Keurig Dr Pepper Inc (KDP)vsPhilip Morris International Inc (PM)
KDP
Keurig Dr Pepper Inc
$31.45
+1.19%
CONSUMER DEFENSIVE · Cap: $42.05B
PM
Philip Morris International Inc
$200.17
-0.86%
CONSUMER DEFENSIVE · Cap: $302.83B
Smart Verdict
WallStSmart Research — data-driven comparison
Philip Morris International Inc generates 145% more annual revenue ($41.49B vs $16.94B). PM leads profitability with a 26.7% profit margin vs 10.8%. KDP appears more attractively valued with a PEG of 1.03. KDP earns a higher WallStSmart Score of 59/100 (C).
KDP
Buy59
out of 100
Grade: C
PM
Buy52
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+56.7%
Fair Value
$68.96
Current Price
$31.45
$37.51 discount
Margin of Safety
-79.3%
Fair Value
$110.70
Current Price
$200.17
$89.47 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Mega-cap, among the largest globally
Strong operational efficiency at 36.0%
Conservative balance sheet, low leverage
Keeps 27 of every $100 in revenue as profit
Generating 5.1B in free cash flow
Areas to Watch
ROE of 7.3% — below average capital efficiency
Elevated debt levels
Earnings declined 47.7%
Distress zone — elevated risk
Moderate valuation
ROE of 0.0% — below average capital efficiency
Expensive relative to growth rate
Earnings declined 9.3%
Comparative Analysis Report
WallStSmart ResearchBull Case : KDP
The strongest argument for KDP centers on Price/Book. PEG of 1.03 suggests the stock is reasonably priced for its growth.
Bull Case : PM
The strongest argument for PM centers on Market Cap, Operating Margin, Debt/Equity. Profitability is solid with margins at 26.7% and operating margin at 36.0%.
Bear Case : KDP
The primary concerns for KDP are Return on Equity, Debt/Equity, EPS Growth.
Bear Case : PM
The primary concerns for PM are P/E Ratio, Return on Equity, PEG Ratio.
Key Dynamics to Monitor
KDP profiles as a value stock while PM is a mature play — different risk/reward profiles.
KDP carries more volatility with a beta of 0.41 — expect wider price swings.
KDP is growing revenue faster at 9.4% — sustainability is the question.
PM generates stronger free cash flow (5.1B), providing more financial flexibility.
Bottom Line
KDP scores higher overall (59/100 vs 52/100). 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.
Keurig Dr Pepper Inc
CONSUMER DEFENSIVE · BEVERAGES - NON-ALCOHOLIC · USA
Keurig Dr Pepper Inc. is a beverage company in the United States and internationally. The company is headquartered in Burlington, Massachusetts.
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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