The Coca-Cola Company (KO)vsPhilip Morris International Inc (PM)
KO
The Coca-Cola Company
$89.13
+0.92%
CONSUMER DEFENSIVE · Cap: $353.32B
PM
Philip Morris International Inc
$200.17
-0.86%
CONSUMER DEFENSIVE · Cap: $302.83B
Smart Verdict
WallStSmart Research — data-driven comparison
The Coca-Cola Company generates 19% more annual revenue ($49.28B vs $41.49B). KO leads profitability with a 27.8% profit margin vs 26.7%. PM appears more attractively valued with a PEG of 2.62. KO earns a higher WallStSmart Score of 65/100 (B-).
KO
Strong Buy65
out of 100
Grade: B-
PM
Buy52
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-42.9%
Fair Value
$61.78
Current Price
$89.13
$27.35 premium
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
Mega-cap, among the largest globally
Every $100 of equity generates 41 in profit
Strong operational efficiency at 35.1%
Keeps 28 of every $100 in revenue as profit
Generating 1.8B in free cash flow
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
Moderate valuation
Trading at 11.4x book value
Elevated debt levels
Expensive relative to growth rate
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 : KO
The strongest argument for KO centers on Market Cap, Return on Equity, Operating Margin. Profitability is solid with margins at 27.8% and operating margin at 35.1%. Revenue growth of 12.1% demonstrates continued momentum.
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 : KO
The primary concerns for KO are P/E Ratio, Price/Book, Debt/Equity.
Bear Case : PM
The primary concerns for PM are P/E Ratio, Return on Equity, PEG Ratio.
Key Dynamics to Monitor
PM carries more volatility with a beta of 0.41 — expect wider price swings.
KO is growing revenue faster at 12.1% — 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 (65/100 vs 52/100), backed by strong 27.8% margins and 12.1% revenue growth. Both earn "Strong 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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