WallStSmart

British American Tobacco p.l.c. (BTI)vsPetroleo Brasileiro Petrobras SA ADR (PBR)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Petroleo Brasileiro Petrobras SA ADR generates 1819% more annual revenue ($491.45B vs $25.61B). BTI leads profitability with a 30.3% profit margin vs 15.8%. PBR appears more attractively valued with a PEG of 0.33. PBR earns a higher WallStSmart Score of 69/100 (B-).

BTI

Buy

64

out of 100

Grade: C+

Growth: 3.3Profit: 8.5Value: 7.3Quality: 5.0

PBR

Strong Buy

69

out of 100

Grade: B-

Growth: 2.7Profit: 8.0Value: 8.7Quality: 5.5
Piotroski: 5/9Altman Z: 1.35
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

BTISignificantly Overvalued (-39.2%)

Margin of Safety

-39.2%

Fair Value

$43.34

Current Price

$57.76

$14.42 premium

UndervaluedFair: $43.34Overvalued
PBRUndervalued (+3.6%)

Margin of Safety

+3.6%

Fair Value

$16.42

Current Price

$19.82

$3.40 discount

UndervaluedFair: $16.42Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

BTI6 strengths · Avg: 9.2/10
PEG RatioValuation
0.4110/10

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
$125.28B9/10

Large-cap with strong market position

P/E RatioValuation
12.4x8/10

Attractively priced relative to earnings

Price/BookValuation
2.0x8/10

Reasonable price relative to book value

PBR6 strengths · Avg: 9.5/10
PEG RatioValuation
0.3310/10

Growing faster than its price suggests

P/E RatioValuation
6.0x10/10

Attractively priced relative to earnings

Price/BookValuation
0.6x10/10

Reasonable price relative to book value

Operating MarginProfitability
36.2%10/10

Strong operational efficiency at 36.2%

Market CapQuality
$84.28B9/10

Large-cap with strong market position

Free Cash FlowQuality
$2.84B8/10

Generating 2.8B in free cash flow

Areas to Watch

BTI2 concerns · Avg: 4.0/10
Revenue GrowthGrowth
0.1%4/10

0.1% revenue growth

EPS GrowthGrowth
1.6%4/10

1.6% earnings growth

PBR3 concerns · Avg: 2.7/10
EPS GrowthGrowth
0.5%4/10

0.5% earnings growth

Revenue GrowthGrowth
-1.3%2/10

Revenue declined 1.3%

Altman Z-ScoreHealth
1.352/10

Distress zone — elevated risk

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 0.41 suggests the stock is reasonably priced for its growth.

Bull Case : PBR

The strongest argument for PBR centers on PEG Ratio, P/E Ratio, Price/Book. Profitability is solid with margins at 15.8% and operating margin at 36.2%. PEG of 0.33 suggests the stock is reasonably priced for its growth.

Bear Case : BTI

The primary concerns for BTI are Revenue Growth, EPS Growth.

Bear Case : PBR

The primary concerns for PBR are EPS Growth, Revenue Growth, Altman Z-Score.

Key Dynamics to Monitor

BTI profiles as a value stock while PBR is a declining play — different risk/reward profiles.

PBR carries more volatility with a beta of 0.07 — expect wider price swings.

BTI is growing revenue faster at 0.1% — sustainability is the question.

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

Bottom Line

PBR scores higher overall (69/100 vs 64/100), backed by strong 15.8% margins. Both earn "Strong 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.

Petroleo Brasileiro Petrobras SA ADR

ENERGY · OIL & GAS INTEGRATED · USA

Petrleo Brasileiro SA - Petrobras produces and sells oil and gas in Brazil and internationally. The company is headquartered in Rio de Janeiro, Brazil.

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