MO vs KO Stock Comparison: AI Score, Valuation, Performance and Upside
MO vs KO compares two classic defensive dividend payers with very different growth and risk profiles. Altria offers one of the market's highest dividend yields backed by Marlboro's pricing power, but faces structural volume decline and regulatory risk in tobacco. Coca-Cola offers a lower yield but a longer dividend growth streak and a more globally diversified, less regulated business.
Altria suits income-focused investors prioritizing current yield above all else, who are comfortable with tobacco-specific regulatory and litigation risk and are watching the company's smoke-free pivot for a second growth leg. Coca-Cola suits investors who want a more internationally diversified defensive holding with a longer runway for consistent dividend growth and less industry-specific regulatory overhang.
KO holds the edge across 3 of 5 key metrics in this comparison. KO has delivered stronger 1-year price return (+31.35% vs +6.40%), though MO has the better forward P/E setup (11.71x vs 25.43x for KO). On fundamentals, KO is growing revenue faster (6.70%), while MO maintains the higher operating margin (61.46%) — a classic growth-versus-profitability split. Analyst consensus implies meaningfully more upside for KO (+5.62%) than for MO (+1.97%).
Human Wall Street analysts' price targets, typically implying a ~12-month view — a separate signal from this site's own AI Prediction Signal further down the page, which is a 5-/30-day machine-learning forecast based on price history alone.
- Prioritize maximizing current dividend income over long-term capital growth
- Are comfortable with tobacco-specific regulatory, litigation, and volume-decline risk
- Want to track Altria's progress transitioning toward smoke-free products
- Value Marlboro's pricing power as an offset to structurally declining volumes
- Want a globally diversified consumer staple with less regulatory overhang than tobacco
- Prioritize a long, uninterrupted dividend growth streak over a higher starting yield
- Prefer a capital-light business model with a wide international footprint
- Are building a lower-controversy defensive core holding
| Metric | MO | KO |
|---|---|---|
| AI scorei | 39.0 | 52.0 |
| AI ranki | #1297 | #418 |
| Latest closei | $69.70 | $88.06 |
| 1M returni | +6.92% | -0.86% |
| 6M returni | +7.12% | +16.56% |
| 1Y returni | +6.40% | +31.35% |
How much would $10,000 be worth today if invested at the start of each period, with all dividends reinvested?
| Period | MO | KO |
|---|---|---|
| 1Y ago | $10.9K (+9.0%) started 2025-09-18 | $13.25K (+32.5%) started 2025-09-18 |
| 5Y ago | $26.76K (+167.6%) started 2021-09-20 | $20.22K (+102.2%) started 2021-09-20 |
| 10Y ago | $44.39K (+343.9%) started 2016-09-19 | $37.22K (+272.2%) started 2016-09-19 |
Hypothetical — past performance does not guarantee future results.
| Metric | MO | KO |
|---|---|---|
| Market capi | $114.63B | $385.77B |
| Trailing P/Ei | 14.45 | 26.92 |
| Forward P/Ei | 11.71 | 25.43 |
| Price/Salesi | 4.93 | 6.55 |
| EV/Revenuei | 6.70 | 8.29 |
| Analyst targeti | $70.00 | $94.70 |
| Target upsidei | +1.97% | +5.62% |
| Metric | MO | KO |
|---|---|---|
| Revenue growthi | 1.20% | 6.70% |
| Earnings growthi | -2.70% | 16.90% |
| EPS growthi | -2.70% | +16.90% |
| FCF margini | +44.20% | +10.41% |
| Operating margini | 61.46% | 34.87% |
| Profit margini | 39.00% | 28.56% |
| ROIC proxyi | N/A | 42.05% |
| Return on equityi | N/A | 42.05% |
| Dividend yieldi | 6.47% | 2.36% |
| Payout ratioi | 89.26% | 62.46% |
| Dividend growth streaki | No increase yet | No increase yet |
| Betai | 0.49 | 0.34 |
| Debt/equityi | N/A | 115.52 |
| Current ratioi | 0.52 | 1.30 |
| Quick ratioi | 0.34 | 0.80 |
Over the past year, MO and KO have moved moderately in the same direction (correlation of 0.40), based on daily returns.
Lower drawdown and smaller single-period drops generally indicate a smoother ride, though they do not guarantee lower future risk.
| Period | Metric | MO | KO |
|---|---|---|---|
| 1Y | Growthi | +9.01% | +32.50% |
| CAGRi | +9.02% | +32.55% | |
| Volatilityi | 26.17% | 18.78% | |
| Sharpe ratioi | 0.29 | 1.36 | |
| Sortino ratioi | 0.39 | 2.26 | |
| Max drawdowni | 17.90% | 8.50% | |
| Current drawdowni | 6.97% | 4.27% | |
| Avg drawdowni | 6.35% | 2.75% | |
| Ulcer Indexi | 7.81% | 3.59% | |
| Max daily dropi | 9.32% | 3.96% | |
| Max wkly dropi | 12.82% | 5.54% | |
| 5Y | Growthi | +92.62% | +81.00% |
| CAGRi | +14.03% | +12.61% | |
| Volatilityi | 21.61% | 16.70% | |
| Sharpe ratioi | 0.51 | 0.53 | |
| Sortino ratioi | 0.68 | 0.77 | |
| Max drawdowni | 25.83% | 17.27% | |
| Current drawdowni | 6.97% | 4.27% | |
| Avg drawdowni | 8.63% | 4.69% | |
| Ulcer Indexi | 10.86% | 6.06% | |
| Max daily dropi | 9.32% | 6.96% | |
| Max wkly dropi | 12.82% | 7.43% | |
| 10Y | Growthi | +100.32% | +173.74% |
| CAGRi | +7.20% | +10.60% | |
| Volatilityi | 23.43% | 18.44% | |
| Sharpe ratioi | 0.22 | 0.40 | |
| Sortino ratioi | 0.30 | 0.55 | |
| Max drawdowni | 53.69% | 36.99% | |
| Current drawdowni | 6.97% | 4.27% | |
| Avg drawdowni | 16.19% | 5.57% | |
| Ulcer Indexi | 19.97% | 7.86% | |
| Max daily dropi | 10.03% | 9.67% | |
| Max wkly dropi | 17.90% | 20.98% |
| Category | MO | KO |
|---|---|---|
| Company | Altria | Coca-Cola |
| Sector | Consumer Defensive | Consumer Defensive |
| Industry | Tobacco | Beverages - Non-Alcoholic |
| Core business | Altria is the parent of Philip Morris USA, the maker of Marlboro, the dominant cigarette brand in the US market. As US cigarette volumes decline structurally each year, Altria has been investing in smoke-free alternatives, including oral nicotine pouches like on! PLUS and a stake in e-vapor, though its NJOY ACE device was pulled from the market in 2026 following a patent dispute with Juul. The company generates substantial free cash flow and returns most of it to shareholders through one of the market's highest dividend yields. | Coca-Cola is the world's largest beverage company, selling sparkling soft drinks, water, juices, teas, and coffee across more than 200 countries through a capital-light franchise bottling model. The company owns or licenses more than 200 brands and continues to diversify beyond carbonated soft drinks into water, sports drinks, and ready-to-drink categories. |
| Investor focus | High Current Yield + Smoke-Free Transition | Global Brand Moat + Dividend Growth |
- Very high dividend yield backed by strong pricing power and consistent free cash flow generation
- Marlboro's dominant US market share provides pricing power even as volumes decline
- Growing oral nicotine pouch business (on! PLUS) provides a smoke-free growth avenue with expanding retail distribution
- Unmatched global distribution network and brand recognition create a durable competitive moat
- Capital-light franchise bottling model generates high margins and consistent free cash flow
- Dividend King with over six decades of consecutive annual dividend increases
- US cigarette volumes continue to decline structurally every year, requiring continual price increases to offset
- NJOY ACE was withdrawn from the market in 2026 after a patent-infringement ruling, creating uncertainty around its e-vapor strategy
- Regulatory and litigation risk remains a persistent overhang on the tobacco industry
- Slowing volume growth in mature markets as consumers shift away from sugary sparkling beverages
- Currency headwinds from a large international revenue base can pressure reported results
- Regulatory and public health pressure targeting sparkling soft drinks and sugar content
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