Philip Morris International vs PepsiCo

Philip Morris International and PepsiCo are compared here to help readers understand how their business models, financial performance, and market context differ. This page presents neutral, accessible information about each company, the industries they operate in, and how they position themselves in the global market. Educational content, not financial advice.

Philip Morris International and PepsiCo are compared here to help readers understand how their business models, financial performance, and market context differ. This page presents neutral, accessible...

Comparison Snapshot

Key Financial Metrics

PM

Metric

PEP

$273.59B

Market Cap

$199.45B

-1.84%

Potential Profit

8.21%

Buy

Analyst Rating

Hold

Why It's Moving

Philip Morris Ramps Up U.S. Push with New Business Units and $20B+ Investments to Accelerate Smoke-Free Shift.

New PMI U.S. unit under Stacey Kennedy targets ZYN expansion and IQOS rollout, bolstering supply chains and capturing rising demand for reduced-risk alternatives.
PMI International, led by Frederic de Wilde, drives multicategory smoke-free strategy outside the U.S., balancing combustibles decline with harm reduction gains.
Experts urged FDA's TPSAC on January 22 to approve ZYN as a Modified Risk Tobacco Product, building on prior authorizations to enhance market positioning.

Sentiment:

🐃Bullish

PepsiCo Launches Groundbreaking AI Digital Twin Partnership at CES 2026 to Supercharge Operations

Multi-year deal deploys physics-based digital twins to optimize production processes, potentially driving margin gains and countering recent commodity pressures.
Beverages segment shows strength with expected 150 basis point margin expansion from pricing, offsetting food unit challenges.
FY26 outlook reiterated with confidence despite Q4 margin squeeze from aluminum tariffs, signaling strategic focus on growth amid Elliott Management priorities.

Sentiment:

🐃Bullish

Philip Morris Ramps Up U.S. Push with New Business Units and $20B+ Investments to Accelerate Smoke-Free Shift.

New PMI U.S. unit under Stacey Kennedy targets ZYN expansion and IQOS rollout, bolstering supply chains and capturing rising demand for reduced-risk alternatives.
PMI International, led by Frederic de Wilde, drives multicategory smoke-free strategy outside the U.S., balancing combustibles decline with harm reduction gains.
Experts urged FDA's TPSAC on January 22 to approve ZYN as a Modified Risk Tobacco Product, building on prior authorizations to enhance market positioning.

Sentiment:

🐃Bullish

PepsiCo Launches Groundbreaking AI Digital Twin Partnership at CES 2026 to Supercharge Operations

Multi-year deal deploys physics-based digital twins to optimize production processes, potentially driving margin gains and countering recent commodity pressures.
Beverages segment shows strength with expected 150 basis point margin expansion from pricing, offsetting food unit challenges.
FY26 outlook reiterated with confidence despite Q4 margin squeeze from aluminum tariffs, signaling strategic focus on growth amid Elliott Management priorities.

Sentiment:

🐃Bullish

Investment Analysis

Philip Morris International

PM

Pros

Philip Morris International has a large market capitalization of approximately $233 billion, indicating strong market presence and stability.
The company is transitioning strategically to smoke-free products, which may drive future growth amid shifting global tobacco regulations.
Philip Morris recently reported robust Q3 2025 earnings along with a dividend increase, reflecting financial resilience.

Considerations

The stock has a bearish trading sentiment with price forecasts indicating a potential decline of about 9% by year-end 2025.
Philip Morris International's return on equity (ROE) is significantly negative at around -75%, indicating poor profitability efficiency compared to peers.
Ongoing regulatory challenges in different countries introduce execution risks and short-term volatility for the firm.

PepsiCo

PEP

Pros

PepsiCo maintains a strong ROE of approximately 39%, demonstrating effective profitability compared to Philip Morris.
The company holds a diversified product portfolio across beverages and snacks, reducing dependency on any one sector and supporting stable revenue streams.
PepsiCo benefits from a globally recognised brand with wide distribution, which supports competitive positioning and growth potential.

Considerations

PepsiCo operates in a highly competitive consumer goods industry exposed to commodity price volatility impacting input costs.
Growth may be constrained by macroeconomic pressures such as inflation and changing consumer preferences that affect discretionary spending.
The company faces regulatory and health trend pressures related to sugar and processed food products, requiring ongoing adaptation.

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About The Companies

Philip Morris International (PM)

Philip Morris International (PM) is a large global tobacco company (market cap ~$236.6bn) known for major cigarette brands and a strategic shift toward reduced‑risk, smoke‑free products such as heated tobacco and vapour devices. The firm offers predictable cash flow and historically strong margins, underpinned by established brands and broad geographic reach outside the US. Investors often watch PM for its transition execution — the pace of adoption of smoke‑free products, regulatory developments, and pricing power in key markets. Key risks include regulatory and litigation exposure, declining combustible cigarette volumes in many countries, currency and emerging‑market volatility, and ESG considerations. PM typically returns cash to shareholders through dividends and buybacks, but past performance is no guarantee of future returns. This is general educational information, not personalised investment advice; consider your objectives and suitability, and consult a financial adviser before making decisions.

PepsiCo (PEP)

PepsiCo, Inc. (PEP) is a leading global food and beverage company, producing well-known brands such as Pepsi, Lay's, Gatorade and Quaker. With a market capitalisation around $209.45B, PepsiCo operates across beverages, savoury snacks and nutrition, combining stable, often recession-resilient revenue streams with steady cash generation and a long track record of dividends. Investors should note its broad geographic footprint, diversified product mix and ongoing efforts in product innovation, e-commerce and sustainability. Key risks include exposure to commodity cost swings, foreign-exchange shifts, changing consumer tastes and regulatory or public-health pressures. Growth tends to come from pricing, premiumisation, new product launches and faster growth in emerging markets, but competition is intense. This summary is educational only — not personalised investment advice. Values can fall as well as rise; prospective investors should consider their objectives, time horizon and risk tolerance and may wish to consult a qualified adviser before acting.

Philip Morris International (PM) Next Earnings Date

Philip Morris International's next earnings date is expected on February 5, 2026, covering the Q4 2025 results. Some sources indicate a possible release on February 6, 2026, reflecting minor variations in analyst estimates based on historical patterns. This report will provide key insights into full-year 2025 performance ahead of the company's typical early-February cadence.

PepsiCo (PEP) Next Earnings Date

PepsiCo (PEP) is expected to report its next earnings on February 3, 2026, covering the Q4 2025 period, consistent with the company's historical quarterly reporting pattern following the Q3 2025 release on October 9, 2025. Most sources project this date before market open, though one indicates February 6 for the earnings call. Investors should monitor for official confirmation as the date approaches.

Philip Morris International (PM) Next Earnings Date

Philip Morris International's next earnings date is expected on February 5, 2026, covering the Q4 2025 results. Some sources indicate a possible release on February 6, 2026, reflecting minor variations in analyst estimates based on historical patterns. This report will provide key insights into full-year 2025 performance ahead of the company's typical early-February cadence.

PepsiCo (PEP) Next Earnings Date

PepsiCo (PEP) is expected to report its next earnings on February 3, 2026, covering the Q4 2025 period, consistent with the company's historical quarterly reporting pattern following the Q3 2025 release on October 9, 2025. Most sources project this date before market open, though one indicates February 6 for the earnings call. Investors should monitor for official confirmation as the date approaches.

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Top Stocks for Recessions

These carefully selected stocks have shown remarkable resilience during economic downturns. Our team of professional analysts has identified companies that maintain stability when markets get shaky, giving you options for weathering financial storms.

Published: May 3, 2025

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Which Baskets Do They Appear In?

Top Stocks for Recessions

These carefully selected stocks have shown remarkable resilience during economic downturns. Our team of professional analysts has identified companies that maintain stability when markets get shaky, giving you options for weathering financial storms.

Published: May 3, 2025

Explore Basket

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Comparison Snapshot

Why It's Moving

Philip Morris Ramps Up U.S. Push with New Business Units and $20B+ Investments to Accelerate Smoke-Free Shift.

PepsiCo Launches Groundbreaking AI Digital Twin Partnership at CES 2026 to Supercharge Operations

Philip Morris Ramps Up U.S. Push with New Business Units and $20B+ Investments to Accelerate Smoke-Free Shift.

PepsiCo Launches Groundbreaking AI Digital Twin Partnership at CES 2026 to Supercharge Operations