Comcast Corporation (CMCSA) vs Philip Morris International Inc. (PM): Which Is the Better Buy in 2026?
As of 2026-06-19, CMCSA is undervalued at $22, with a DCF intrinsic value of $107 and a margin of safety of 79%. PM is overvalued at $178, with an intrinsic value of $139 and a margin of safety of -28%. Of the two, CMCSA has the wider margin of safety.
Rewards
- ★Gross margin of 70.1% indicates strong pricing power — typical of businesses with significant intellectual property or brand strength.
- ★Free cash flow has grown at a 15.0% CAGR over the past 4 years, demonstrating strong earnings power growth.
- ★Share count has been reduced by 15% over the past 4 years through buybacks, increasing each share's claim on earnings.
- ★Philip Morris International Inc. has maintained ROIC above 15% for 4 consecutive years, indicating a durable competitive advantage.
- ★Gross margin of 67.3% indicates strong pricing power — typical of businesses with significant intellectual property or brand strength.
- ★Philip Morris International Inc. scores 100/100 on the Economic Moat Score (Wide Moat), with roic consistency as the strongest competitive dimension.
Risks
- ⚠PEG ratio of 142.98 indicates the stock is expensive relative to its expected growth — the market may be pricing in more growth than analysts project.
- ⚠Altman Z-Score of 1.37 places the company in the distress zone — financial patterns resemble those of companies that experienced bankruptcy.
- ⚠PEG ratio of 2.57 indicates the stock is expensive relative to its expected growth — the market may be pricing in more growth than analysts project.
Key Valuation Metrics
Learn more →Historical Fundamentals
Learn more →Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS.
Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS.
Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS.
$1 Retained Earnings Test
Learn more →> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer
Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer
Discounted Cash Flow (DCF) Analysis
Learn more →Reverse DCF — Market-Implied Growth
Learn more →What growth rate is the market pricing in at $22?
The market implies -5.8% Owner Earnings growth, below historical trends — potential opportunity.
Standard FCF implies a more demanding -4.0%, reflecting heavy growth investment expected to generate future returns.
What growth rate is the market pricing in at $178?
The market implies +12.1% Owner Earnings growth, above historical trends.
Standard FCF implies a demanding +16.4%, reflecting heavy growth investment.
Economic Moat Score
Learn more →Narrow moat with margin stability as the key competitive advantage. Improving roic consistency would strengthen the moat.
Wide moat with strength across all dimensions. ROIC Consistency is the standout factor.
Forensic Accounting
Learn more →M-Score Trend
M-Score Trend
Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.
Ownership Breakdown
Learn more →High insider ownership aligns management incentives with shareholders. Institutional concentration can indicate smart-money conviction but also crowding risk.
Insider Buying Activity
Learn more →Open market purchases · includes direct & indirect ownership · excludes option exercises.
Insider Selling Activity
Learn more →Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives.
🎭 Mr. Market's Mood
Learn more →"Market is pessimistic — investigate whether fears are temporary or structural"
"Market is pricing this stock without strong emotion in either direction"
Composite sentiment score based on market signals. Inspired by Buffett’s "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.
⚖️ Buffett Signal
Learn more →The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.
The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.
Frequently Asked Questions: CMCSA vs PM
Is Comcast Corporation or Philip Morris International Inc. more undervalued in 2026?▼
Based on our discounted cash flow model, CMCSA trades at a 79.0% margin of safety (intrinsic value $107 vs. price $22), compared to PM's -28.1% margin of safety (intrinsic $139 vs. $178).
Which stock has a wider economic moat, Comcast Corporation or Philip Morris International Inc.?▼
PM scores 100/100 (Wide moat), while CMCSA scores 67/100 (Narrow moat). The moat score measures competitive advantage durability across ROIC consistency, margin stability, revenue predictability, and reinvestment efficiency.
Is Comcast Corporation in financial distress?▼
CMCSA's Altman Z-Score of 1.4 places it in the Distress zone, signaling elevated bankruptcy risk. PM scores 3.9 (Safe zone). The Altman Z-Score is a five-factor model that predicts insolvency within two years; scores below 1.81 indicate significant distress.
Which company has better free cash flow, Comcast Corporation or Philip Morris International Inc.?▼
Comcast Corporation (CMCSA) generates a 24.0% free cash flow yield, compared to Philip Morris International Inc.'s 3.1%. A higher FCF yield means the business converts more of its market value into cash that can be returned to shareholders or reinvested.
Which stock has higher return on invested capital, Comcast Corporation or Philip Morris International Inc.?▼
PM earns 22.7% ROIC versus CMCSA's 7.1%. A higher ROIC means the company generates more profit per dollar of capital employed, a hallmark of durable competitive advantage in Buffett-style analysis.
Which dividend is safer, Comcast Corporation's or Philip Morris International Inc.'s?▼
CMCSA's dividend earns a safety score of 94/100 (Very Safe), compared to PM's 34/100 (Unsafe). CMCSA has raised its dividend for 3 consecutive years.