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 27% more annual revenue ($25.61B vs $20.14B). MO leads profitability with a 34.5% profit margin vs 30.3%. BTI appears more attractively valued with a PEG of 0.44. BTI earns a higher WallStSmart Score of 62/100 (C+).

BTI

Buy

62

out of 100

Grade: C+

Growth: 4.0Profit: 8.5Value: 7.3Quality: 5.0

MO

Hold

47

out of 100

Grade: D+

Growth: 2.0Profit: 8.5Value: 7.3Quality: 6.5
Piotroski: 4/9Altman Z: 2.86
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

BTISignificantly Overvalued (-39.2%)

Margin of Safety

-39.2%

Fair Value

$43.34

Current Price

$58.72

$15.38 premium

UndervaluedFair: $43.34Overvalued
MOSignificantly Overvalued (-135.3%)

Margin of Safety

-135.3%

Fair Value

$28.02

Current Price

$64.47

$36.45 premium

UndervaluedFair: $28.02Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

BTI6 strengths · Avg: 9.2/10
PEG RatioValuation
0.4410/10

Growing faster than its price suggests

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
$131.26B9/10

Large-cap with strong market position

P/E RatioValuation
13.1x8/10

Attractively priced relative to earnings

Price/BookValuation
2.1x8/10

Reasonable price relative to book value

MO6 strengths · Avg: 9.2/10
Profit MarginProfitability
34.5%10/10

Keeps 35 of every $100 in revenue as profit

Operating MarginProfitability
57.1%10/10

Strong operational efficiency at 57.1%

Debt/EquityHealth
-7.3410/10

Conservative balance sheet, low leverage

Market CapQuality
$113.36B9/10

Large-cap with strong market position

P/E RatioValuation
16.4x8/10

Attractively priced relative to earnings

Free Cash FlowQuality
$3.18B8/10

Generating 3.2B in free cash flow

Areas to Watch

BTI1 concerns · Avg: 4.0/10
EPS GrowthGrowth
1.6%4/10

1.6% earnings growth

MO4 concerns · Avg: 2.8/10
PEG RatioValuation
1.734/10

Expensive relative to growth rate

Return on EquityProfitability
0.0%3/10

ROE of 0.0% — below average capital efficiency

Revenue GrowthGrowth
-50.0%2/10

Revenue declined 50.0%

EPS GrowthGrowth
-62.9%2/10

Earnings declined 62.9%

Comparative Analysis Report

WallStSmart Research

Bull Case : BTI

The strongest argument for BTI centers on PEG Ratio, Profit Margin, Operating Margin. Profitability is solid with margins at 30.3% and operating margin at 34.6%. PEG of 0.44 suggests the stock is reasonably priced for its growth.

Bull Case : MO

The strongest argument for MO centers on Profit Margin, Operating Margin, Debt/Equity. Profitability is solid with margins at 34.5% and operating margin at 57.1%.

Bear Case : BTI

The primary concerns for BTI are EPS Growth.

Bear Case : MO

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

Key Dynamics to Monitor

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

MO carries more volatility with a beta of 0.43 — expect wider price swings.

BTI is growing revenue faster at 10.0% — sustainability is the question.

MO generates stronger free cash flow (3.2B), providing more financial flexibility.

Bottom Line

BTI scores higher overall (62/100 vs 47/100), backed by strong 30.3% margins. Both earn "Buy" and "Hold" 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.

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