BHP Group Limited (BHP)vsPhilip Morris International Inc (PM)
BHP
BHP Group Limited
$84.72
+2.63%
BASIC MATERIALS · Cap: $214.23B
PM
Philip Morris International Inc
$170.99
-0.07%
CONSUMER DEFENSIVE · Cap: $266.69B
Smart Verdict
WallStSmart Research — data-driven comparison
BHP Group Limited generates 30% more annual revenue ($53.99B vs $41.49B). PM leads profitability with a 26.7% profit margin vs 19.0%. PM appears more attractively valued with a PEG of 1.93. BHP earns a higher WallStSmart Score of 65/100 (C+).
BHP
Buy65
out of 100
Grade: C+
PM
Buy54
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-83.1%
Fair Value
$43.51
Current Price
$84.72
$41.21 premium
Margin of Safety
-48.0%
Fair Value
$115.64
Current Price
$170.99
$55.35 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Strong operational efficiency at 40.7%
Every $100 of equity generates 25 in profit
Earnings expanding 27.5% YoY
Generating 4.3B in free cash flow
Mega-cap, among the largest globally
Strong operational efficiency at 36.0%
Keeps 27 of every $100 in revenue as profit
Areas to Watch
Expensive relative to growth rate
Expensive relative to growth rate
ROE of 0.0% — below average capital efficiency
Earnings declined 9.3%
Negative free cash flow — burning cash
Comparative Analysis Report
WallStSmart ResearchBull Case : BHP
The strongest argument for BHP centers on Market Cap, Operating Margin, Return on Equity. Profitability is solid with margins at 19.0% and operating margin at 40.7%. Revenue growth of 10.8% 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 : BHP
The primary concerns for BHP are PEG Ratio.
Bear Case : PM
The primary concerns for PM are PEG Ratio, Return on Equity, EPS Growth.
Key Dynamics to Monitor
BHP carries more volatility with a beta of 0.80 — expect wider price swings.
BHP is growing revenue faster at 10.8% — sustainability is the question.
BHP generates stronger free cash flow (4.3B), providing more financial flexibility.
Monitor OTHER INDUSTRIAL METALS & MINING industry trends, competitive dynamics, and regulatory changes.
Bottom Line
BHP scores higher overall (65/100 vs 54/100), backed by strong 19.0% margins and 10.8% revenue growth. 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.
BHP Group Limited
BASIC MATERIALS · OTHER INDUSTRIAL METALS & MINING · USA
BHP Group engages in the natural resources business in Australia, Europe, China, Japan, India, South Korea, the rest of Asia, North America, South America and internationally. The company is headquartered in Melbourne, Australia.
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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