WallStSmart

British American Tobacco p.l.c. (BTI)vsSterling Construction Company Inc (STRL)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

British American Tobacco p.l.c. generates 788% more annual revenue ($25.61B vs $2.88B). BTI leads profitability with a 30.3% profit margin vs 12.0%. STRL appears more attractively valued with a PEG of 1.47. STRL earns a higher WallStSmart Score of 69/100 (B-).

BTI

Buy

59

out of 100

Grade: C

Growth: 3.3Profit: 8.5Value: 6.7Quality: 5.0
Piotroski: 7/9Altman Z: 1.33

STRL

Strong Buy

69

out of 100

Grade: B-

Growth: 9.3Profit: 8.0Value: 4.3Quality: 7.0
Piotroski: 4/9Altman Z: 2.39
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

BTIUndervalued (+19.2%)

Margin of Safety

+19.2%

Fair Value

$75.94

Current Price

$57.84

$18.10 discount

UndervaluedFair: $75.94Overvalued

Intrinsic value data unavailable for STRL.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

BTI6 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
$131.94B9/10

Large-cap with strong market position

Return on EquityProfitability
22.6%9/10

Every $100 of equity generates 23 in profit

P/E RatioValuation
13.1x8/10

Attractively priced relative to earnings

Free Cash FlowQuality
$2.98B8/10

Generating 3.0B in free cash flow

STRL4 strengths · Avg: 9.5/10
Revenue GrowthGrowth
91.6%10/10

Revenue surging 91.6% year-over-year

EPS GrowthGrowth
141.4%10/10

Earnings expanding 141.4% YoY

Return on EquityProfitability
29.1%9/10

Every $100 of equity generates 29 in profit

Debt/EquityHealth
0.299/10

Conservative balance sheet, low leverage

Areas to Watch

BTI4 concerns · Avg: 4.0/10
PEG RatioValuation
1.574/10

Expensive relative to growth rate

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

STRL2 concerns · Avg: 2.0/10
P/E RatioValuation
76.9x2/10

Premium valuation, high expectations priced in

Price/BookValuation
24.4x2/10

Trading at 24.4x book value

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%.

Bull Case : STRL

The strongest argument for STRL centers on Revenue Growth, EPS Growth, Return on Equity. Revenue growth of 91.6% demonstrates continued momentum. PEG of 1.47 suggests the stock is reasonably priced for its growth.

Bear Case : BTI

The primary concerns for BTI are PEG Ratio, Price/Book, Revenue Growth.

Bear Case : STRL

The primary concerns for STRL are P/E Ratio, Price/Book. A P/E of 76.9x leaves little room for execution misses.

Key Dynamics to Monitor

BTI profiles as a value stock while STRL is a growth play — different risk/reward profiles.

STRL carries more volatility with a beta of 1.82 — expect wider price swings.

STRL is growing revenue faster at 91.6% — sustainability is the question.

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

Bottom Line

STRL scores higher overall (69/100 vs 59/100) and 91.6% revenue growth. BTI offers better value entry with a 19.2% margin of safety. 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.

Sterling Construction Company Inc

INDUSTRIALS · ENGINEERING & CONSTRUCTION · USA

Sterling Construction Company, Inc., a construction company, engages in residential construction, specialty services, and heavy civil activities primarily in the southern United States, the Rocky Mountain states, California, and Hawaii. The company is headquartered in The Woodlands, Texas.

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