British American Tobacco p.l.c. (BTI)vsPhilip Morris International Inc (PM)
BTI
British American Tobacco p.l.c.
$57.84
-0.97%
CONSUMER DEFENSIVE · Cap: $131.94B
PM
Philip Morris International Inc
$178.29
-0.58%
CONSUMER DEFENSIVE · Cap: $283.36B
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 1.57. BTI earns a higher WallStSmart Score of 59/100 (C).
BTI
Buy59
out of 100
Grade: C
PM
Buy52
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+19.2%
Fair Value
$75.94
Current Price
$57.84
$18.10 discount
Margin of Safety
-67.4%
Fair Value
$109.96
Current Price
$178.29
$68.33 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Keeps 30 of every $100 in revenue as profit
Strong operational efficiency at 34.6%
Large-cap with strong market position
Every $100 of equity generates 23 in profit
Attractively priced relative to earnings
Generating 3.0B in free cash flow
Mega-cap, among the largest globally
Strong operational efficiency at 36.0%
Conservative balance sheet, low leverage
Keeps 27 of every $100 in revenue as profit
Areas to Watch
Expensive relative to growth rate
Trading at 10.2x book value
0.1% revenue growth
1.6% earnings growth
Moderate valuation
ROE of 0.0% — below average capital efficiency
Expensive relative to growth rate
Earnings declined 9.3%
Comparative Analysis Report
WallStSmart ResearchBull 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%.
Bull Case : PM
The strongest argument for PM centers on Market Cap, Operating Margin, Debt/Equity. Profitability is solid with margins at 26.7% and operating margin at 36.0%.
Bear Case : BTI
The primary concerns for BTI are PEG Ratio, Price/Book, Revenue Growth.
Bear Case : PM
The primary concerns for PM are P/E Ratio, Return on Equity, PEG Ratio.
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 0.41 — 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 (59/100 vs 52/100), 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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