Philip Morris International Inc (PM)vsUnion Pacific Corporation (UNP)
PM
Philip Morris International Inc
$170.99
-0.07%
CONSUMER DEFENSIVE · Cap: $266.69B
UNP
Union Pacific Corporation
$264.65
-0.09%
INDUSTRIALS · Cap: $157.27B
Smart Verdict
WallStSmart Research — data-driven comparison
Philip Morris International Inc generates 68% more annual revenue ($41.49B vs $24.70B). UNP leads profitability with a 29.2% profit margin vs 26.7%. PM appears more attractively valued with a PEG of 1.93. UNP earns a higher WallStSmart Score of 60/100 (C).
PM
Buy54
out of 100
Grade: C-
UNP
Buy60
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-48.0%
Fair Value
$115.64
Current Price
$170.99
$55.35 premium
Margin of Safety
-76.6%
Fair Value
$150.01
Current Price
$264.65
$114.64 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Strong operational efficiency at 36.0%
Keeps 27 of every $100 in revenue as profit
Every $100 of equity generates 41 in profit
Strong operational efficiency at 40.4%
Large-cap with strong market position
Keeps 29 of every $100 in revenue as profit
Generating 1.5B in free cash flow
Areas to Watch
Expensive relative to growth rate
ROE of 0.0% — below average capital efficiency
Earnings declined 9.3%
Negative free cash flow — burning cash
Trading at 8.5x book value
3.2% revenue growth
Expensive relative to growth rate
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 26.7% and operating margin at 36.0%.
Bull Case : UNP
The strongest argument for UNP centers on Return on Equity, Operating Margin, Market Cap. Profitability is solid with margins at 29.2% and operating margin at 40.4%.
Bear Case : PM
The primary concerns for PM are PEG Ratio, Return on Equity, EPS Growth.
Bear Case : UNP
The primary concerns for UNP are Price/Book, Revenue Growth, PEG Ratio.
Key Dynamics to Monitor
PM profiles as a mature stock while UNP is a value play — different risk/reward profiles.
UNP carries more volatility with a beta of 0.99 — expect wider price swings.
PM is growing revenue faster at 9.1% — sustainability is the question.
UNP generates stronger free cash flow (1.5B), providing more financial flexibility.
Bottom Line
UNP scores higher overall (60/100 vs 54/100), backed by strong 29.2% margins. 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.
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.
Union Pacific Corporation
INDUSTRIALS · RAILROADS · USA
The Union Pacific Corporation (Union Pacific) is a publicly traded railroad holding company. It was incorporated in Utah in 1969 and is headquartered in Omaha, Nebraska. It is the parent company of the current, Delaware-registered, form of the Union Pacific Railroad.
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