WallStSmart

Bank of Montreal (BMO)vsPhilip Morris International Inc (PM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Philip Morris International Inc generates 21% more annual revenue ($40.65B vs $33.48B). PM leads profitability with a 27.9% profit margin vs 27.1%. BMO appears more attractively valued with a PEG of 1.46. BMO earns a higher WallStSmart Score of 75/100 (B+).

BMO

Strong Buy

75

out of 100

Grade: B+

Growth: 8.0Profit: 7.5Value: 10.0Quality: 5.0

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

BMOUndervalued (+57.3%)

Margin of Safety

+57.3%

Fair Value

$336.32

Current Price

$136.39

$199.93 discount

UndervaluedFair: $336.32Overvalued
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

BMO6 strengths · Avg: 8.7/10
Operating MarginProfitability
39.9%10/10

Strong operational efficiency at 39.9%

Market CapQuality
$94.86B9/10

Large-cap with strong market position

Profit MarginProfitability
27.1%9/10

Keeps 27 of every $100 in revenue as profit

P/E RatioValuation
15.3x8/10

Attractively priced relative to earnings

Price/BookValuation
1.6x8/10

Reasonable price relative to book value

Free Cash FlowQuality
$6.95B8/10

Generating 7.0B in free cash flow

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

BMO0 concerns · Avg: 0/10

No major concerns identified

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 : BMO

The strongest argument for BMO centers on Operating Margin, Market Cap, Profit Margin. Profitability is solid with margins at 27.1% and operating margin at 39.9%. PEG of 1.46 suggests the stock is reasonably priced for its growth.

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 : BMO

No major red flags identified for BMO, but monitor valuation.

Bear Case : PM

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

Key Dynamics to Monitor

BMO carries more volatility with a beta of 1.16 — expect wider price swings.

BMO is growing revenue faster at 10.0% — sustainability is the question.

BMO generates stronger free cash flow (7.0B), providing more financial flexibility.

Monitor BANKS - DIVERSIFIED industry trends, competitive dynamics, and regulatory changes.

Bottom Line

BMO scores higher overall (75/100 vs 70/100), backed by strong 27.1% margins. 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.

Bank of Montreal

FINANCIAL SERVICES · BANKS - DIVERSIFIED · USA

Bank of Montreal offers diversified financial services primarily in North America. The company is headquartered in Montreal, Canada.

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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