WallStSmart

British American Tobacco p.l.c. (BTI)vsPetróleo Brasileiro S.A. - Petrobras (PBR-A)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Petróleo Brasileiro S.A. - Petrobras generates 1843% more annual revenue ($497.55B vs $25.61B). BTI leads profitability with a 30.3% profit margin vs 22.1%. PBR-A appears more attractively valued with a PEG of 0.30. PBR-A earns a higher WallStSmart Score of 75/100 (B).

BTI

Buy

64

out of 100

Grade: C+

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

PBR-A

Strong Buy

75

out of 100

Grade: B

Growth: 4.0Profit: 9.0Value: 10.0Quality: 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
PBR-AUndervalued (+37.8%)

Margin of Safety

+37.8%

Fair Value

$23.71

Current Price

$18.13

$5.58 discount

UndervaluedFair: $23.71Overvalued

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

PBR-A6 strengths · Avg: 9.2/10
PEG RatioValuation
0.3010/10

Growing faster than its price suggests

P/E RatioValuation
5.6x10/10

Attractively priced relative to earnings

Market CapQuality
$114.52B9/10

Large-cap with strong market position

Return on EquityProfitability
28.2%9/10

Every $100 of equity generates 28 in profit

Profit MarginProfitability
22.1%9/10

Keeps 22 of every $100 in revenue as profit

Price/BookValuation
3.0x8/10

Reasonable price relative to book value

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

PBR-A2 concerns · Avg: 3.0/10
EPS GrowthGrowth
0.5%4/10

0.5% earnings growth

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-A

The strongest argument for PBR-A centers on PEG Ratio, P/E Ratio, Market Cap. Profitability is solid with margins at 22.1% and operating margin at 26.9%. PEG of 0.30 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-A

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

Key Dynamics to Monitor

PBR-A carries more volatility with a beta of 0.16 — expect wider price swings.

PBR-A is growing revenue faster at 5.0% — sustainability is the question.

PBR-A generates stronger free cash flow (3.2B), providing more financial flexibility.

Monitor TOBACCO industry trends, competitive dynamics, and regulatory changes.

Bottom Line

PBR-A scores higher overall (75/100 vs 64/100), backed by strong 22.1% 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.

Petróleo Brasileiro S.A. - Petrobras

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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