WallStSmart

British American Tobacco p.l.c. (BTI)vsWaters Corporation (WAT)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

British American Tobacco p.l.c. generates 579% more annual revenue ($25.61B vs $3.77B). BTI leads profitability with a 30.3% profit margin vs 11.9%. WAT appears more attractively valued with a PEG of 1.52. BTI earns a higher WallStSmart Score of 60/100 (C+).

BTI

Buy

60

out of 100

Grade: C+

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

WAT

Buy

52

out of 100

Grade: C-

Growth: 5.3Profit: 5.5Value: 3.3Quality: 6.8
Piotroski: 4/9Altman Z: 4.92
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
WATSignificantly Overvalued (-63.1%)

Margin of Safety

-63.1%

Fair Value

$201.83

Current Price

$355.13

$153.30 premium

UndervaluedFair: $201.83Overvalued

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

WAT2 strengths · Avg: 10.0/10
Revenue GrowthGrowth
91.5%10/10

Revenue surging 91.5% year-over-year

Altman Z-ScoreHealth
4.9210/10

Safe zone — low bankruptcy risk

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

WAT4 concerns · Avg: 3.3/10
PEG RatioValuation
1.524/10

Expensive relative to growth rate

Price/BookValuation
8.3x4/10

Trading at 8.3x book value

Return on EquityProfitability
5.2%3/10

ROE of 5.2% — below average capital efficiency

P/E RatioValuation
44.6x2/10

Premium valuation, high expectations priced in

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 : WAT

The strongest argument for WAT centers on Revenue Growth, Altman Z-Score. Revenue growth of 91.5% demonstrates continued momentum.

Bear Case : BTI

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

Bear Case : WAT

The primary concerns for WAT are PEG Ratio, Price/Book, Return on Equity. A P/E of 44.6x leaves little room for execution misses.

Key Dynamics to Monitor

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

WAT carries more volatility with a beta of 1.14 — expect wider price swings.

WAT is growing revenue faster at 91.5% — sustainability is the question.

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

Bottom Line

BTI scores higher overall (60/100 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.

Waters Corporation

HEALTHCARE · DIAGNOSTICS & RESEARCH · USA

Waters Corporation is a publicly traded Analytical Laboratory instrument and software company headquartered in Milford, Massachusetts.

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