British American Tobacco p.l.c. (BTI)vsTarget Corporation (TGT)
BTI
British American Tobacco p.l.c.
$55.24
+0.69%
CONSUMER DEFENSIVE · Cap: $118.95B
TGT
Target Corporation
$155.83
+0.06%
CONSUMER DEFENSIVE · Cap: $70.79B
Smart Verdict
WallStSmart Research — data-driven comparison
Target Corporation generates 318% more annual revenue ($107.70B vs $25.78B). BTI leads profitability with a 25.0% profit margin vs 4.1%. BTI appears more attractively valued with a PEG of 1.35. TGT earns a higher WallStSmart Score of 66/100 (B-).
BTI
Buy60
out of 100
Grade: C
TGT
Strong Buy66
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+27.2%
Fair Value
$75.86
Current Price
$55.24
$20.62 discount
Margin of Safety
+5.3%
Fair Value
$120.98
Current Price
$155.83
$34.85 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Strong operational efficiency at 34.9%
Large-cap with strong market position
Keeps 25 of every $100 in revenue as profit
Attractively priced relative to earnings
Generating 2.5B in free cash flow
Earnings expanding 100.5% YoY
Large-cap with strong market position
Every $100 of equity generates 25 in profit
Attractively priced relative to earnings
Generating 2.4B in free cash flow
Areas to Watch
Trading at 9.5x book value
1.4% revenue growth
Earnings declined 28.6%
Distress zone — elevated risk
Expensive relative to growth rate
4.1% margin — thin
Elevated debt levels
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : BTI
The strongest argument for BTI centers on Operating Margin, Market Cap, Profit Margin. Profitability is solid with margins at 25.0% and operating margin at 34.9%. PEG of 1.35 suggests the stock is reasonably priced for its growth.
Bull Case : TGT
The strongest argument for TGT centers on EPS Growth, Market Cap, Return on Equity.
Bear Case : BTI
The primary concerns for BTI are Price/Book, Revenue Growth, EPS Growth.
Bear Case : TGT
The primary concerns for TGT are PEG Ratio, Profit Margin, Debt/Equity. Thin 4.1% margins leave little buffer for downturns.
Key Dynamics to Monitor
TGT carries more volatility with a beta of 0.99 — expect wider price swings.
TGT is growing revenue faster at 5.3% — sustainability is the question.
BTI generates stronger free cash flow (2.5B), providing more financial flexibility.
Monitor TOBACCO industry trends, competitive dynamics, and regulatory changes.
Bottom Line
TGT scores higher overall (66/100 vs 60/100). BTI offers better value entry with a 27.2% 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.
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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