WallStSmart

Altria Group (MO)vsPhilip Morris International Inc (PM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Philip Morris International Inc generates 104% more annual revenue ($41.49B vs $20.38B). MO leads profitability with a 39.5% profit margin vs 26.7%. PM appears more attractively valued with a PEG of 1.90. MO earns a higher WallStSmart Score of 61/100 (C+).

MO

Buy

61

out of 100

Grade: C+

Growth: 6.0Profit: 8.5Value: 4.7Quality: 6.5
Piotroski: 4/9Altman Z: 2.86

PM

Buy

54

out of 100

Grade: C-

Growth: 4.7Profit: 8.5Value: 4.0Quality: 5.3
Piotroski: 5/9Altman Z: 2.18
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

MOSignificantly Overvalued (-37.7%)

Margin of Safety

-37.7%

Fair Value

$47.88

Current Price

$74.55

$26.67 premium

UndervaluedFair: $47.88Overvalued
PMSignificantly Overvalued (-46.5%)

Margin of Safety

-46.5%

Fair Value

$115.51

Current Price

$166.38

$50.87 premium

UndervaluedFair: $115.51Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

MO6 strengths · Avg: 9.5/10
Profit MarginProfitability
39.5%10/10

Keeps 40 of every $100 in revenue as profit

Operating MarginProfitability
62.3%10/10

Strong operational efficiency at 62.3%

EPS GrowthGrowth
106.3%10/10

Earnings expanding 106.3% YoY

Debt/EquityHealth
-7.3410/10

Conservative balance sheet, low leverage

Market CapQuality
$124.64B9/10

Large-cap with strong market position

P/E RatioValuation
15.6x8/10

Attractively priced relative to earnings

PM3 strengths · Avg: 9.7/10
Market CapQuality
$263.69B10/10

Mega-cap, among the largest globally

Operating MarginProfitability
36.0%10/10

Strong operational efficiency at 36.0%

Profit MarginProfitability
26.7%9/10

Keeps 27 of every $100 in revenue as profit

Areas to Watch

MO2 concerns · Avg: 3.5/10
PEG RatioValuation
1.904/10

Expensive relative to growth rate

Return on EquityProfitability
0.0%3/10

ROE of 0.0% — below average capital efficiency

PM4 concerns · Avg: 2.8/10
PEG RatioValuation
1.904/10

Expensive relative to growth rate

Return on EquityProfitability
0.0%3/10

ROE of 0.0% — below average capital efficiency

EPS GrowthGrowth
-9.3%2/10

Earnings declined 9.3%

Free Cash FlowQuality
$-752.00M2/10

Negative free cash flow — burning cash

Comparative Analysis Report

WallStSmart Research

Bull Case : MO

The strongest argument for MO centers on Profit Margin, Operating Margin, EPS Growth. Profitability is solid with margins at 39.5% and operating margin at 62.3%.

Bull Case : PM

The strongest argument for PM centers on Market Cap, Operating Margin, Profit Margin. Profitability is solid with margins at 26.7% and operating margin at 36.0%.

Bear Case : MO

The primary concerns for MO are PEG Ratio, Return on Equity.

Bear Case : PM

The primary concerns for PM are PEG Ratio, Return on Equity, EPS Growth.

Key Dynamics to Monitor

MO carries more volatility with a beta of 0.45 — expect wider price swings.

PM is growing revenue faster at 9.1% — sustainability is the question.

MO generates stronger free cash flow (2.2B), providing more financial flexibility.

Monitor TOBACCO industry trends, competitive dynamics, and regulatory changes.

Bottom Line

MO scores higher overall (61/100 vs 54/100), backed by strong 39.5% margins. 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.

Altria Group

CONSUMER DEFENSIVE · TOBACCO · USA

Altria Group, Inc. (previously known as Philip Morris Companies, Inc.) is an American corporation and one of the world's largest producers and marketers of tobacco, cigarettes and related products. It operates worldwide and is headquartered in unincorporated Henrico County, Virginia, just outside the city of Richmond.

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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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