WallStSmart

Petroleo Brasileiro Petrobras SA ADR (PBR)vsPhilip Morris International Inc (PM)

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Smart Verdict

WallStSmart Research — data-driven comparison

Petroleo Brasileiro Petrobras SA ADR generates 1099% more annual revenue ($497.55B vs $41.49B). PM leads profitability with a 26.7% profit margin vs 22.1%. PM appears more attractively valued with a PEG of 1.93. PBR earns a higher WallStSmart Score of 68/100 (B-).

PBR

Strong Buy

68

out of 100

Grade: B-

Growth: 4.0Profit: 9.0Value: 5.7Quality: 4.5
Piotroski: 5/9Altman Z: 1.35

PM

Buy

54

out of 100

Grade: C-

Growth: 4.7Profit: 8.5Value: 4.0Quality: 5.3
Piotroski: 5/9Altman Z: 2.18
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for PBR.

PMSignificantly Overvalued (-48.0%)

Margin of Safety

-48.0%

Fair Value

$115.64

Current Price

$170.99

$55.35 premium

UndervaluedFair: $115.64Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

PBR6 strengths · Avg: 8.8/10
P/E RatioValuation
6.9x10/10

Attractively priced relative to earnings

Market CapQuality
$134.75B9/10

Large-cap with strong market position

Return on EquityProfitability
28.2%9/10

Every $100 of equity generates 28 in profit

Profit MarginProfitability
22.1%9/10

Keeps 22 of every $100 in revenue as profit

Price/BookValuation
1.6x8/10

Reasonable price relative to book value

Operating MarginProfitability
26.9%8/10

Strong operational efficiency at 26.9%

PM3 strengths · Avg: 9.7/10
Market CapQuality
$266.69B10/10

Mega-cap, among the largest globally

Operating MarginProfitability
36.0%10/10

Strong operational efficiency at 36.0%

Profit MarginProfitability
26.7%9/10

Keeps 27 of every $100 in revenue as profit

Areas to Watch

PBR3 concerns · Avg: 2.7/10
EPS GrowthGrowth
0.5%4/10

0.5% earnings growth

PEG RatioValuation
5.512/10

Expensive relative to growth rate

Altman Z-ScoreHealth
1.352/10

Distress zone — elevated risk

PM4 concerns · Avg: 2.8/10
PEG RatioValuation
1.934/10

Expensive relative to growth rate

Return on EquityProfitability
0.0%3/10

ROE of 0.0% — below average capital efficiency

EPS GrowthGrowth
-9.3%2/10

Earnings declined 9.3%

Free Cash FlowQuality
$-752.00M2/10

Negative free cash flow — burning cash

Comparative Analysis Report

WallStSmart Research

Bull Case : PBR

The strongest argument for PBR centers on P/E Ratio, Market Cap, Return on Equity. Profitability is solid with margins at 22.1% and operating margin at 26.9%.

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 : PBR

The primary concerns for PBR are EPS Growth, PEG Ratio, Altman Z-Score.

Bear Case : PM

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

Key Dynamics to Monitor

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

PM carries more volatility with a beta of 0.39 — expect wider price swings.

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

PBR generates stronger free cash flow (3.2B), providing more financial flexibility.

Bottom Line

PBR scores higher overall (68/100 vs 54/100), backed by strong 22.1% margins. Both earn "Strong 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.

Petroleo Brasileiro Petrobras SA ADR

ENERGY · OIL & GAS INTEGRATED · USA

Petrleo Brasileiro SA - Petrobras produces and sells oil and gas in Brazil and internationally. The company is headquartered in Rio de Janeiro, Brazil.

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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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