British American Tobacco p.l.c. (BTI)vsPhilip Morris International Inc (PM)
BTI
British American Tobacco p.l.c.
$58.72
+1.08%
CONSUMER DEFENSIVE · Cap: $131.26B
PM
Philip Morris International Inc
$163.11
-0.16%
CONSUMER DEFENSIVE · Cap: $272.08B
Smart Verdict
WallStSmart Research — data-driven comparison
Philip Morris International Inc generates 59% more annual revenue ($40.65B vs $25.61B). BTI leads profitability with a 30.3% profit margin vs 27.9%. BTI appears more attractively valued with a PEG of 0.44. PM earns a higher WallStSmart Score of 70/100 (B-).
BTI
Buy62
out of 100
Grade: C+
PM
Strong Buy70
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-39.2%
Fair Value
$43.34
Current Price
$58.72
$15.38 premium
Margin of Safety
+19.1%
Fair Value
$201.82
Current Price
$163.11
$38.71 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Growing faster than its price suggests
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
Reasonable price relative to book value
Mega-cap, among the largest globally
Strong operational efficiency at 32.9%
Keeps 28 of every $100 in revenue as profit
Generating 4.3B in free cash flow
Areas to Watch
1.6% earnings growth
Expensive relative to growth rate
ROE of 0.0% — below average capital efficiency
Comparative Analysis Report
WallStSmart ResearchBull 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 0.44 suggests the stock is reasonably priced for its growth.
Bull Case : PM
The strongest argument for PM centers on Market Cap, Operating Margin, Profit Margin. Profitability is solid with margins at 27.9% and operating margin at 32.9%.
Bear Case : BTI
The primary concerns for BTI are EPS Growth.
Bear Case : PM
The primary concerns for PM are PEG Ratio, Return on Equity.
Key Dynamics to Monitor
PM carries more volatility with a beta of 0.40 — expect wider price swings.
BTI is growing revenue faster at 10.0% — sustainability is the question.
PM generates stronger free cash flow (4.3B), providing more financial flexibility.
Monitor TOBACCO industry trends, competitive dynamics, and regulatory changes.
Bottom Line
PM scores higher overall (70/100 vs 62/100), backed by strong 27.9% 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.
Philip Morris International Inc
CONSUMER DEFENSIVE · TOBACCO · USA
Philip Morris International Inc. (PMI) is a Swiss-American multinational cigarette and tobacco manufacturing company, with products sold in over 180 countries. The most recognized and best selling product of the company is Marlboro.
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