WallStSmart

Alcon AG (ALC)vsPhilip Morris International Inc (PM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Philip Morris International Inc generates 291% more annual revenue ($40.65B vs $10.40B). PM leads profitability with a 27.9% profit margin vs 9.4%. ALC appears more attractively valued with a PEG of 1.70. PM earns a higher WallStSmart Score of 70/100 (B-).

ALC

Hold

49

out of 100

Grade: D+

Growth: 4.7Profit: 5.0Value: 7.3Quality: 7.3
Piotroski: 4/9

PM

Strong Buy

70

out of 100

Grade: B-

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

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ALCSignificantly Overvalued (-489.8%)

Margin of Safety

-489.8%

Fair Value

$13.46

Current Price

$75.26

$61.80 premium

UndervaluedFair: $13.46Overvalued
PMUndervalued (+17.9%)

Margin of Safety

+17.9%

Fair Value

$201.54

Current Price

$165.50

$36.04 discount

UndervaluedFair: $201.54Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ALC2 strengths · Avg: 8.5/10
Debt/EquityHealth
0.249/10

Conservative balance sheet, low leverage

Price/BookValuation
1.7x8/10

Reasonable price relative to book value

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

Areas to Watch

ALC4 concerns · Avg: 3.3/10
PEG RatioValuation
1.704/10

Expensive relative to growth rate

P/E RatioValuation
37.5x4/10

Premium valuation, high expectations priced in

Return on EquityProfitability
4.5%3/10

ROE of 4.5% — below average capital efficiency

EPS GrowthGrowth
-22.2%2/10

Earnings declined 22.2%

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

Comparative Analysis Report

WallStSmart Research

Bull Case : ALC

The strongest argument for ALC centers on Debt/Equity, Price/Book.

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%.

Bear Case : ALC

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

Bear Case : PM

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

Key Dynamics to Monitor

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

ALC carries more volatility with a beta of 0.70 — expect wider price swings.

ALC is growing revenue faster at 8.6% — sustainability is the question.

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

Bottom Line

PM scores higher overall (70/100 vs 49/100), backed by strong 27.9% margins. Both earn "Strong 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.

Alcon AG

HEALTHCARE · MEDICAL INSTRUMENTS & SUPPLIES · USA

Alcon, Inc., an eye care company, researches, develops, manufactures, distributes and sells eye care products for eye care professionals and their patients around the world. The company is headquartered in Geneva, Switzerland.

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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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