WallStSmart

British American Tobacco p.l.c. (BTI)vsT-Mobile US Inc (TMUS)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

T-Mobile US Inc generates 253% more annual revenue ($90.53B vs $25.61B). BTI leads profitability with a 30.3% profit margin vs 11.7%. TMUS appears more attractively valued with a PEG of 0.77. TMUS earns a higher WallStSmart Score of 62/100 (C+).

BTI

Buy

60

out of 100

Grade: C+

Growth: 3.3Profit: 8.5Value: 6.7Quality: 5.0

TMUS

Buy

62

out of 100

Grade: C+

Growth: 4.0Profit: 7.0Value: 5.3Quality: 4.0
Piotroski: 4/9Altman Z: 1.06
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
TMUSSignificantly Overvalued (-65.0%)

Margin of Safety

-65.0%

Fair Value

$134.49

Current Price

$193.63

$59.14 premium

UndervaluedFair: $134.49Overvalued

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

TMUS4 strengths · Avg: 8.5/10
Market CapQuality
$210.16B10/10

Mega-cap, among the largest globally

PEG RatioValuation
0.778/10

Growing faster than its price suggests

Operating MarginProfitability
21.5%8/10

Strong operational efficiency at 21.5%

Free Cash FlowQuality
$4.60B8/10

Generating 4.6B in free cash flow

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

TMUS3 concerns · Avg: 2.3/10
Debt/EquityHealth
1.993/10

Elevated debt levels

EPS GrowthGrowth
-12.0%2/10

Earnings declined 12.0%

Altman Z-ScoreHealth
1.062/10

Distress zone — elevated risk

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 : TMUS

The strongest argument for TMUS centers on Market Cap, PEG Ratio, Operating Margin. Revenue growth of 10.6% demonstrates continued momentum. PEG of 0.77 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 : TMUS

The primary concerns for TMUS are Debt/Equity, EPS Growth, Altman Z-Score. Debt-to-equity of 1.99 is elevated, increasing financial risk.

Key Dynamics to Monitor

TMUS carries more volatility with a beta of 0.32 — expect wider price swings.

TMUS is growing revenue faster at 10.6% — sustainability is the question.

TMUS generates stronger free cash flow (4.6B), providing more financial flexibility.

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

Bottom Line

TMUS scores higher overall (62/100 vs 60/100) and 10.6% revenue growth. BTI offers better value entry with a 23.4% 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.

T-Mobile US Inc

COMMUNICATION SERVICES · TELECOM SERVICES · USA

T-Mobile US, Inc., doing business under the global brand name T-Mobile, is an American wireless network operator. Its headquarters are located in Bellevue, Washington, in the Seattle metropolitan area and Overland Park, Kansas, in the Kansas City metropolitan area.

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