WallStSmart

British American Tobacco p.l.c. (BTI)vsTarget Corporation (TGT)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Target Corporation generates 315% more annual revenue ($106.38B vs $25.61B). BTI leads profitability with a 30.3% profit margin vs 3.2%. BTI appears more attractively valued with a PEG of 1.60. BTI earns a higher WallStSmart Score of 59/100 (C).

BTI

Buy

59

out of 100

Grade: C

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

TGT

Buy

52

out of 100

Grade: C-

Growth: 3.3Profit: 5.5Value: 4.7Quality: 4.5
Piotroski: 3/9Altman Z: 2.47
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

BTIUndervalued (+21.0%)

Margin of Safety

+21.0%

Fair Value

$75.72

Current Price

$63.08

$12.64 discount

UndervaluedFair: $75.72Overvalued
TGTUndervalued (+4.0%)

Margin of Safety

+4.0%

Fair Value

$119.36

Current Price

$145.90

$26.54 discount

UndervaluedFair: $119.36Overvalued

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
$133.90B9/10

Large-cap with strong market position

Return on EquityProfitability
22.6%9/10

Every $100 of equity generates 23 in profit

P/E RatioValuation
13.3x8/10

Attractively priced relative to earnings

Free Cash FlowQuality
$2.98B8/10

Generating 3.0B in free cash flow

TGT2 strengths · Avg: 9.0/10
Market CapQuality
$63.40B9/10

Large-cap with strong market position

Return on EquityProfitability
21.0%9/10

Every $100 of equity generates 21 in profit

Areas to Watch

BTI4 concerns · Avg: 4.0/10
PEG RatioValuation
1.604/10

Expensive relative to growth rate

Price/BookValuation
11.1x4/10

Trading at 11.1x book value

Revenue GrowthGrowth
0.1%4/10

0.1% revenue growth

EPS GrowthGrowth
1.6%4/10

1.6% earnings growth

TGT4 concerns · Avg: 3.0/10
Profit MarginProfitability
3.2%3/10

3.2% margin — thin

Operating MarginProfitability
4.5%3/10

Operating margin of 4.5%

Debt/EquityHealth
1.153/10

Elevated debt levels

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

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 : TGT

The strongest argument for TGT centers on Market Cap, Return on Equity.

Bear Case : BTI

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

Bear Case : TGT

The primary concerns for TGT are Profit Margin, Operating Margin, Debt/Equity. Thin 3.2% margins leave little buffer for downturns.

Key Dynamics to Monitor

TGT carries more volatility with a beta of 0.98 — expect wider price swings.

TGT is growing revenue faster at 6.7% — 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 (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.

Target Corporation

CONSUMER DEFENSIVE · DISCOUNT STORES · USA

Target Corporation is an American retail corporation. Their retail formats include the discount store Target, the hypermarket SuperTarget, and small-format stores previously named CityTarget and TargetExpress before being consolidated under the Target branding.

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