British American Tobacco p.l.c. (BTI)vsThe Coca-Cola Company (KO)
BTI
British American Tobacco p.l.c.
$61.52
+0.74%
CONSUMER DEFENSIVE · Cap: $132.22B
KO
The Coca-Cola Company
$94.08
+1.36%
CONSUMER DEFENSIVE · Cap: $404.72B
Smart Verdict
WallStSmart Research — data-driven comparison
The Coca-Cola Company generates 98% more annual revenue ($51.05B vs $25.78B). KO leads profitability with a 28.6% profit margin vs 25.0%. BTI appears more attractively valued with a PEG of 1.54. KO earns a higher WallStSmart Score of 61/100 (C+).
BTI
Buy55
out of 100
Grade: C
KO
Buy61
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+18.7%
Fair Value
$75.64
Current Price
$61.52
$14.12 discount
Margin of Safety
-46.0%
Fair Value
$64.44
Current Price
$94.08
$29.64 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Strong operational efficiency at 34.9%
Large-cap with strong market position
Keeps 25 of every $100 in revenue as profit
Attractively priced relative to earnings
Generating 2.5B in free cash flow
Mega-cap, among the largest globally
Every $100 of equity generates 40 in profit
Strong operational efficiency at 33.4%
Keeps 29 of every $100 in revenue as profit
Generating 5.1B in free cash flow
Areas to Watch
Expensive relative to growth rate
Trading at 10.7x book value
1.4% revenue growth
Earnings declined 28.6%
Moderate valuation
Trading at 10.8x book value
Elevated debt levels
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : BTI
The strongest argument for BTI centers on Operating Margin, Market Cap, Profit Margin. Profitability is solid with margins at 25.0% and operating margin at 34.9%.
Bull Case : KO
The strongest argument for KO centers on Market Cap, Return on Equity, Operating Margin. Profitability is solid with margins at 28.6% and operating margin at 33.4%.
Bear Case : BTI
The primary concerns for BTI are PEG Ratio, Price/Book, Revenue Growth.
Bear Case : KO
The primary concerns for KO are P/E Ratio, Price/Book, Debt/Equity.
Key Dynamics to Monitor
BTI profiles as a value stock while KO is a mature play — different risk/reward profiles.
KO carries more volatility with a beta of 0.32 — expect wider price swings.
KO is growing revenue faster at 7.4% — sustainability is the question.
KO generates stronger free cash flow (5.1B), providing more financial flexibility.
Bottom Line
KO scores higher overall (61/100 vs 55/100), backed by strong 28.6% margins. BTI offers better value entry with a 18.7% 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.
The Coca-Cola Company
CONSUMER DEFENSIVE · BEVERAGES - NON-ALCOHOLIC · USA
The Coca-Cola Company is an American multinational beverage corporation incorporated under Delaware's General Corporation Law and headquartered in Atlanta, Georgia. The Coca-Cola Company has interests in the manufacturing, retailing, and marketing of nonalcoholic beverage concentrates and syrups.
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