British American Tobacco p.l.c. (BTI)vsCostco Wholesale Corp (COST)
BTI
British American Tobacco p.l.c.
$61.52
+0.74%
CONSUMER DEFENSIVE · Cap: $132.22B
COST
Costco Wholesale Corp
$1,012.28
+1.77%
CONSUMER DEFENSIVE · Cap: $448.57B
Smart Verdict
WallStSmart Research — data-driven comparison
Costco Wholesale Corp generates 1076% more annual revenue ($303.15B vs $25.78B). BTI leads profitability with a 25.0% profit margin vs 3.0%. BTI appears more attractively valued with a PEG of 1.54. COST earns a higher WallStSmart Score of 55/100 (C-).
BTI
Buy55
out of 100
Grade: C
COST
Buy55
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+18.7%
Fair Value
$75.64
Current Price
$61.52
$14.12 discount
Intrinsic value data unavailable for COST.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Strong operational efficiency at 34.9%
Large-cap with strong market position
Keeps 25 of every $100 in revenue as profit
Attractively priced relative to earnings
Generating 2.5B in free cash flow
Mega-cap, among the largest globally
Safe zone — low bankruptcy risk
Every $100 of equity generates 26 in profit
Conservative balance sheet, low leverage
Generating 2.5B in free cash flow
Areas to Watch
Expensive relative to growth rate
Trading at 10.7x book value
1.4% revenue growth
Earnings declined 28.6%
Trading at 12.5x book value
3.0% margin — thin
Operating margin of 3.8%
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : BTI
The strongest argument for BTI centers on Operating Margin, Market Cap, Profit Margin. Profitability is solid with margins at 25.0% and operating margin at 34.9%.
Bull Case : COST
The strongest argument for COST centers on Market Cap, Altman Z-Score, Return on Equity. Revenue growth of 11.1% demonstrates continued momentum.
Bear Case : BTI
The primary concerns for BTI are PEG Ratio, Price/Book, Revenue Growth.
Bear Case : COST
The primary concerns for COST are Price/Book, Profit Margin, Operating Margin. A P/E of 48.8x leaves little room for execution misses. Thin 3.0% margins leave little buffer for downturns.
Key Dynamics to Monitor
COST carries more volatility with a beta of 0.87 — expect wider price swings.
COST is growing revenue faster at 11.1% — sustainability is the question.
COST generates stronger free cash flow (2.5B), providing more financial flexibility.
Monitor TOBACCO industry trends, competitive dynamics, and regulatory changes.
Bottom Line
BTI scores higher overall (55/100 vs 55/100), backed by strong 25.0% 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.
British American Tobacco p.l.c.
CONSUMER DEFENSIVE · TOBACCO · USA
British American Tobacco plc offers tobacco and nicotine products to consumers around the world. The company is headquartered in London, the United Kingdom.
Costco Wholesale Corp
CONSUMER DEFENSIVE · DISCOUNT STORES · USA
Costco Wholesale Corporation (doing business as Costco Wholesale and also known simply as Costco) is an American multinational corporation which operates a chain of membership-only (needing a membership to shop there) big-box retail stores. As of 2020, Costco was the fifth largest retailer in the world, and the world's largest retailer of choice and prime beef, organic foods, rotisserie chicken, and wine as of 2016.
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