WallStSmart

British American Tobacco p.l.c. (BTI)vsWarner Bros Discovery Inc (WBD)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Warner Bros Discovery Inc generates 46% more annual revenue ($37.30B vs $25.61B). BTI leads profitability with a 30.3% profit margin vs 1.9%. BTI 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

WBD

Buy

51

out of 100

Grade: C-

Growth: 5.3Profit: 4.5Value: 5.7Quality: 4.3
Piotroski: 4/9Altman Z: 0.59
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
WBDUndervalued (+60.6%)

Margin of Safety

+60.6%

Fair Value

$71.08

Current Price

$27.11

$43.97 discount

UndervaluedFair: $71.08Overvalued

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

WBD3 strengths · Avg: 9.0/10
EPS GrowthGrowth
226.7%10/10

Earnings expanding 226.7% YoY

Market CapQuality
$67.99B9/10

Large-cap with strong market position

Price/BookValuation
1.9x8/10

Reasonable price relative to book value

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

WBD4 concerns · Avg: 2.5/10
Return on EquityProfitability
2.1%3/10

ROE of 2.1% — below average capital efficiency

Profit MarginProfitability
1.9%3/10

1.9% margin — thin

PEG RatioValuation
216.922/10

Expensive relative to growth rate

Revenue GrowthGrowth
-5.7%2/10

Revenue declined 5.7%

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 : WBD

The strongest argument for WBD centers on EPS Growth, Market Cap, Price/Book.

Bear Case : BTI

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

Bear Case : WBD

The primary concerns for WBD are Return on Equity, Profit Margin, PEG Ratio. Thin 1.9% margins leave little buffer for downturns.

Key Dynamics to Monitor

WBD carries more volatility with a beta of 1.57 — 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.

Monitor TOBACCO industry trends, competitive dynamics, and regulatory changes.

Bottom Line

BTI scores higher overall (60/100 vs 51/100), backed by strong 30.3% margins. WBD offers better value entry with a 60.6% margin of safety. 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.

Warner Bros Discovery Inc

COMMUNICATION SERVICES · ENTERTAINMENT · USA

Warner Bros. The company is headquartered in New York, New York.

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