British American Tobacco p.l.c. (BTI)vsNorthrop Grumman Corporation (NOC)
BTI
British American Tobacco p.l.c.
$58.28
+0.34%
CONSUMER DEFENSIVE · Cap: $125.67B
NOC
Northrop Grumman Corporation
$549.52
-0.50%
INDUSTRIALS · Cap: $78.44B
Smart Verdict
WallStSmart Research — data-driven comparison
Northrop Grumman Corporation generates 65% more annual revenue ($42.37B vs $25.61B). BTI leads profitability with a 30.3% profit margin vs 10.8%. BTI appears more attractively valued with a PEG of 1.52. NOC earns a higher WallStSmart Score of 63/100 (C+).
BTI
Buy60
out of 100
Grade: C+
NOC
Buy63
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+23.4%
Fair Value
$78.80
Current Price
$58.28
$20.52 discount
Margin of Safety
-60.9%
Fair Value
$421.87
Current Price
$549.52
$127.65 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Keeps 30 of every $100 in revenue as profit
Strong operational efficiency at 34.6%
Large-cap with strong market position
Attractively priced relative to earnings
Generating 3.0B in free cash flow
Earnings expanding 84.9% YoY
Large-cap with strong market position
Every $100 of equity generates 29 in profit
Attractively priced relative to earnings
Areas to Watch
Expensive relative to growth rate
Trading at 10.1x book value
0.1% revenue growth
1.6% earnings growth
4.4% revenue growth
Grey zone — moderate risk
Elevated debt levels
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull 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 : NOC
The strongest argument for NOC centers on EPS Growth, Market Cap, Return on Equity.
Bear Case : BTI
The primary concerns for BTI are PEG Ratio, Price/Book, Revenue Growth.
Bear Case : NOC
The primary concerns for NOC are Revenue Growth, Altman Z-Score, Debt/Equity.
Key Dynamics to Monitor
BTI carries more volatility with a beta of 0.12 — expect wider price swings.
NOC is growing revenue faster at 4.4% — sustainability is the question.
BTI generates stronger free cash flow (3.0B), providing more financial flexibility.
Monitor TOBACCO industry trends, competitive dynamics, and regulatory changes.
Bottom Line
NOC scores higher overall (63/100 vs 60/100). BTI offers better value entry with a 23.4% 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.
Northrop Grumman Corporation
INDUSTRIALS · AEROSPACE & DEFENSE · USA
Northrop Grumman Corporation (NYSE: NOC) is an American multinational aerospace and defense technology company.
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