WallStSmart

British American Tobacco p.l.c. (BTI)vsPhilip Morris International Inc (PM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Philip Morris International Inc generates 62% more annual revenue ($41.49B vs $25.61B). BTI leads profitability with a 30.3% profit margin vs 26.7%. BTI appears more attractively valued with a PEG of 1.47. BTI earns a higher WallStSmart Score of 62/100 (C+).

BTI

Buy

62

out of 100

Grade: C+

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

PM

Buy

54

out of 100

Grade: C-

Growth: 4.7Profit: 8.5Value: 4.0Quality: 5.3
Piotroski: 5/9Altman Z: 2.18
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

BTIUndervalued (+23.6%)

Margin of Safety

+23.6%

Fair Value

$78.92

Current Price

$58.35

$20.57 discount

UndervaluedFair: $78.92Overvalued
PMSignificantly Overvalued (-46.5%)

Margin of Safety

-46.5%

Fair Value

$115.51

Current Price

$166.38

$50.87 premium

UndervaluedFair: $115.51Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

BTI5 strengths · Avg: 9.0/10
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
$127.25B9/10

Large-cap with strong market position

P/E RatioValuation
12.5x8/10

Attractively priced relative to earnings

Free Cash FlowQuality
$2.98B8/10

Generating 3.0B in free cash flow

PM3 strengths · Avg: 9.7/10
Market CapQuality
$263.69B10/10

Mega-cap, among the largest globally

Operating MarginProfitability
36.0%10/10

Strong operational efficiency at 36.0%

Profit MarginProfitability
26.7%9/10

Keeps 27 of every $100 in revenue as profit

Areas to Watch

BTI3 concerns · Avg: 4.0/10
Price/BookValuation
10.2x4/10

Trading at 10.2x book value

Revenue GrowthGrowth
0.1%4/10

0.1% revenue growth

EPS GrowthGrowth
1.6%4/10

1.6% earnings growth

PM4 concerns · Avg: 2.8/10
PEG RatioValuation
1.904/10

Expensive relative to growth rate

Return on EquityProfitability
0.0%3/10

ROE of 0.0% — below average capital efficiency

EPS GrowthGrowth
-9.3%2/10

Earnings declined 9.3%

Free Cash FlowQuality
$-752.00M2/10

Negative free cash flow — burning cash

Comparative Analysis Report

WallStSmart Research

Bull Case : BTI

The strongest argument for BTI centers on Profit Margin, Operating Margin, Market Cap. Profitability is solid with margins at 30.3% and operating margin at 34.6%. PEG of 1.47 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 26.7% and operating margin at 36.0%.

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, Return on Equity, EPS Growth.

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 0.39 — expect wider price swings.

PM is growing revenue faster at 9.1% — sustainability is the question.

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

Bottom Line

BTI scores higher overall (62/100 vs 54/100), backed by strong 30.3% 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.

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