WallStSmart

British American Tobacco p.l.c. (BTI)vsAltria Group (MO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

British American Tobacco p.l.c. generates 26% more annual revenue ($25.61B vs $20.38B). MO leads profitability with a 39.5% profit margin vs 30.3%. BTI appears more attractively valued with a PEG of 1.57. MO earns a higher WallStSmart Score of 61/100 (C+).

BTI

Buy

59

out of 100

Grade: C

Growth: 3.3Profit: 8.5Value: 6.7Quality: 5.0
Piotroski: 7/9Altman Z: 1.33

MO

Buy

61

out of 100

Grade: C+

Growth: 6.0Profit: 8.5Value: 4.7Quality: 6.5
Piotroski: 4/9Altman Z: 2.86
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

BTIUndervalued (+19.2%)

Margin of Safety

+19.2%

Fair Value

$75.94

Current Price

$57.84

$18.10 discount

UndervaluedFair: $75.94Overvalued
MOSignificantly Overvalued (-54.6%)

Margin of Safety

-54.6%

Fair Value

$45.41

Current Price

$70.60

$25.19 premium

UndervaluedFair: $45.41Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

BTI6 strengths · Avg: 9.0/10
Profit MarginProfitability
30.3%10/10

Keeps 30 of every $100 in revenue as profit

Operating MarginProfitability
34.6%10/10

Strong operational efficiency at 34.6%

Market CapQuality
$131.94B9/10

Large-cap with strong market position

Return on EquityProfitability
22.6%9/10

Every $100 of equity generates 23 in profit

P/E RatioValuation
13.1x8/10

Attractively priced relative to earnings

Free Cash FlowQuality
$2.98B8/10

Generating 3.0B in free cash flow

MO6 strengths · Avg: 9.5/10
Profit MarginProfitability
39.5%10/10

Keeps 40 of every $100 in revenue as profit

Operating MarginProfitability
62.3%10/10

Strong operational efficiency at 62.3%

EPS GrowthGrowth
106.3%10/10

Earnings expanding 106.3% YoY

Debt/EquityHealth
-7.6610/10

Conservative balance sheet, low leverage

Market CapQuality
$116.21B9/10

Large-cap with strong market position

P/E RatioValuation
14.5x8/10

Attractively priced relative to earnings

Areas to Watch

BTI4 concerns · Avg: 4.0/10
PEG RatioValuation
1.574/10

Expensive relative to growth rate

Price/BookValuation
10.2x4/10

Trading at 10.2x book value

Revenue GrowthGrowth
0.1%4/10

0.1% revenue growth

EPS GrowthGrowth
1.6%4/10

1.6% earnings growth

MO2 concerns · Avg: 3.5/10
PEG RatioValuation
1.654/10

Expensive relative to growth rate

Return on EquityProfitability
0.0%3/10

ROE of 0.0% — below average capital efficiency

Comparative Analysis Report

WallStSmart Research

Bull Case : BTI

The strongest argument for BTI centers on Profit Margin, Operating Margin, Market Cap. Profitability is solid with margins at 30.3% and operating margin at 34.6%.

Bull Case : MO

The strongest argument for MO centers on Profit Margin, Operating Margin, EPS Growth. Profitability is solid with margins at 39.5% and operating margin at 62.3%.

Bear Case : BTI

The primary concerns for BTI are PEG Ratio, Price/Book, Revenue Growth.

Bear Case : MO

The primary concerns for MO are PEG Ratio, Return on Equity.

Key Dynamics to Monitor

BTI profiles as a value stock while MO is a mature play — different risk/reward profiles.

MO carries more volatility with a beta of 0.50 — expect wider price swings.

MO is growing revenue faster at 5.3% — sustainability is the question.

BTI generates stronger free cash flow (3.0B), providing more financial flexibility.

Bottom Line

MO scores higher overall (61/100 vs 59/100), backed by strong 39.5% margins. BTI offers better value entry with a 19.2% margin of safety. 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.

Altria Group

CONSUMER DEFENSIVE · TOBACCO · USA

Altria Group, Inc. (previously known as Philip Morris Companies, Inc.) is an American corporation and one of the world's largest producers and marketers of tobacco, cigarettes and related products. It operates worldwide and is headquartered in unincorporated Henrico County, Virginia, just outside the city of Richmond.

Visit Website →

Want to dig deeper into these stocks?