British American Tobacco p.l.c. (BTI)vsSouthern Company (SO)
BTI
British American Tobacco p.l.c.
$58.28
+0.34%
CONSUMER DEFENSIVE · Cap: $125.67B
SO
Southern Company
$91.80
-0.68%
UTILITIES · Cap: $103.49B
Smart Verdict
WallStSmart Research — data-driven comparison
Southern Company generates 18% more annual revenue ($30.18B vs $25.61B). BTI leads profitability with a 30.3% profit margin vs 14.5%. BTI appears more attractively valued with a PEG of 1.52. BTI earns a higher WallStSmart Score of 60/100 (C+).
BTI
Buy60
out of 100
Grade: C+
SO
Buy56
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+23.4%
Fair Value
$78.80
Current Price
$58.28
$20.52 discount
Margin of Safety
-26.1%
Fair Value
$73.33
Current Price
$91.80
$18.47 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
Attractively priced relative to earnings
Generating 3.0B in free cash flow
Large-cap with strong market position
Reasonable price relative to book value
Strong operational efficiency at 25.8%
Areas to Watch
Expensive relative to growth rate
Trading at 10.1x book value
0.1% revenue growth
1.6% earnings growth
Expensive relative to growth rate
Earnings declined 0.8%
Negative free cash flow — burning cash
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 : SO
The strongest argument for SO centers on Market Cap, Price/Book, Operating Margin.
Bear Case : BTI
The primary concerns for BTI are PEG Ratio, Price/Book, Revenue Growth.
Bear Case : SO
The primary concerns for SO are PEG Ratio, EPS Growth, Free Cash Flow.
Key Dynamics to Monitor
SO carries more volatility with a beta of 0.36 — expect wider price swings.
SO is growing revenue faster at 8.0% — sustainability is the question.
BTI generates stronger free cash flow (3.0B), providing more financial flexibility.
Monitor TOBACCO industry trends, competitive dynamics, and regulatory changes.
Bottom Line
BTI scores higher overall (60/100 vs 56/100), 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.
Southern Company
UTILITIES · UTILITIES - REGULATED ELECTRIC · USA
Southern Company is an American gas and electric utility holding company based in the southern United States. It is headquartered in Atlanta, Georgia, with executive offices also located in Birmingham, Alabama.
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