British American Tobacco p.l.c. (BTI)vsPhilip Morris International Inc (PM)
BTI
British American Tobacco p.l.c.
$55.83
-0.34%
CONSUMER DEFENSIVE · Cap: $118.95B
PM
Philip Morris International Inc
$190.48
-0.98%
CONSUMER DEFENSIVE · Cap: $297.79B
Smart Verdict
WallStSmart Research — data-driven comparison
Philip Morris International Inc generates 65% more annual revenue ($42.55B vs $25.78B). PM leads profitability with a 25.6% profit margin vs 25.0%. BTI appears more attractively valued with a PEG of 1.35. BTI earns a higher WallStSmart Score of 60/100 (C).
BTI
Buy60
out of 100
Grade: C
PM
Buy54
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+27.2%
Fair Value
$75.86
Current Price
$55.83
$20.03 discount
Margin of Safety
-67.5%
Fair Value
$114.04
Current Price
$190.48
$76.44 premium
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
Mega-cap, among the largest globally
Strong operational efficiency at 40.0%
Conservative balance sheet, low leverage
Keeps 26 of every $100 in revenue as profit
Generating 5.1B in free cash flow
Areas to Watch
Trading at 9.6x book value
1.4% revenue growth
Earnings declined 28.6%
Distress zone — elevated risk
Expensive relative to growth rate
Moderate valuation
ROE of 0.0% — below average capital efficiency
Earnings declined 7.5%
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 : PM
The strongest argument for PM centers on Market Cap, Operating Margin, Debt/Equity. Profitability is solid with margins at 25.6% and operating margin at 40.0%. Revenue growth of 10.4% demonstrates continued momentum.
Bear Case : BTI
The primary concerns for BTI are Price/Book, Revenue Growth, EPS Growth.
Bear Case : PM
The primary concerns for PM are PEG Ratio, P/E Ratio, Return on Equity.
Key Dynamics to Monitor
BTI profiles as a value stock while PM is a mature play — different risk/reward profiles.
PM carries more volatility with a beta of 0.40 — expect wider price swings.
PM is growing revenue faster at 10.4% — sustainability is the question.
PM generates stronger free cash flow (5.1B), providing more financial flexibility.
Bottom Line
BTI scores higher overall (60/100 vs 54/100), backed by strong 25.0% margins. 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.
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.
Compare with Other TOBACCO Stocks
Want to dig deeper into these stocks?