Quick verdict: KO vs PM in 2026

Overall, Philip Morris International (PM) holds a discernible edge over The Coca-Cola Company (KO) in this 2026 stock comparison, particularly in growth and analyst sentiment. PM emerges as the growth leader with its significantly higher revenue growth, while also being positioned as the value leader with a slightly lower P/E ratio and a notably different P/B profile. KO, however, maintains its strong position as the margin leader in terms of net profitability. Analysts clearly favor PM, and it currently offers the most upside based on consensus price targets. Not investment advice.

KO vs PM: key metrics side by side

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

KO vs PM valuation comparison

When assessing KO vs PM valuation in 2026, Philip Morris International (PM) generally appears to be the more attractively valued stock based on traditional metrics. PM’s P/E ratio stands at 23.9x, slightly lower than Coca-Cola’s (KO) P/E of 24.67x. This indicates that investors are paying slightly less for each dollar of PM’s earnings compared to KO. Furthermore, the P/B ratio presents a stark difference; KO trades at 10.05x book value, while PM’s P/B is reported as -28.58x, suggesting a complex balance sheet structure or significant intangible assets influencing its book value, but presenting a much lower multiple relative to its book.

Despite PM’s seemingly lower valuation multiples, The Coca-Cola Company (KO) shows a higher DCF upside potential. KO’s Discounted Cash Flow (DCF) model indicates an upside of +37.5% from its current price of $78.561 to a fair value of $108.0. In contrast, PM’s DCF suggests an upside of +22.4% from its current price of $169.7 to a fair value of $207.65. While PM has a lower P/E and P/B, KO’s substantially higher DCF upside points to greater potential for capital appreciation according to this valuation method, making it potentially cheaper when considering future cash flow generation. However, based on current earnings and book value, PM appears cheaper on a relative basis.

KO vs PM growth comparison

In the realm of growth, Philip Morris International (PM) demonstrates stronger momentum compared to The Coca-Cola Company (KO) as of 2026. PM reported a year-over-year revenue growth of +7.3%, significantly outperforming KO’s +1.9%. This substantial difference highlights PM’s ability to expand its top-line faster, potentially driven by its focus on reduced-risk products and expansion into new markets. While both companies operate in consumer defensive sectors, PM’s strategic shifts appear to be yielding more robust revenue increases, indicating a more dynamic growth trajectory.

Looking beyond just revenue, PM also exhibits superior margins in several key areas which could fuel future growth. PM’s EBITDA margin stands at 42.76%, which is notably higher than KO’s 37.77%. Similarly, PM’s gross margin of 67.3% surpasses KO’s 61.74%. These stronger operational margins suggest that PM is more efficient at converting revenue into profit before interest, taxes, depreciation, and amortization. While specific forward estimates for both companies would provide more granular insight into future expectations, the current data suggests PM possesses stronger fundamental growth characteristics and better operational efficiency to sustain that momentum. This makes PM a compelling consideration for investors prioritizing growth in their ko vs pm stock comparison 2026 analysis.

KO vs PM profitability

When examining KO vs PM profitability, The Coca-Cola Company (KO) currently holds a slight edge in net margin. KO boasts a net margin of 27.8%, indicating that for every dollar of revenue, nearly 28 cents are converted into net profit. Philip Morris International (PM), while highly profitable itself, registers a slightly lower net margin of 26.74%. This difference suggests that KO is marginally more efficient at controlling its costs and converting revenue into bottom-line earnings, making it a stronger performer in terms of ultimate profitability for shareholders.

However, a broader view of profitability metrics reveals some nuances. While KO leads in net margin, PM shows superior EBITDA and Gross margins, at 42.76% and 67.3% respectively, compared to KO’s 37.77% EBITDA margin and 61.74% gross margin. This suggests PM has better operational efficiency at the higher levels of the income statement, before accounting for certain non-operating expenses, interest, and taxes. Both companies report N/A% for Return on Equity (ROE), preventing a direct comparison on this specific leverage-based profitability metric. In terms of cash generation, PM has a slightly higher Free Cash Flow (FCF) yield of 4.03% compared to KO’s 3.72%, indicating that PM generates slightly more cash relative to its market capitalization. Overall, while KO has a stronger net margin, PM demonstrates robust operational margins and a slightly better FCF yield.

Analyst ratings: KO vs PM

The consensus among financial analysts leans more favorably towards Philip Morris International (PM) when conducting a ko vs pm stock comparison 2026. PM currently has a higher percentage of ‘Buy’ ratings, with 68.0% of the 25 analysts covering the stock recommending it as a buy. This compares to The Coca-Cola Company (KO), where 60.4% of the 48 analysts covering the stock have a ‘Buy’ recommendation. Both stocks have a ‘Buy’ consensus overall, reflecting general confidence in their future performance within the consumer defensive sector.

Furthermore, analysts project slightly more upside potential for PM. The consensus price target for PM is $187.6, representing an upside of +10.5% from its current price of $169.7. For KO, the consensus price target is $85.71, indicating a +9.1% upside from its current price of $78.561. This indicates that while both stocks are expected to appreciate, analysts foresee a slightly greater percentage return from PM in the short to medium term. Additionally, PM’s FMP rating is B-, while KO’s is B, suggesting that while both are solid, KO is marginally stronger according to this proprietary rating.

Should I buy KO or PM stock in 2026?

For investors prioritizing growth, Philip Morris International (PM) appears to be the more compelling choice in this ko vs pm stock comparison 2026. Its impressive year-over-year revenue growth of +7.3% significantly outpaces KO’s +1.9%. This stronger top-line expansion, coupled with higher gross and EBITDA margins, suggests PM has greater momentum and operational efficiency to drive future earnings. While KO is a consistent performer, PM’s pivot towards reduced-risk products and international market expansion may offer more dynamic growth prospects for those looking for companies with stronger forward momentum.

From a value investment perspective, the decision between KO and PM requires a closer look at various metrics. PM currently trades at a slightly lower P/E ratio of 23.9x compared to KO’s 24.67x, and its P/B ratio of -28.58x, while complex, indicates a stark difference from KO’s 10.05x. This suggests PM could be considered cheaper on a per-earnings and per-book basis. However, KO shows a significantly higher DCF upside of +37.5% compared to PM’s +22.4%, implying that its intrinsic value offers greater potential for capital appreciation over the long term. Value investors need to weigh current multiples against discounted cash flow potential when deciding should i buy ko or pm stock 2026.

For income-focused investors, both KO and PM offer identical dividend yields of 0.03% as of 2026-05-07. Both companies are known for their consistent dividend payments, making them attractive staples for portfolios seeking stable income. However, with yields being exactly the same, the choice between them would likely come down to other factors such as capital appreciation potential, growth outlook, or overall financial stability. Ultimately, both offer a similar income proposition. This is not investment advice; always conduct your own thorough research.

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