PM vs WMT
Philip Morris International Inc Common Stock vs Walmart Inc. Common Stock. Side-by-side ACCE scores, valuation, profitability, and growth.
$PM wins this comparison, and it isn't particularly close.
Valuation is the sharpest dividing line. $WMT trades at a trailing P/E of 38.3 and a forward P/E of 36.4, while $PM sits at 26.0 trailing and 20.7 forward. Both our 6-model fair value estimates flag concern, but $WMT's implied overvaluation is more severe: the model puts fair value at $47.11, a 56.0% discount to the current $107.15 price. $PM's fair value of $115.00 implies 39.8% downside from $191.06, which is still a red flag, but less extreme.
Income and profitability also favour $PM. A 3.1% dividend yield versus $WMT's 0.9% matters in a defensive sector where income is part of the pitch. $PM's net margin of 25.6% dwarfs $WMT's 3.0%, and $PM's FCF yield of 3.6% beats $WMT's 1.8%.
Growth leans $PM's way too: revenue up 10.4% year-over-year against $WMT's 5.9%, and $PM's ACCE score of 58 comfortably clears $WMT's 40, with momentum at 77 versus 38.
$WMT's 22.3% ROE is a genuine strength, but it can't offset the valuation gap. $PM is the pick.