British American Tobacco p.l.c. (BTI)vsPepsiCo Inc (PEP)
BTI
British American Tobacco p.l.c.
$57.29
+3.70%
CONSUMER DEFENSIVE · Cap: $118.95B
PEP
PepsiCo Inc
$136.32
+0.01%
CONSUMER DEFENSIVE · Cap: $186.21B
Smart Verdict
WallStSmart Research — data-driven comparison
PepsiCo Inc generates 276% more annual revenue ($96.90B vs $25.78B). BTI leads profitability with a 25.0% profit margin vs 10.8%. BTI appears more attractively valued with a PEG of 1.35. PEP earns a higher WallStSmart Score of 71/100 (B).
BTI
Buy60
out of 100
Grade: C
PEP
Strong Buy71
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+27.2%
Fair Value
$75.86
Current Price
$57.28
$18.58 discount
Margin of Safety
+2.6%
Fair Value
$139.91
Current Price
$136.32
$3.59 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Strong operational efficiency at 34.9%
Large-cap with strong market position
Keeps 25 of every $100 in revenue as profit
Attractively priced relative to earnings
Generating 2.5B in free cash flow
Every $100 of equity generates 47 in profit
Earnings expanding 137.0% YoY
Large-cap with strong market position
Attractively priced relative to earnings
Generating 1.5B in free cash flow
Areas to Watch
Trading at 9.8x book value
1.4% revenue growth
Earnings declined 28.6%
Distress zone — elevated risk
Trading at 8.4x book value
Weak financial health signals
Elevated debt levels
Comparative Analysis Report
WallStSmart ResearchBull 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 : PEP
The strongest argument for PEP centers on Return on Equity, EPS Growth, Market Cap. PEG of 1.40 suggests the stock is reasonably priced for its growth.
Bear Case : BTI
The primary concerns for BTI are Price/Book, Revenue Growth, EPS Growth.
Bear Case : PEP
The primary concerns for PEP are Price/Book, Piotroski F-Score, Debt/Equity. Debt-to-equity of 2.41 is elevated, increasing financial risk.
Key Dynamics to Monitor
PEP carries more volatility with a beta of 0.36 — expect wider price swings.
PEP is growing revenue faster at 6.4% — 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
PEP scores higher overall (71/100 vs 60/100). BTI offers better value entry with a 27.2% margin of safety. 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.
PepsiCo Inc
CONSUMER DEFENSIVE · BEVERAGES - NON-ALCOHOLIC · USA
PepsiCo, Inc. is an American based multinational food, snack, and beverage corporation headquartered in Harrison, New York, in the hamlet of Purchase. PepsiCo's business encompasses all aspects of the food and beverage market. It oversees the manufacturing, distribution, and marketing of its products.
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