stock comparison 2026`, Altria Group, Inc. (MO) holds a significant overall edge across many financial metrics, leading on 10 out of 12 comparable points. Colgate-Palmolive (CL) is the growth leader with positive revenue growth, while MO stands out as the value and margin leader. Analysts currently favor MO, though CL offers a higher price target upside. This is not investment advice.

CL vs MO: key metrics side by side

Full side-by-side comparison of CL and MO across valuation, profitability, growth and analyst sentiment. Data updated 2026-05-07.

CL vs MO valuation comparison

When assessing `cl vs mo fundamentals and valuation` for 2026, Altria Group (MO) appears to be significantly undervalued compared to Colgate-Palmolive (CL) across several key metrics. MO trades at a P/E ratio of 14.42x, which is substantially lower than CL’s P/E of 33.53x. This suggests that investors are paying a much higher premium for CL’s earnings, indicating MO could be a more attractive option for value-oriented investors based on earnings multiples alone.

Furthermore, the discounted cash flow (DCF) model suggests a greater upside for MO. Its DCF indicates a potential upside of +60.0%, significantly outperforming CL’s +33.1% DCF upside. This implies that MO’s intrinsic value is considerably higher than its current market price compared to CL. While CL has a positive P/B ratio of 482.54x, MO’s P/B is negative at -36.15x, which typically indicates negative shareholder equity due to factors like aggressive share buybacks or accumulated losses. However, taken together, these valuation metrics strongly position MO as the cheaper stock from a multiples and intrinsic value perspective in this `cl vs mo valuation 2026` analysis.

CL vs MO growth comparison

In terms of revenue expansion, Colgate-Palmolive (CL) currently demonstrates stronger top-line momentum. CL reported a positive year-over-year revenue growth of 1.4%, signaling consistent, albeit modest, expansion in its market. In contrast, Altria Group (MO) experienced a revenue decline of -1.5% over the same period, indicating headwinds in its primary markets. For investors prioritizing top-line growth, CL appears to have the stronger immediate trajectory.

Despite CL’s positive revenue growth, MO showcases vastly superior profitability margins, which can be a strong indicator of an efficient and financially robust business, even with declining revenue. MO boasts an impressive net margin of 36.91% and an EBITDA margin of 53.61%, dwarfing CL’s net margin of 10.04% and EBITDA margin of 18.84%. While CL has stronger revenue growth, MO’s ability to convert sales into profits at a much higher rate is a critical factor in understanding their fundamental strength. Therefore, when evaluating `cl vs mo earnings growth comparison`, investors should weigh CL’s positive revenue growth against MO’s exceptional profitability margins.

CL vs MO profitability

Altria Group (MO) unequivocally leads Colgate-Palmolive (CL) in profitability, showcasing a significantly more efficient operation. MO’s net margin stands at an impressive 36.91%, meaning it converts a much larger portion of its revenue into profit compared to CL, which has a net margin of 10.04%. This vast difference highlights MO’s ability to maintain higher pricing power or control costs more effectively within its business model.

This superior profitability extends to the operational level, with MO’s EBITDA margin at 53.61% compared to CL’s 18.84%. Such robust operational efficiency allows MO to generate substantial earnings before non-cash expenses, underscoring its financial strength. Both companies report “N/A%” for Return on Equity (ROE), preventing a direct comparison on that specific metric. However, when examining free cash flow generation, MO again demonstrates an advantage with a free cash flow (FCF) yield of 7.44%, higher than CL’s 5.38%, indicating it generates more cash relative to its market capitalization. This suggests that MO is far more effective at converting its operations into tangible cash, making it the clear leader in `cl vs mo profitability comparison`.

Analyst ratings: CL vs MO

The sentiment among financial analysts regarding these two consumer defensive giants shows a preference for Altria Group (MO). Out of 26 analysts covering MO, a notable 61.5% have a “Buy” rating, leading to a strong “Buy” consensus. Their collective price target for MO is $71.67, suggesting a modest +3.3% upside from its current price of $69.39. This indicates a general belief among analysts that MO’s current valuation is attractive and offers some potential for appreciation.

In contrast, Colgate-Palmolive (CL) receives a more cautious outlook from analysts. Of the 45 analysts tracking CL, 42.2% recommend a “Buy,” resulting in an overall “Hold” consensus. While this is not a bearish stance, it suggests less conviction in CL’s immediate upside compared to MO. The consensus price target for CL is $94.9, which represents a higher potential upside of +8.8% from its current price of $87.21. Despite this greater implied price target upside, the higher percentage of “Buy” ratings and the overall “Buy” consensus for MO suggest it is the more favored stock by analysts in this `cl vs mo analyst ratings and recommendations` review.

Should I buy CL or MO stock in 2026?

Deciding `should i buy cl or mo stock 2026` hinges significantly on an investor’s specific objectives and risk tolerance. For growth-oriented investors, Colgate-Palmolive (CL) might present a more appealing option. While its revenue growth of 1.4% is modest, it is positive, unlike Altria Group’s (MO) -1.5% decline. CL’s consistent performance in essential consumer goods could offer stability and long-term, albeit slower, expansion, making it attractive for those prioritizing gradual top-line growth.

Value investors, on the other hand, might find Altria Group (MO) to be the more compelling choice based on `cl vs mo fundamentals and valuation`. MO’s P/E ratio of 14.42x is considerably lower than CL’s 33.53x, suggesting it trades at a significant discount relative to its earnings. Furthermore, MO boasts a DCF upside of +60.0%, indicating a much higher intrinsic value compared to its current price, while also offering a superior free cash flow yield of 7.44% versus CL’s 5.38%. These metrics position MO as a stronger candidate for those seeking undervalued assets.

For income-focused investors, Altria Group (MO) also stands out as the better option due to its higher dividend yield of 0.06% compared to CL’s 0.02%. While both are considered consumer defensive stocks, MO’s greater profitability (net margin of 36.91% vs CL’s 10.04%) and stronger analyst consensus for a “Buy” rating suggest it is more favored by the market for its income-generating potential and perceived value. Ultimately, the choice between CL and MO in 2026 requires careful consideration of these distinct financial profiles. This is not investment advice.

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