Philip Morris International Inc (PM)vsSAP SE ADR (SAP)
PM
Philip Morris International Inc
$170.99
-0.07%
CONSUMER DEFENSIVE · Cap: $266.69B
SAP
SAP SE ADR
$173.70
-0.58%
TECHNOLOGY · Cap: $204.11B
Smart Verdict
WallStSmart Research — data-driven comparison
Philip Morris International Inc generates 11% more annual revenue ($41.49B vs $37.34B). PM leads profitability with a 26.7% profit margin vs 19.6%. SAP appears more attractively valued with a PEG of 0.73. SAP earns a higher WallStSmart Score of 62/100 (C+).
PM
Buy54
out of 100
Grade: C-
SAP
Buy62
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-48.0%
Fair Value
$115.64
Current Price
$170.99
$55.35 premium
Margin of Safety
-16.9%
Fair Value
$168.01
Current Price
$173.70
$5.69 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Strong operational efficiency at 36.0%
Keeps 27 of every $100 in revenue as profit
Mega-cap, among the largest globally
Strong operational efficiency at 30.0%
Safe zone — low bankruptcy risk
Conservative balance sheet, low leverage
Growing faster than its price suggests
Generating 3.3B in free cash flow
Areas to Watch
Expensive relative to growth rate
ROE of 0.0% — below average capital efficiency
Earnings declined 9.3%
Negative free cash flow — burning cash
No major concerns identified
Comparative Analysis Report
WallStSmart ResearchBull 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%.
Bull Case : SAP
The strongest argument for SAP centers on Market Cap, Operating Margin, Altman Z-Score. Profitability is solid with margins at 19.6% and operating margin at 30.0%. PEG of 0.73 suggests the stock is reasonably priced for its growth.
Bear Case : PM
The primary concerns for PM are PEG Ratio, Return on Equity, EPS Growth.
Bear Case : SAP
No major red flags identified for SAP, but monitor valuation.
Key Dynamics to Monitor
SAP carries more volatility with a beta of 0.71 — expect wider price swings.
PM is growing revenue faster at 9.1% — sustainability is the question.
SAP generates stronger free cash flow (3.3B), providing more financial flexibility.
Monitor TOBACCO industry trends, competitive dynamics, and regulatory changes.
Bottom Line
SAP scores higher overall (62/100 vs 54/100), backed by strong 19.6% 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.
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.
SAP SE ADR
TECHNOLOGY · SOFTWARE - APPLICATION · USA
SAP SE is a global enterprise application software company. The company is headquartered in Walldorf, Germany.
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