BTI vs. MO: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at BTI and MO, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
BTI’s market capitalization stands at 112.91 billion USD, while MO’s is 97.73 billion USD, indicating their market valuations are broadly comparable.
MO carries a higher beta at 0.64, indicating it’s more sensitive to market moves, while BTI (beta: 0.15) exhibits greater stability.
BTI trades as an American Depositary Receipt (ADR), offering U.S. investors a convenient way to access its foreign-listed shares. In contrast, MO is a standard domestic listing.
| Symbol | BTI | MO |
|---|---|---|
| Company Name | British American Tobacco p.l.c. | Altria Group, Inc. |
| Country | GB | US |
| Sector | Consumer Defensive | Consumer Defensive |
| Industry | Tobacco | Tobacco |
| CEO | Tadeu Luiz Marroco | William F. Gifford Jr. |
| Price | 51.59 USD | 58.02 USD |
| Market Cap | 112.91 billion USD | 97.73 billion USD |
| Beta | 0.15 | 0.64 |
| Exchange | NYSE | NYSE |
| IPO Date | April 14, 1980 | July 1, 1985 |
| ADR | Yes | No |
Historical Performance
This chart compares the performance of BTI and MO by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period.
Data is adjusted for dividends and splits.
Profitability
Return on Equity
BTI
5.87%
Tobacco Industry
- Max
- 22.42%
- Q3
- 6.25%
- Median
- 4.04%
- Q1
- -111.21%
- Min
- -150.20%
BTI’s Return on Equity of 5.87% is on par with the norm for the Tobacco industry, indicating its profitability relative to shareholder equity is typical for the sector.
MO
-333.94%
Tobacco Industry
- Max
- 22.42%
- Q3
- 6.25%
- Median
- 4.04%
- Q1
- -111.21%
- Min
- -150.20%
MO has a negative Return on Equity of -333.94%. This indicates the company is generating a loss for its shareholders, which can be a result of unprofitability or negative shareholder equity and is often a sign of financial distress.
Return on Invested Capital
BTI
3.21%
Tobacco Industry
- Max
- 30.25%
- Q3
- 17.79%
- Median
- 6.37%
- Q1
- 1.66%
- Min
- 0.12%
BTI’s Return on Invested Capital of 3.21% is in line with the norm for the Tobacco industry, reflecting a standard level of efficiency in generating profits from its capital base.
MO
30.25%
Tobacco Industry
- Max
- 30.25%
- Q3
- 17.79%
- Median
- 6.37%
- Q1
- 1.66%
- Min
- 0.12%
In the upper quartile for the Tobacco industry, MO’s Return on Invested Capital of 30.25% signifies a highly effective use of its capital to generate profits when compared to its peers.
Net Profit Margin
BTI
11.78%
Tobacco Industry
- Max
- 23.93%
- Q3
- 21.88%
- Median
- 11.78%
- Q1
- 6.14%
- Min
- 3.22%
BTI’s Net Profit Margin of 11.78% is aligned with the median group of its peers in the Tobacco industry. This indicates its ability to convert revenue into profit is typical for the sector.
MO
50.44%
Tobacco Industry
- Max
- 23.93%
- Q3
- 21.88%
- Median
- 11.78%
- Q1
- 6.14%
- Min
- 3.22%
MO’s Net Profit Margin of 50.44% is exceptionally high, placing it well beyond the typical range for the Tobacco industry. This demonstrates outstanding operational efficiency and a strong competitive advantage in converting revenue into profit.
Operating Profit Margin
BTI
14.55%
Tobacco Industry
- Max
- 51.15%
- Q3
- 27.45%
- Median
- 14.55%
- Q1
- 4.39%
- Min
- 0.82%
BTI’s Operating Profit Margin of 14.55% is around the midpoint for the Tobacco industry, indicating that its efficiency in managing core business operations is typical for the sector.
MO
51.15%
Tobacco Industry
- Max
- 51.15%
- Q3
- 27.45%
- Median
- 14.55%
- Q1
- 4.39%
- Min
- 0.82%
An Operating Profit Margin of 51.15% places MO in the upper quartile for the Tobacco industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
Profitability at a Glance
| Symbol | BTI | MO |
|---|---|---|
| Return on Equity (TTM) | 5.87% | -333.94% |
| Return on Assets (TTM) | 2.56% | 28.56% |
| Return on Invested Capital (TTM) | 3.21% | 30.25% |
| Net Profit Margin (TTM) | 11.78% | 50.44% |
| Operating Profit Margin (TTM) | 14.55% | 51.15% |
| Gross Profit Margin (TTM) | 74.71% | 70.81% |
Financial Strength
Current Ratio
BTI
0.76
Tobacco Industry
- Max
- 4.42
- Q3
- 3.65
- Median
- 2.25
- Q1
- 0.78
- Min
- 0.57
BTI’s Current Ratio of 0.76 falls into the lower quartile for the Tobacco industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
MO
0.57
Tobacco Industry
- Max
- 4.42
- Q3
- 3.65
- Median
- 2.25
- Q1
- 0.78
- Min
- 0.57
MO’s Current Ratio of 0.57 falls into the lower quartile for the Tobacco industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
Debt-to-Equity Ratio
BTI
0.74
Tobacco Industry
- Max
- 1.48
- Q3
- 0.76
- Median
- 0.74
- Q1
- 0.03
- Min
- 0.01
BTI’s Debt-to-Equity Ratio of 0.74 is typical for the Tobacco industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
MO
-7.42
Tobacco Industry
- Max
- 1.48
- Q3
- 0.76
- Median
- 0.74
- Q1
- 0.03
- Min
- 0.01
MO has a Debt-to-Equity Ratio of -7.42, which indicates negative shareholder equity where liabilities exceed assets. This is a critical sign of financial distress.
Interest Coverage Ratio
BTI
1.75
Tobacco Industry
- Max
- 9.53
- Q3
- 8.30
- Median
- 4.34
- Q1
- 2.04
- Min
- -2.25
In the lower quartile for the Tobacco industry, BTI’s Interest Coverage Ratio of 1.75 indicates a tighter cushion for servicing debt, suggesting less financial flexibility than many of its competitors.
MO
9.15
Tobacco Industry
- Max
- 9.53
- Q3
- 8.30
- Median
- 4.34
- Q1
- 2.04
- Min
- -2.25
MO’s Interest Coverage Ratio of 9.15 is in the upper quartile for the Tobacco industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.
Financial Strength at a Glance
| Symbol | BTI | MO |
|---|---|---|
| Current Ratio (TTM) | 0.76 | 0.57 |
| Quick Ratio (TTM) | 0.52 | 0.47 |
| Debt-to-Equity Ratio (TTM) | 0.74 | -7.42 |
| Debt-to-Asset Ratio (TTM) | 0.31 | 0.73 |
| Net Debt-to-EBITDA Ratio (TTM) | 6.94 | 1.52 |
| Interest Coverage Ratio (TTM) | 1.75 | 9.15 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for BTI and MO. These metrics are based on the companies’ annual financial reports.
Revenue Growth
Earnings Per Share (EPS) Growth
Free Cash Flow Growth
Dividend
Dividend Yield
BTI
7.78%
Tobacco Industry
- Max
- 6.94%
- Q3
- 6.23%
- Median
- 2.98%
- Q1
- 0.37%
- Min
- 0.00%
BTI’s Dividend Yield of 7.78% is exceptionally high, placing it well above the typical range for the Tobacco industry. While this may seem attractive, an unusually high yield can sometimes be a warning sign, reflecting a falling stock price or market concerns about the dividend’s sustainability.
MO
7.03%
Tobacco Industry
- Max
- 6.94%
- Q3
- 6.23%
- Median
- 2.98%
- Q1
- 0.37%
- Min
- 0.00%
MO’s Dividend Yield of 7.03% is exceptionally high, placing it well above the typical range for the Tobacco industry. While this may seem attractive, an unusually high yield can sometimes be a warning sign, reflecting a falling stock price or market concerns about the dividend’s sustainability.
Dividend Payout Ratio
BTI
171.09%
Tobacco Industry
- Max
- 171.09%
- Q3
- 98.77%
- Median
- 67.00%
- Q1
- 13.01%
- Min
- 0.00%
BTI’s Dividend Payout Ratio of 171.09% is above 100%. This means the company is paying out more in dividends than it earned, a practice that is often unsustainable and could indicate a risk to future dividend stability.
MO
67.00%
Tobacco Industry
- Max
- 171.09%
- Q3
- 98.77%
- Median
- 67.00%
- Q1
- 13.01%
- Min
- 0.00%
MO’s Dividend Payout Ratio of 67.00% is within the typical range for the Tobacco industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
Dividend at a Glance
| Symbol | BTI | MO |
|---|---|---|
| Dividend Yield (TTM) | 7.78% | 7.03% |
| Dividend Payout Ratio (TTM) | 171.09% | 67.00% |
Valuation
Price-to-Earnings Ratio
BTI
27.55
Tobacco Industry
- Max
- 37.02
- Q3
- 31.70
- Median
- 27.58
- Q1
- 17.76
- Min
- 9.72
BTI’s P/E Ratio of 27.55 is within the middle range for the Tobacco industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
MO
9.60
Tobacco Industry
- Max
- 37.02
- Q3
- 31.70
- Median
- 27.58
- Q1
- 17.76
- Min
- 9.72
MO’s P/E Ratio of 9.60 is below the typical range for the Tobacco industry. This may indicate that the stock is potentially undervalued, or it could reflect market concerns about the company’s future prospects.
Forward P/E to Growth Ratio
BTI
3.70
Tobacco Industry
- Max
- 6.56
- Q3
- 4.77
- Median
- 3.75
- Q1
- 3.29
- Min
- 3.17
The Forward PEG Ratio is often not a primary valuation metric in the Tobacco industry.
MO
3.14
Tobacco Industry
- Max
- 6.56
- Q3
- 4.77
- Median
- 3.75
- Q1
- 3.29
- Min
- 3.17
The Forward PEG Ratio is often not a primary valuation metric in the Tobacco industry.
Price-to-Sales Ratio
BTI
3.23
Tobacco Industry
- Max
- 7.35
- Q3
- 7.29
- Median
- 4.89
- Q1
- 2.91
- Min
- 0.49
BTI’s P/S Ratio of 3.23 aligns with the market consensus for the Tobacco industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
MO
4.83
Tobacco Industry
- Max
- 7.35
- Q3
- 7.29
- Median
- 4.89
- Q1
- 2.91
- Min
- 0.49
MO’s P/S Ratio of 4.83 aligns with the market consensus for the Tobacco industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
Price-to-Book Ratio
BTI
1.69
Tobacco Industry
- Max
- 1.61
- Q3
- 1.61
- Median
- 1.52
- Q1
- 1.20
- Min
- 1.00
The P/B Ratio is often not a primary valuation metric for the Tobacco industry.
MO
-27.94
Tobacco Industry
- Max
- 1.61
- Q3
- 1.61
- Median
- 1.52
- Q1
- 1.20
- Min
- 1.00
The P/B Ratio is often not a primary valuation metric for the Tobacco industry.
Valuation at a Glance
| Symbol | BTI | MO |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 27.55 | 9.60 |
| Forward PEG Ratio (TTM) | 3.70 | 3.14 |
| Price-to-Sales Ratio (P/S, TTM) | 3.23 | 4.83 |
| Price-to-Book Ratio (P/B, TTM) | 1.69 | -27.94 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 9.35 | 11.56 |
| EV-to-EBITDA (TTM) | 25.22 | 8.49 |
| EV-to-Sales (TTM) | 4.45 | 5.88 |