WallStSmart

British American Tobacco p.l.c. (BTI)vsUnion Pacific Corporation (UNP)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

British American Tobacco p.l.c. generates 4% more annual revenue ($25.61B vs $24.51B). BTI leads profitability with a 30.3% profit margin vs 29.1%. BTI appears more attractively valued with a PEG of 0.41. BTI earns a higher WallStSmart Score of 64/100 (C+).

BTI

Buy

64

out of 100

Grade: C+

Growth: 3.3Profit: 8.5Value: 7.3Quality: 5.0

UNP

Buy

60

out of 100

Grade: C

Growth: 3.3Profit: 9.5Value: 5.3Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

BTISignificantly Overvalued (-39.2%)

Margin of Safety

-39.2%

Fair Value

$43.34

Current Price

$57.76

$14.42 premium

UndervaluedFair: $43.34Overvalued
UNPOvervalued (-13.1%)

Margin of Safety

-13.1%

Fair Value

$211.98

Current Price

$241.33

$29.35 premium

UndervaluedFair: $211.98Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

BTI6 strengths · Avg: 9.2/10
PEG RatioValuation
0.4110/10

Growing faster than its price suggests

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
$125.28B9/10

Large-cap with strong market position

P/E RatioValuation
12.4x8/10

Attractively priced relative to earnings

Price/BookValuation
2.0x8/10

Reasonable price relative to book value

UNP5 strengths · Avg: 9.2/10
Return on EquityProfitability
40.4%10/10

Every $100 of equity generates 40 in profit

Operating MarginProfitability
40.9%10/10

Strong operational efficiency at 40.9%

Market CapQuality
$142.22B9/10

Large-cap with strong market position

Profit MarginProfitability
29.1%9/10

Keeps 29 of every $100 in revenue as profit

Free Cash FlowQuality
$1.23B8/10

Generating 1.2B in free cash flow

Areas to Watch

BTI2 concerns · Avg: 4.0/10
Revenue GrowthGrowth
0.1%4/10

0.1% revenue growth

EPS GrowthGrowth
1.6%4/10

1.6% earnings growth

UNP2 concerns · Avg: 2.0/10
PEG RatioValuation
2.692/10

Expensive relative to growth rate

Revenue GrowthGrowth
-0.6%2/10

Revenue declined 0.6%

Comparative Analysis Report

WallStSmart Research

Bull Case : BTI

The strongest argument for BTI centers on PEG Ratio, Profit Margin, Operating Margin. Profitability is solid with margins at 30.3% and operating margin at 34.6%. PEG of 0.41 suggests the stock is reasonably priced for its growth.

Bull Case : UNP

The strongest argument for UNP centers on Return on Equity, Operating Margin, Market Cap. Profitability is solid with margins at 29.1% and operating margin at 40.9%.

Bear Case : BTI

The primary concerns for BTI are Revenue Growth, EPS Growth.

Bear Case : UNP

The primary concerns for UNP are PEG Ratio, Revenue Growth.

Key Dynamics to Monitor

BTI profiles as a value stock while UNP is a declining play — different risk/reward profiles.

UNP carries more volatility with a beta of 0.95 — expect wider price swings.

BTI is growing revenue faster at 0.1% — sustainability is the question.

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

Bottom Line

BTI scores higher overall (64/100 vs 60/100), 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.

Union Pacific Corporation

INDUSTRIALS · RAILROADS · USA

The Union Pacific Corporation (Union Pacific) is a publicly traded railroad holding company. It was incorporated in Utah in 1969 and is headquartered in Omaha, Nebraska. It is the parent company of the current, Delaware-registered, form of the Union Pacific Railroad.

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