WallStSmart

Philip Morris International Inc (PM)vsTarget Corporation (TGT)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Target Corporation generates 156% more annual revenue ($106.38B vs $41.49B). PM leads profitability with a 26.7% profit margin vs 3.2%. TGT appears more attractively valued with a PEG of 2.57. TGT earns a higher WallStSmart Score of 52/100 (C-).

PM

Buy

52

out of 100

Grade: C-

Growth: 4.7Profit: 8.5Value: 3.3Quality: 6.5
Piotroski: 4/9Altman Z: 2.02

TGT

Buy

52

out of 100

Grade: C-

Growth: 3.3Profit: 5.5Value: 4.7Quality: 4.5
Piotroski: 3/9Altman Z: 2.47
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

PMSignificantly Overvalued (-79.3%)

Margin of Safety

-79.3%

Fair Value

$110.70

Current Price

$200.17

$89.47 premium

UndervaluedFair: $110.70Overvalued
TGTUndervalued (+4.0%)

Margin of Safety

+4.0%

Fair Value

$119.36

Current Price

$145.90

$26.54 discount

UndervaluedFair: $119.36Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

PM5 strengths · Avg: 9.4/10
Market CapQuality
$302.83B10/10

Mega-cap, among the largest globally

Operating MarginProfitability
36.0%10/10

Strong operational efficiency at 36.0%

Debt/EquityHealth
-5.7210/10

Conservative balance sheet, low leverage

Profit MarginProfitability
26.7%9/10

Keeps 27 of every $100 in revenue as profit

Free Cash FlowQuality
$5.11B8/10

Generating 5.1B in free cash flow

TGT2 strengths · Avg: 9.0/10
Market CapQuality
$63.40B9/10

Large-cap with strong market position

Return on EquityProfitability
21.0%9/10

Every $100 of equity generates 21 in profit

Areas to Watch

PM4 concerns · Avg: 2.8/10
P/E RatioValuation
26.5x4/10

Moderate valuation

Return on EquityProfitability
0.0%3/10

ROE of 0.0% — below average capital efficiency

PEG RatioValuation
2.622/10

Expensive relative to growth rate

EPS GrowthGrowth
-9.3%2/10

Earnings declined 9.3%

TGT4 concerns · Avg: 3.0/10
Profit MarginProfitability
3.2%3/10

3.2% margin — thin

Operating MarginProfitability
4.5%3/10

Operating margin of 4.5%

Debt/EquityHealth
1.153/10

Elevated debt levels

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull Case : PM

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

Bull Case : TGT

The strongest argument for TGT centers on Market Cap, Return on Equity.

Bear Case : PM

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

Bear Case : TGT

The primary concerns for TGT are Profit Margin, Operating Margin, Debt/Equity. Thin 3.2% margins leave little buffer for downturns.

Key Dynamics to Monitor

PM profiles as a mature stock while TGT is a value play — different risk/reward profiles.

TGT carries more volatility with a beta of 0.98 — expect wider price swings.

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

PM generates stronger free cash flow (5.1B), providing more financial flexibility.

Bottom Line

PM scores higher overall (52/100 vs 52/100), backed by strong 26.7% 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.

Target Corporation

CONSUMER DEFENSIVE · DISCOUNT STORES · USA

Target Corporation is an American retail corporation. Their retail formats include the discount store Target, the hypermarket SuperTarget, and small-format stores previously named CityTarget and TargetExpress before being consolidated under the Target branding.

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