BTI vs. DEO: British American Tobacco vs. Diageo Stock Comparison

November 11, 2026

How do British American Tobacco (BTI) and Diageo (DEO) stack up? This page sets them side by side across company profile, performance and risk, profitability, growth, financial strength, dividends, and valuation, with selected fundamentals also measured against each stock's industry-group peers.

Company Profile

British American Tobacco (BTI) and Diageo (DEO) both fall under the Food, Beverage & Tobacco industry group, but BTI is classified in Tobacco while DEO is classified in Beverages.

Both British American Tobacco (BTI) and Diageo (DEO) trade as ADRs — their core financials are comparable, but keep FX, depositary-program fees, and dividend withholding in view for each.

Company profile comparison for British American Tobacco (BTI) and Diageo (DEO)
Profile Item	BTI	DEO
Name	British American Tobacco plc ADR	Diageo plc Sponsored ADR
Country/Region	United Kingdom	United Kingdom
GICS Sector	Consumer Staples	Consumer Staples
GICS Industry Group	Food, Beverage & Tobacco	Food, Beverage & Tobacco
GICS Industry	Tobacco	Beverages
GICS Sub-Industry	Tobacco	Distillers & Vintners
Market Capitalization	130.83 billion USD	55.56 billion USD
Currency	USD	USD
Exchange	NYSE	NYSE
Listing Date	April 14, 1980	March 14, 1991
Security Type	ADR	ADR

Price Performance

Cumulative Growth

BTI

DEO

GSPC

British American Tobacco (BTI) vs. Diageo (DEO), with S&P 500 (GSPC) for reference: Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for British American Tobacco (BTI) and Diageo (DEO). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for British American Tobacco (BTI) and Diageo (DEO). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Price performance metrics for British American Tobacco (BTI) and Diageo (DEO)
Metric	BTI	DEO
Total Return (1Y)	16.59%	13.51%
Total Return (3Y, Annualized)	34.31%	-11.57%
Total Return (5Y, Annualized)	20.24%	-10.73%

Risk Profile

Drawdown History

BTI

DEO

GSPC

British American Tobacco (BTI) vs. Diageo (DEO), with S&P 500 (GSPC) for reference: Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for British American Tobacco (BTI) and Diageo (DEO). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for British American Tobacco (BTI) and Diageo (DEO)
Metric	BTI	DEO
Volatility (1Y, Annualized)	26.28%	33.21%
Beta (5Y)	0.29	0.52
Max Drawdown (5Y)	-29.84%	-63.41%
Avg. Volume (3M)	5.01M	1.07M

Risk-Adjusted Performance

Risk-Return Positioning

BTI and DEO are plotted by 1-year volatility (risk) and 1-year return. The dashed Capital Allocation Line runs from the risk-free rate through the shared industry median.

Risk-Adjusted Metrics

Risk-adjusted metrics for British American Tobacco (BTI) and Diageo (DEO)
Metric	BTI	DEO
Sharpe Ratio (1Y)	0.47	0.28
Sortino Ratio (1Y)	0.71	0.38

Profitability

ROE (TTM)

Both British American Tobacco (BTI) at 13.42% and Diageo (DEO) at 14.99% land near their industries’ usual ROE ranges, so capital efficiency looks broadly in line with peers on both sides.

BTI

Food, Beverage & Tobacco industry group

13.42%

Max: 32.02%
Q3: 16.61%
BTI: 13.42%
Median: 10.05%
Q1: 4.10%
Min: -10.50%

DEO

Food, Beverage & Tobacco industry group

14.99%

Max: 32.02%
Q3: 16.61%
DEO: 14.99%
Median: 10.05%
Q1: 4.10%
Min: -10.50%

British American Tobacco (BTI) vs. Diageo (DEO): A comparison of their ROE against the Food, Beverage & Tobacco industry group benchmark.

Net Margin (TTM)

British American Tobacco (BTI) at 24.99% converts revenue to bottom-line profit above its industry’s benchmark range, while Diageo (DEO) at 8.84% keeps roughly the typical share for its industry.

BTI

Food, Beverage & Tobacco industry group

24.99%

BTI: 24.99%
Max: 24.83%
Q3: 11.22%
Median: 5.94%
Q1: 2.05%
Min: -11.49%

DEO

Food, Beverage & Tobacco industry group

8.84%

Max: 24.83%
Q3: 11.22%
DEO: 8.84%
Median: 5.94%
Q1: 2.05%
Min: -11.49%

British American Tobacco (BTI) vs. Diageo (DEO): A comparison of their net margin against the Food, Beverage & Tobacco industry group benchmark.

Operating Margin (TTM)

Both British American Tobacco (BTI) at 34.91% and Diageo (DEO) at 27.04% convert sales into operating profit at a top-quartile rate, pointing to tighter cost discipline before financing and tax.

BTI

Food, Beverage & Tobacco industry group

34.91%

BTI: 34.91%
Max: 34.91%
Q3: 17.57%
Median: 11.06%
Q1: 4.15%
Min: -15.06%

DEO

Food, Beverage & Tobacco industry group

27.04%

Max: 34.91%
DEO: 27.04%
Q3: 17.57%
Median: 11.06%
Q1: 4.15%
Min: -15.06%

British American Tobacco (BTI) vs. Diageo (DEO): A comparison of their operating margin against the Food, Beverage & Tobacco industry group benchmark.

Profitability Metrics

Profitability metrics for British American Tobacco (BTI) and Diageo (DEO)
Metric	BTI	DEO
ROE (TTM)	13.42%	14.99%
ROA (TTM)	5.12%	7.48%
Net Margin (TTM)	24.99%	8.84%
Operating Margin (TTM)	34.91%	27.04%
Gross Margin (TTM)	82.72%	59.82%

Growth

Revenue Growth

British American Tobacco (BTI) at -0.99% is around its peer norm for revenue growth, while Diageo (DEO) at -2.97% drops into the bottom quartile, signaling weaker demand or pricing momentum.

British American Tobacco (BTI) vs. Diageo (DEO): A comparison of their Revenue Growth across different time periods.

EPS Growth

British American Tobacco (BTI) at 156.69% clears its industry range for EPS growth, a much stronger earnings trajectory than Diageo (DEO) at -26.30%, which is closer to a typical peer reading.

British American Tobacco (BTI) vs. Diageo (DEO): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for British American Tobacco (BTI) and Diageo (DEO)
Metric	BTI	DEO
Revenue Growth (YoY)	-0.99%	-2.97%
Revenue Growth (3Y CAGR)	-2.53%	-1.50%
EPS Growth (YoY)	156.69%	-26.30%
EPS Growth (3Y CAGR)	6.15%	-27.84%

Financial Strength

Current Ratio (MRQ)

Diageo (DEO) at 1.60 keeps current ratio within its industry’s typical mid-range, while British American Tobacco (BTI) at 0.84 runs in the tighter-liquidity quartile — a thinner cushion against current liabilities for BTI.

BTI

Food, Beverage & Tobacco industry group

0.84

Max: 4.01
Q3: 2.35
Median: 1.53
Q1: 1.02
BTI: 0.84
Min: 0.33

DEO

Food, Beverage & Tobacco industry group

1.60

Max: 4.01
Q3: 2.35
DEO: 1.60
Median: 1.53
Q1: 1.02
Min: 0.33

British American Tobacco (BTI) vs. Diageo (DEO): A comparison of their current ratio against the Food, Beverage & Tobacco industry group benchmark.

Debt / Equity (MRQ)

British American Tobacco (BTI) at 0.72 carries an industry-typical debt-to-equity mix, while Diageo (DEO) at 1.71 uses more debt funding than most peers.

BTI

Food, Beverage & Tobacco industry group

0.72

Max: 2.19
Q3: 1.11
BTI: 0.72
Median: 0.68
Q1: 0.33
Min: 0.00

DEO

Food, Beverage & Tobacco industry group

1.71

Max: 2.19
DEO: 1.71
Q3: 1.11
Median: 0.68
Q1: 0.33
Min: 0.00

British American Tobacco (BTI) vs. Diageo (DEO): A comparison of their debt-to-equity ratio against the Food, Beverage & Tobacco industry group benchmark.

Financial Strength Metrics

Financial strength metrics for British American Tobacco (BTI) and Diageo (DEO)
Metric	BTI	DEO
Current Ratio (MRQ)	0.84	1.60
Debt / Equity (MRQ)	0.72	1.71
Net Debt / EBITDA	2.90	3.18

Dividends

Dividend Yield (TTM)

British American Tobacco (BTI) at 3.88% delivers top-quartile income for its industry, while Diageo (DEO) at 0.50% pays a more typical yield — both are credible income propositions, BTI the richer one.

BTI

Food, Beverage & Tobacco industry group

3.88%

Max: 9.38%
BTI: 3.88%
Q3: 3.77%
Median: 1.76%
Q1: 0.00%
Min: 0.00%

DEO

Food, Beverage & Tobacco industry group

0.50%

Max: 9.38%
Q3: 3.77%
Median: 1.76%
DEO: 0.50%
Q1: 0.00%
Min: 0.00%

British American Tobacco (BTI) vs. Diageo (DEO): A comparison of their dividend yield against the Food, Beverage & Tobacco industry group benchmark.

Dividend Payout Ratio (TTM)

Diageo (DEO) reports payout ratio above 100% at 106.52%, meaning dividends exceeded current-period earnings and sustainability needs extra context. Meanwhile British American Tobacco (BTI) reports 83.97%, ranking against industry peers normally.

BTI

Food, Beverage & Tobacco industry group

83.97%

Max: 199.19%
BTI: 83.97%
Q3: 81.03%
Median: 41.52%
Q1: 0.00%
Min: 0.00%

DEO

Food, Beverage & Tobacco industry group

106.52%

Max: 199.19%
DEO: 106.52%
Q3: 81.03%
Median: 41.52%
Q1: 0.00%
Min: 0.00%

British American Tobacco (BTI) vs. Diageo (DEO): A comparison of their payout ratio against the Food, Beverage & Tobacco industry group benchmark.

Dividend Metrics

Dividend metrics for British American Tobacco (BTI) and Diageo (DEO)
Metric	BTI	DEO
Dividend Yield (TTM)	3.88%	0.50%
Dividend Payout Ratio (TTM)	83.97%	106.52%

Valuation

P/E Ratio (TTM)

British American Tobacco (BTI) at 15.61 is near its industry’s usual P/E ratio, while Diageo (DEO) at 31.97 sits in the richer quartile — DEO needs stronger growth or earnings quality to justify the premium.

BTI

Food, Beverage & Tobacco industry group

15.61

Max: 52.52
Q3: 30.78
Median: 18.76
BTI: 15.61
Q1: 12.77
Min: 4.72

DEO

Food, Beverage & Tobacco industry group

31.97

Max: 52.52
DEO: 31.97
Q3: 30.78
Median: 18.76
Q1: 12.77
Min: 4.72

British American Tobacco (BTI) vs. Diageo (DEO): A comparison of their P/E ratio against the Food, Beverage & Tobacco industry group benchmark.

P/S Ratio (TTM)

Both look expensive on sales: Diageo (DEO) at 2.83 sits in the upper P/S ratio quartile, and British American Tobacco (BTI) at 5.08 prices even higher, above its industry range.

BTI

Food, Beverage & Tobacco industry group

5.08

BTI: 5.08
Max: 4.64
Q3: 2.27
Median: 1.17
Q1: 0.52
Min: 0.00

DEO

Food, Beverage & Tobacco industry group

2.83

Max: 4.64
DEO: 2.83
Q3: 2.27
Median: 1.17
Q1: 0.52
Min: 0.00

British American Tobacco (BTI) vs. Diageo (DEO): A comparison of their P/S ratio against the Food, Beverage & Tobacco industry group benchmark.

P/B Ratio (MRQ)

Measured against book value, both British American Tobacco (BTI) at 10.59 and Diageo (DEO) at 91.95 look expensive — each P/B ratio sits above its industry’s benchmark range.

BTI

Food, Beverage & Tobacco industry group

10.59

BTI: 10.59
Max: 6.35
Q3: 3.07
Median: 1.58
Q1: 0.82
Min: 0.00

DEO

Food, Beverage & Tobacco industry group

91.95

DEO: 91.95
Max: 6.35
Q3: 3.07
Median: 1.58
Q1: 0.82
Min: 0.00

British American Tobacco (BTI) vs. Diageo (DEO): A comparison of their P/B ratio against the Food, Beverage & Tobacco industry group benchmark.

Valuation Metrics

Valuation metrics for British American Tobacco (BTI) and Diageo (DEO)
Metric	BTI	DEO
P/E Ratio (TTM)	15.61	31.97
P/S Ratio (TTM)	5.08	2.83
P/B Ratio (MRQ)	10.59	91.95
Free Cash Flow Yield (TTM)	2.69%	4.62%