Philip Morris International Inc (PM)vsSAP SE ADR (SAP)
PM
Philip Morris International Inc
$165.50
+0.99%
CONSUMER DEFENSIVE · Cap: $255.09B
SAP
SAP SE ADR
$168.95
-1.20%
TECHNOLOGY · Cap: $217.55B
Smart Verdict
WallStSmart Research — data-driven comparison
Philip Morris International Inc generates 10% more annual revenue ($40.65B vs $36.80B). PM leads profitability with a 27.9% profit margin vs 19.5%. SAP appears more attractively valued with a PEG of 0.79. PM earns a higher WallStSmart Score of 70/100 (B-).
PM
Strong Buy70
out of 100
Grade: B-
SAP
Buy58
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+17.9%
Fair Value
$201.54
Current Price
$165.50
$36.04 discount
Margin of Safety
-88.8%
Fair Value
$104.04
Current Price
$168.95
$64.91 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Strong operational efficiency at 32.9%
Keeps 28 of every $100 in revenue as profit
Generating 4.3B in free cash flow
Mega-cap, among the largest globally
Safe zone — low bankruptcy risk
Conservative balance sheet, low leverage
Growing faster than its price suggests
Strong operational efficiency at 29.2%
Generating 1.1B in free cash flow
Areas to Watch
Expensive relative to growth rate
ROE of 0.0% — below average capital efficiency
Moderate valuation
3.3% revenue growth
Comparative Analysis Report
WallStSmart ResearchBull 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%.
Bull Case : SAP
The strongest argument for SAP centers on Market Cap, Altman Z-Score, Debt/Equity. Profitability is solid with margins at 19.5% and operating margin at 29.2%. PEG of 0.79 suggests the stock is reasonably priced for its growth.
Bear Case : PM
The primary concerns for PM are PEG Ratio, Return on Equity.
Bear Case : SAP
The primary concerns for SAP are P/E Ratio, Revenue Growth.
Key Dynamics to Monitor
PM profiles as a mature stock while SAP is a value play — different risk/reward profiles.
SAP carries more volatility with a beta of 0.69 — expect wider price swings.
PM is growing revenue faster at 6.8% — 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 58/100), backed by strong 27.9% 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.
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.
SAP SE ADR
TECHNOLOGY · SOFTWARE - APPLICATION · USA
SAP SE is a global enterprise application software company. The company is headquartered in Walldorf, Germany.
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