WallStSmart

Cloudflare Inc (NET)vsPhilip Morris International Inc (PM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Philip Morris International Inc generates 1814% more annual revenue ($41.49B vs $2.17B). PM leads profitability with a 26.7% profit margin vs -4.7%. PM appears more attractively valued with a PEG of 1.88. PM earns a higher WallStSmart Score of 54/100 (C-).

NET

Hold

35

out of 100

Grade: F

Growth: 8.0Profit: 2.0Value: 4.3Quality: 5.0

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

NETOvervalued (-14.2%)

Margin of Safety

-14.2%

Fair Value

$165.80

Current Price

$204.97

$39.17 premium

UndervaluedFair: $165.80Overvalued
PMSignificantly Overvalued (-41.1%)

Margin of Safety

-41.1%

Fair Value

$115.38

Current Price

$162.71

$47.33 premium

UndervaluedFair: $115.38Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

NET2 strengths · Avg: 9.5/10
Revenue GrowthGrowth
33.6%10/10

Revenue surging 33.6% year-over-year

Market CapQuality
$72.88B9/10

Large-cap with strong market position

PM3 strengths · Avg: 9.7/10
Market CapQuality
$255.91B10/10

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

NET4 concerns · Avg: 3.0/10
PEG RatioValuation
2.384/10

Expensive relative to growth rate

EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Price/BookValuation
49.4x2/10

Trading at 49.4x book value

Return on EquityProfitability
-8.2%2/10

ROE of -8.2% — below average capital efficiency

PM4 concerns · Avg: 2.8/10
PEG RatioValuation
1.884/10

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 : NET

The strongest argument for NET centers on Revenue Growth, Market Cap. Revenue growth of 33.6% demonstrates continued momentum.

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 : NET

The primary concerns for NET are PEG Ratio, EPS Growth, Price/Book.

Bear Case : PM

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

Key Dynamics to Monitor

NET profiles as a hypergrowth stock while PM is a mature play — different risk/reward profiles.

NET carries more volatility with a beta of 1.88 — expect wider price swings.

NET is growing revenue faster at 33.6% — sustainability is the question.

NET generates stronger free cash flow (156M), providing more financial flexibility.

Bottom Line

PM scores higher overall (54/100 vs 35/100), backed by strong 26.7% margins. Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Cloudflare Inc

TECHNOLOGY · SOFTWARE - INFRASTRUCTURE · USA

CloudFlare, Inc. operates a cloud platform that offers a range of network services to companies around the world. The company is headquartered in San Francisco, California.

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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