WallStSmart

Philip Morris International Inc (PM)vsRoyal Caribbean Cruises Ltd (RCL)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Philip Morris International Inc generates 127% more annual revenue ($40.65B vs $17.93B). PM leads profitability with a 27.9% profit margin vs 23.8%. RCL appears more attractively valued with a PEG of 1.09. RCL earns a higher WallStSmart Score of 74/100 (B).

PM

Strong Buy

70

out of 100

Grade: B-

Growth: 6.0Profit: 8.5Value: 9.3Quality: 5.3
Piotroski: 5/9Altman Z: 2.18

RCL

Strong Buy

74

out of 100

Grade: B

Growth: 8.7Profit: 8.0Value: 10.0Quality: 3.8
Piotroski: 5/9Altman Z: 0.96
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

PMUndervalued (+17.9%)

Margin of Safety

+17.9%

Fair Value

$201.54

Current Price

$165.50

$36.04 discount

UndervaluedFair: $201.54Overvalued
RCLUndervalued (+54.3%)

Margin of Safety

+54.3%

Fair Value

$730.08

Current Price

$279.01

$451.07 discount

UndervaluedFair: $730.08Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

PM4 strengths · Avg: 9.3/10
Market CapQuality
$255.09B10/10

Mega-cap, among the largest globally

Operating MarginProfitability
32.9%10/10

Strong operational efficiency at 32.9%

Profit MarginProfitability
27.9%9/10

Keeps 28 of every $100 in revenue as profit

Free Cash FlowQuality
$4.26B8/10

Generating 4.3B in free cash flow

RCL6 strengths · Avg: 8.7/10
Return on EquityProfitability
47.7%10/10

Every $100 of equity generates 48 in profit

Market CapQuality
$76.09B9/10

Large-cap with strong market position

Profit MarginProfitability
23.8%9/10

Keeps 24 of every $100 in revenue as profit

P/E RatioValuation
17.9x8/10

Attractively priced relative to earnings

Operating MarginProfitability
22.0%8/10

Strong operational efficiency at 22.0%

EPS GrowthGrowth
37.1%8/10

Earnings expanding 37.1% YoY

Areas to Watch

PM2 concerns · Avg: 3.5/10
PEG RatioValuation
1.864/10

Expensive relative to growth rate

Return on EquityProfitability
0.0%3/10

ROE of 0.0% — below average capital efficiency

RCL1 concerns · Avg: 2.0/10
Altman Z-ScoreHealth
0.962/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : PM

The strongest argument for PM centers on Market Cap, Operating Margin, Profit Margin. Profitability is solid with margins at 27.9% and operating margin at 32.9%.

Bull Case : RCL

The strongest argument for RCL centers on Return on Equity, Market Cap, Profit Margin. Profitability is solid with margins at 23.8% and operating margin at 22.0%. Revenue growth of 13.3% demonstrates continued momentum.

Bear Case : PM

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

Bear Case : RCL

The primary concerns for RCL are Altman Z-Score.

Key Dynamics to Monitor

RCL carries more volatility with a beta of 1.93 — expect wider price swings.

RCL is growing revenue faster at 13.3% — sustainability is the question.

PM generates stronger free cash flow (4.3B), providing more financial flexibility.

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

Bottom Line

RCL scores higher overall (74/100 vs 70/100), backed by strong 23.8% margins and 13.3% revenue growth. PM offers better value entry with a 17.9% margin of safety. Both earn "Strong Buy" and "Strong 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.

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.

Royal Caribbean Cruises Ltd

CONSUMER CYCLICAL · TRAVEL SERVICES · USA

Royal Caribbean Group, formerly known as Royal Caribbean Cruises Ltd., is an American global cruise holding company incorporated in Liberia and based in Miami, Florida, US.

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