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BTI vs COST

BTI
British American Tobacco p.l.c.
NEUTRAL
Price
$59.16
Market Cap
$128.41B
Sector
Consumer Defensive
AI Confidence
72%
COST
Costco Wholesale Corporation
NEUTRAL
Price
$996.43
Market Cap
$442.28B
Sector
Consumer Defensive
AI Confidence
80%

Valuation

P/E Ratio
BTI
31.47
COST
51.82
Forward P/E
BTI
12.14
COST
44.4
P/B Ratio
BTI
2.13
COST
13.78
P/S Ratio
BTI
5.02
COST
1.55
EV/EBITDA
BTI
13.09
COST
32.11

Profitability

Gross Margin
BTI
82.86%
COST
12.93%
Operating Margin
BTI
42.04%
COST
3.74%
Profit Margin
BTI
12.06%
COST
2.99%
ROE
BTI
6.27%
COST
29.65%
ROA
BTI
5.59%
COST
8.72%

Growth

Revenue Growth
BTI
-2.2%
COST
9.2%
Earnings Growth
BTI
1.6%
COST
13.9%

Financial Health

Debt/Equity
BTI
0.75
COST
0.26
Current Ratio
BTI
0.87
COST
1.06
Quick Ratio
BTI
0.53
COST
0.54

Dividends

Dividend Yield
BTI
5.3%
COST
0.52%
Payout Ratio
BTI
168.95%
COST
27.04%

AI Verdict

BTI NEUTRAL

BTI's deterministic health score is stable with a Piotroski F-Score of 6/9, indicating moderate financial strength, though the absence of an Altman Z-Score limits distress risk assessment. The stock trades significantly above its Graham Number of $34.30 at $59.16, reflecting a rich valuation despite declining revenue and a concerning 168.95% dividend payout ratio. Strong operating margins and a high dividend yield provide support, but deteriorating growth and weak technicals (10/100) offset these advantages. Analysts recommend a buy with a near-current target price, suggesting limited upside.

Strengths
High dividend yield of 5.30% offers attractive income potential
Exceptional operating margin of 42.04% and gross margin of 82.86% reflect strong pricing power
Piotroski F-Score of 6 indicates stable financial health
Risks
Dividend payout ratio of 168.95% is unsustainable long-term
Revenue growth is negative YoY at -2.20%, indicating top-line contraction
Current ratio of 0.87 and quick ratio of 0.53 suggest short-term liquidity pressure
COST NEUTRAL

COST shows neutral fundamentals based on deterministic rules. Financial strength is stable (F-Score 4/9). Mixed signals with both opportunities and risks present.

Strengths
Low debt with D/E ratio of 0.26
Strong ROE of 29.7%
Risks
High valuation with P/E of 51.8
Premium vs Graham Number ($176.89)
Low profit margin of 3.0%

Compare Another Pair

BTI vs COST: Head-to-Head Comparison

This page compares British American Tobacco p.l.c. (BTI) and Costco Wholesale Corporation (COST) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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