WallStSmart

Philip Morris International Inc (PM)vsVerizon Communications Inc (VZ)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Verizon Communications Inc generates 235% more annual revenue ($139.15B vs $41.49B). PM leads profitability with a 26.7% profit margin vs 12.5%. VZ appears more attractively valued with a PEG of 0.89. VZ earns a higher WallStSmart Score of 68/100 (B-).

PM

Buy

54

out of 100

Grade: C-

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

VZ

Strong Buy

68

out of 100

Grade: B-

Growth: 4.0Profit: 7.5Value: 7.3Quality: 3.8
Piotroski: 2/9Altman Z: 1.11
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

PMSignificantly Overvalued (-48.0%)

Margin of Safety

-48.0%

Fair Value

$115.64

Current Price

$170.99

$55.35 premium

UndervaluedFair: $115.64Overvalued
VZFair Value (-4.4%)

Margin of Safety

-4.4%

Fair Value

$45.11

Current Price

$47.22

$2.11 premium

UndervaluedFair: $45.11Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

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

VZ6 strengths · Avg: 8.5/10
P/E RatioValuation
11.5x10/10

Attractively priced relative to earnings

Market CapQuality
$196.65B9/10

Large-cap with strong market position

PEG RatioValuation
0.898/10

Growing faster than its price suggests

Price/BookValuation
1.9x8/10

Reasonable price relative to book value

Operating MarginProfitability
25.2%8/10

Strong operational efficiency at 25.2%

Free Cash FlowQuality
$3.78B8/10

Generating 3.8B in free cash flow

Areas to Watch

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

VZ4 concerns · Avg: 3.3/10
Revenue GrowthGrowth
2.9%4/10

2.9% revenue growth

EPS GrowthGrowth
4.3%4/10

4.3% earnings growth

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Altman Z-ScoreHealth
1.112/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

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%.

Bull Case : VZ

The strongest argument for VZ centers on P/E Ratio, Market Cap, PEG Ratio. PEG of 0.89 suggests the stock is reasonably priced for its growth.

Bear Case : PM

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

Bear Case : VZ

The primary concerns for VZ are Revenue Growth, EPS Growth, Piotroski F-Score.

Key Dynamics to Monitor

PM profiles as a mature stock while VZ is a value 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.

VZ generates stronger free cash flow (3.8B), providing more financial flexibility.

Bottom Line

VZ scores higher overall (68/100 vs 54/100). 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.

Verizon Communications Inc

COMMUNICATION SERVICES · TELECOM SERVICES · USA

Verizon Communications Inc. is an American multinational telecommunications conglomerate and a corporate component of the Dow Jones Industrial Average. The company is headquartered at 1095 Avenue of the Americas in Midtown Manhattan, New York City, but is incorporated in Delaware.

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