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 ($25.78B vs $20.44B). MO leads profitability with a 39.0% profit margin vs 25.0%. BTI appears more attractively valued with a PEG of 1.35. BTI earns a higher WallStSmart Score of 60/100 (C).

BTI

Buy

60

out of 100

Grade: C

Growth: 2.7Profit: 8.5Value: 7.3Quality: 5.0
Piotroski: 7/9Altman Z: 1.33

MO

Hold

47

out of 100

Grade: D+

Growth: 2.7Profit: 8.5Value: 4.0Quality: 6.5
Piotroski: 4/9Altman Z: 2.86
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

BTIUndervalued (+27.2%)

Margin of Safety

+27.2%

Fair Value

$75.86

Current Price

$55.83

$20.03 discount

UndervaluedFair: $75.86Overvalued
MOSignificantly Overvalued (-51.2%)

Margin of Safety

-51.2%

Fair Value

$46.11

Current Price

$69.70

$23.59 premium

UndervaluedFair: $46.11Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

BTI5 strengths · Avg: 8.8/10
Operating MarginProfitability
34.9%10/10

Strong operational efficiency at 34.9%

Market CapQuality
$118.95B9/10

Large-cap with strong market position

Profit MarginProfitability
25.0%9/10

Keeps 25 of every $100 in revenue as profit

P/E RatioValuation
13.9x8/10

Attractively priced relative to earnings

Free Cash FlowQuality
$2.47B8/10

Generating 2.5B in free cash flow

MO5 strengths · Avg: 9.4/10
Profit MarginProfitability
39.0%10/10

Keeps 39 of every $100 in revenue as profit

Operating MarginProfitability
76.1%10/10

Strong operational efficiency at 76.1%

Debt/EquityHealth
-9.2110/10

Conservative balance sheet, low leverage

Market CapQuality
$115.18B9/10

Large-cap with strong market position

P/E RatioValuation
14.5x8/10

Attractively priced relative to earnings

Areas to Watch

BTI4 concerns · Avg: 3.0/10
Price/BookValuation
9.6x4/10

Trading at 9.6x book value

Revenue GrowthGrowth
1.4%4/10

1.4% revenue growth

EPS GrowthGrowth
-28.6%2/10

Earnings declined 28.6%

Altman Z-ScoreHealth
1.332/10

Distress zone — elevated risk

MO4 concerns · Avg: 2.8/10
Revenue GrowthGrowth
1.2%4/10

1.2% revenue growth

Return on EquityProfitability
0.0%3/10

ROE of 0.0% — below average capital efficiency

PEG RatioValuation
2.602/10

Expensive relative to growth rate

EPS GrowthGrowth
-2.7%2/10

Earnings declined 2.7%

Comparative Analysis Report

WallStSmart Research

Bull 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%. PEG of 1.35 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 39.0% and operating margin at 76.1%.

Bear Case : BTI

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

Bear Case : MO

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

Key Dynamics to Monitor

MO carries more volatility with a beta of 0.49 — expect wider price swings.

BTI is growing revenue faster at 1.4% — sustainability is the question.

BTI 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 (60/100 vs 47/100), backed by strong 25.0% 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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