WallStSmart

British American Tobacco p.l.c. (BTI)vsTeradyne Inc (TER)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

British American Tobacco p.l.c. generates 576% more annual revenue ($25.61B vs $3.79B). BTI leads profitability with a 30.3% profit margin vs 22.6%. TER appears more attractively valued with a PEG of 1.51. TER earns a higher WallStSmart Score of 75/100 (B+).

BTI

Buy

60

out of 100

Grade: C+

Growth: 3.3Profit: 8.5Value: 6.7Quality: 5.0

TER

Strong Buy

75

out of 100

Grade: B+

Growth: 8.0Profit: 9.5Value: 3.7Quality: 6.8
Piotroski: 4/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

BTIUndervalued (+23.4%)

Margin of Safety

+23.4%

Fair Value

$78.80

Current Price

$58.28

$20.52 discount

UndervaluedFair: $78.80Overvalued

Intrinsic value data unavailable for TER.

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
$125.67B9/10

Large-cap with strong market position

P/E RatioValuation
12.3x8/10

Attractively priced relative to earnings

Free Cash FlowQuality
$2.98B8/10

Generating 3.0B in free cash flow

TER6 strengths · Avg: 9.5/10
Operating MarginProfitability
37.6%10/10

Strong operational efficiency at 37.6%

Revenue GrowthGrowth
87.0%10/10

Revenue surging 87.0% year-over-year

EPS GrowthGrowth
314.8%10/10

Earnings expanding 314.8% YoY

Market CapQuality
$55.43B9/10

Large-cap with strong market position

Return on EquityProfitability
28.7%9/10

Every $100 of equity generates 29 in profit

Profit MarginProfitability
22.6%9/10

Keeps 23 of every $100 in revenue as profit

Areas to Watch

BTI4 concerns · Avg: 4.0/10
PEG RatioValuation
1.524/10

Expensive relative to growth rate

Price/BookValuation
10.1x4/10

Trading at 10.1x book value

Revenue GrowthGrowth
0.1%4/10

0.1% revenue growth

EPS GrowthGrowth
1.6%4/10

1.6% earnings growth

TER3 concerns · Avg: 2.7/10
PEG RatioValuation
1.514/10

Expensive relative to growth rate

P/E RatioValuation
65.7x2/10

Premium valuation, high expectations priced in

Price/BookValuation
20.1x2/10

Trading at 20.1x 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 : TER

The strongest argument for TER centers on Operating Margin, Revenue Growth, EPS Growth. Profitability is solid with margins at 22.6% and operating margin at 37.6%. Revenue growth of 87.0% demonstrates continued momentum.

Bear Case : BTI

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

Bear Case : TER

The primary concerns for TER are PEG Ratio, P/E Ratio, Price/Book. A P/E of 65.7x leaves little room for execution misses.

Key Dynamics to Monitor

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

TER carries more volatility with a beta of 1.79 — expect wider price swings.

TER is growing revenue faster at 87.0% — sustainability is the question.

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

Bottom Line

TER scores higher overall (75/100 vs 60/100), backed by strong 22.6% margins and 87.0% revenue growth. BTI offers better value entry with a 23.4% 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.

Teradyne Inc

TECHNOLOGY · SEMICONDUCTOR EQUIPMENT & MATERIALS · USA

Teradyne, Inc. is an American automatic test equipment (ATE) designer and manufacturer based in North Reading, Massachusetts.

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