British American Tobacco p.l.c. (BTI)vsPayPal Holdings Inc (PYPL)
BTI
British American Tobacco p.l.c.
$58.28
+0.34%
CONSUMER DEFENSIVE · Cap: $125.67B
PYPL
PayPal Holdings Inc
$45.37
-1.84%
FINANCIAL SERVICES · Cap: $40.82B
Smart Verdict
WallStSmart Research — data-driven comparison
PayPal Holdings Inc generates 32% more annual revenue ($33.73B vs $25.61B). BTI leads profitability with a 30.3% profit margin vs 15.0%. PYPL appears more attractively valued with a PEG of 0.91. PYPL earns a higher WallStSmart Score of 70/100 (B-).
BTI
Buy60
out of 100
Grade: C+
PYPL
Strong Buy70
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+23.4%
Fair Value
$78.80
Current Price
$58.28
$20.52 discount
Intrinsic value data unavailable for PYPL.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Keeps 30 of every $100 in revenue as profit
Strong operational efficiency at 34.6%
Large-cap with strong market position
Attractively priced relative to earnings
Generating 3.0B in free cash flow
Attractively priced relative to earnings
Every $100 of equity generates 25 in profit
Growing faster than its price suggests
Reasonable price relative to book value
Areas to Watch
Expensive relative to growth rate
Trading at 10.1x book value
0.1% revenue growth
1.6% earnings growth
Distress zone — elevated risk
Earnings declined 6.2%
Comparative Analysis Report
WallStSmart ResearchBull 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 : PYPL
The strongest argument for PYPL centers on P/E Ratio, Return on Equity, PEG Ratio. PEG of 0.91 suggests the stock is reasonably priced for its growth.
Bear Case : BTI
The primary concerns for BTI are PEG Ratio, Price/Book, Revenue Growth.
Bear Case : PYPL
The primary concerns for PYPL are Altman Z-Score, EPS Growth.
Key Dynamics to Monitor
PYPL carries more volatility with a beta of 1.40 — expect wider price swings.
PYPL is growing revenue faster at 7.2% — 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
PYPL scores higher overall (70/100 vs 60/100). BTI offers better value entry with a 23.4% margin of safety. Both earn "Strong 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.
PayPal Holdings Inc
FINANCIAL SERVICES · CREDIT SERVICES · USA
PayPal Holdings, Inc. is an American company operating an online payments system in the majority of countries that support online money transfers, and serves as an electronic alternative to traditional paper methods like checks and money orders. The company operates as a payment processor for online vendors, auction sites, and many other commercial users, for which it charges a fee.
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