Philip Morris International Inc (PM)vsThe Travelers Companies Inc (TRV)
PM
Philip Morris International Inc
$165.50
+0.99%
CONSUMER DEFENSIVE · Cap: $255.09B
TRV
The Travelers Companies Inc
$290.59
-0.83%
FINANCIAL SERVICES · Cap: $65.36B
Smart Verdict
WallStSmart Research — data-driven comparison
The Travelers Companies Inc generates 20% more annual revenue ($48.83B vs $40.65B). PM leads profitability with a 27.9% profit margin vs 12.9%. PM appears more attractively valued with a PEG of 1.86. TRV earns a higher WallStSmart Score of 71/100 (B).
PM
Strong Buy70
out of 100
Grade: B-
TRV
Strong Buy71
out of 100
Grade: B
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
+75.4%
Fair Value
$1213.50
Current Price
$290.59
$922.91 discount
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
Attractively priced relative to earnings
Large-cap with strong market position
Every $100 of equity generates 21 in profit
Conservative balance sheet, low leverage
Reasonable price relative to book value
Strong operational efficiency at 25.9%
Areas to Watch
Expensive relative to growth rate
ROE of 0.0% — below average capital efficiency
Expensive relative to growth rate
3.5% revenue growth
Negative free cash flow — burning cash
Distress zone — elevated risk
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 : TRV
The strongest argument for TRV centers on P/E Ratio, Market Cap, Return on Equity.
Bear Case : PM
The primary concerns for PM are PEG Ratio, Return on Equity.
Bear Case : TRV
The primary concerns for TRV are PEG Ratio, Revenue Growth, Free Cash Flow.
Key Dynamics to Monitor
PM profiles as a mature stock while TRV is a value play — different risk/reward profiles.
TRV carries more volatility with a beta of 0.50 — expect wider price swings.
PM is growing revenue faster at 6.8% — sustainability is the question.
Monitor TOBACCO industry trends, competitive dynamics, and regulatory changes.
Bottom Line
TRV scores higher overall (71/100 vs 70/100). 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.
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.
The Travelers Companies Inc
FINANCIAL SERVICES · INSURANCE - PROPERTY & CASUALTY · USA
The Travelers Companies, Inc., commonly known as Travelers, is an American insurance company.
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