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BTI vs MO

BTI
British American Tobacco p.l.c.
NEUTRAL
Price
$59.16
Market Cap
$128.41B
Sector
Consumer Defensive
AI Confidence
72%
MO
Altria Group, Inc.
BEARISH
Price
$68.20
Market Cap
$114.02B
Sector
Consumer Defensive
AI Confidence
85%

Valuation

P/E Ratio
BTI
31.47
MO
16.55
Forward P/E
BTI
12.14
MO
11.73
P/B Ratio
BTI
2.13
MO
-32.6
P/S Ratio
BTI
5.02
MO
5.66
EV/EBITDA
BTI
13.09
MO
8.67

Profitability

Gross Margin
BTI
82.86%
MO
87.34%
Operating Margin
BTI
42.04%
MO
116.7%
Profit Margin
BTI
12.06%
MO
34.49%
ROE
BTI
6.27%
MO
--
ROA
BTI
5.59%
MO
27.32%

Growth

Revenue Growth
BTI
-2.2%
MO
-0.5%
Earnings Growth
BTI
1.6%
MO
-62.9%

Financial Health

Debt/Equity
BTI
0.75
MO
--
Current Ratio
BTI
0.87
MO
0.65
Quick Ratio
BTI
0.53
MO
0.52

Dividends

Dividend Yield
BTI
5.3%
MO
6.22%
Payout Ratio
BTI
168.95%
MO
100.97%

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
MO BEARISH

Altria Group presents a precarious financial profile characterized by a stable but mediocre Piotroski F-Score of 4/9 and a severe valuation disconnect. The stock is trading at $68.20, which is significantly above its growth-based intrinsic value of $28.84. Most concerning is the dividend payout ratio of 100.97%, indicating that the dividend is currently unsustainable based on earnings. Combined with negative revenue and earnings growth, the company appears to be in a value-trap scenario despite its high profit margins.

Strengths
Exceptional gross margins (87.34%)
Strong profit margins (34.49%)
High Return on Assets (27.32%)
Risks
Unsustainable dividend payout ratio (100.97%)
Severe earnings contraction (-62.90% YoY)
Significant overvaluation relative to intrinsic value ($28.84)

Compare Another Pair

BTI vs MO: Head-to-Head Comparison

This page compares British American Tobacco p.l.c. (BTI) and Altria Group, Inc. (MO) 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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