BTI vs. PEP: British American Tobacco vs. PepsiCo Stock Comparison

July 2, 2026

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

PepsiCo (PEP) trades as ordinary local shares, while British American Tobacco (BTI) trades as an ADR — compare with FX exposure, depositary-program fees, and dividend-withholding-tax differences in mind.

Company profile comparison for British American Tobacco (BTI) and PepsiCo (PEP)
Profile Item	BTI	PEP
Name	British American Tobacco p.l.c. ADR	PepsiCo, Inc.
Country/Region	United Kingdom	United States
GICS Sector	Consumer Staples	Consumer Staples
GICS Industry Group	Food, Beverage & Tobacco	Food, Beverage & Tobacco
GICS Industry	Tobacco	Beverages
GICS Sub-Industry	Tobacco	Soft Drinks & Non-alcoholic Beverages
Market Capitalization	133.35 billion USD	185.08 billion USD
Currency	USD	USD
Exchange	NYSE	Nasdaq
Listing Date	April 14, 1980	June 1, 1972
Security Type	ADR	Common Stock

Price Performance

Cumulative Growth

BTI

PEP

British American Tobacco (BTI) vs. PepsiCo (PEP): Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

Loading price history…

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

Performance Metrics

Price performance metrics for British American Tobacco (BTI) and PepsiCo (PEP)
Metric	BTI	PEP
Total Return (1Y)	36.09%	6.60%

Risk Profile

Drawdown History

BTI

PEP

British American Tobacco (BTI) vs. PepsiCo (PEP): Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Risk Metrics

Risk profile metrics for British American Tobacco (BTI) and PepsiCo (PEP)
Metric	BTI	PEP
Volatility (1Y, Annualized)	23.35%	21.95%
Beta (5Y)	0.31	0.36
Avg. Volume (3M)	4.26M	7.54M

Risk-Adjusted Performance

Risk-Return Positioning

BTI and PEP 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.

Profitability

ROE (TTM)

PepsiCo (PEP) at 43.88% clears its industry range for ROE, a sharper capital-efficiency signal than British American Tobacco (BTI) at 15.82%, which is closer to a typical peer reading.

BTI

Food, Beverage & Tobacco industry group

15.82%

Max: 37.95%
Q3: 18.99%
BTI: 15.82%
Median: 14.93%
Q1: 3.88%
Min: -18.08%

PEP

Food, Beverage & Tobacco industry group

43.88%

PEP: 43.88%
Max: 37.95%
Q3: 18.99%
Median: 14.93%
Q1: 3.88%
Min: -18.08%

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

Net Margin (TTM)

British American Tobacco (BTI) at 30.32% converts revenue to bottom-line profit above its industry’s benchmark range, while PepsiCo (PEP) at 9.15% keeps roughly the typical share for its industry.

BTI

Food, Beverage & Tobacco industry group

30.32%

BTI: 30.32%
Max: 27.80%
Q3: 12.29%
Median: 6.11%
Q1: 1.28%
Min: -7.46%

PEP

Food, Beverage & Tobacco industry group

9.15%

Max: 27.80%
Q3: 12.29%
PEP: 9.15%
Median: 6.11%
Q1: 1.28%
Min: -7.46%

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

Operating Margin (TTM)

British American Tobacco (BTI) at 34.58% operates in the top operating margin quartile, ahead of PepsiCo (PEP) at 16.96%, which runs around its industry’s norm.

BTI

Food, Beverage & Tobacco industry group

34.58%

Max: 36.04%
BTI: 34.58%
Q3: 17.68%
Median: 10.44%
Q1: 3.65%
Min: -7.33%

PEP

Food, Beverage & Tobacco industry group

16.96%

Max: 36.04%
Q3: 17.68%
PEP: 16.96%
Median: 10.44%
Q1: 3.65%
Min: -7.33%

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

Profitability Metrics

Profitability metrics for British American Tobacco (BTI) and PepsiCo (PEP)
Metric	BTI	PEP
ROE (TTM)	15.82%	43.88%
ROA (TTM)	5.34%	9.09%
Net Margin (TTM)	30.32%	9.15%
Operating Margin (TTM)	34.58%	16.96%
Gross Margin (TTM)	82.65%	54.38%

Growth

Revenue Growth

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

Revenue Growth Metrics

Revenue growth metrics for British American Tobacco (BTI) and PepsiCo (PEP)
Metric	BTI	PEP
Revenue Growth (YoY)	-0.99%	2.25%
Revenue Growth (3Y CAGR)	-2.53%	2.83%

EPS Growth

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

EPS Growth Metrics

EPS growth metrics for British American Tobacco (BTI) and PepsiCo (PEP)
Metric	BTI	PEP
EPS Growth (YoY)	156.69%	-13.67%
EPS Growth (3Y CAGR)	6.15%	-2.23%

Financial Strength

Current Ratio (MRQ)

Both British American Tobacco (BTI) at 0.87 and PepsiCo (PEP) at 0.90 run current ratio in the tighter-liquidity quartile of industry peers, leaving thinner cushions against current liabilities than typical competitors.

BTI

Food, Beverage & Tobacco industry group

0.87

Max: 5.06
Q3: 2.66
Median: 1.60
Q1: 1.05
BTI: 0.87
Min: 0.54

PEP

Food, Beverage & Tobacco industry group

0.90

Max: 5.06
Q3: 2.66
Median: 1.60
Q1: 1.05
PEP: 0.90
Min: 0.54

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

Debt / Equity (MRQ)

British American Tobacco (BTI) at 0.73 is near its industry mid-range for debt-to-equity ratio, while PepsiCo (PEP) at 2.45 sits above its benchmark range, pointing to a heavier debt load relative to equity.

BTI

Food, Beverage & Tobacco industry group

0.73

Max: 2.20
Q3: 1.12
BTI: 0.73
Median: 0.70
Q1: 0.35
Min: 0.00

PEP

Food, Beverage & Tobacco industry group

2.45

PEP: 2.45
Max: 2.20
Q3: 1.12
Median: 0.70
Q1: 0.35
Min: 0.00

British American Tobacco (BTI) vs. PepsiCo (PEP): 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 PepsiCo (PEP)
Metric	BTI	PEP
Current Ratio (MRQ)	0.87	0.90
Debt / Equity (MRQ)	0.73	2.45
Net Debt / EBITDA	2.66	2.24

Dividends

Dividend Yield (TTM)

Both British American Tobacco (BTI) at 3.91% and PepsiCo (PEP) at 4.10% pay solid, industry-typical yields, sitting squarely within their peers’ usual range.

BTI

Food, Beverage & Tobacco industry group

3.91%

Max: 10.01%
Q3: 4.23%
BTI: 3.91%
Median: 2.71%
Q1: 0.00%
Min: 0.00%

PEP

Food, Beverage & Tobacco industry group

4.10%

Max: 10.01%
Q3: 4.23%
PEP: 4.10%
Median: 2.71%
Q1: 0.00%
Min: 0.00%

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

Dividend Payout Ratio (TTM)

British American Tobacco (BTI) at 68.73% pays out a band-typical share of earnings, while PepsiCo (PEP) at 89.32% distributes more than its industry norm — less retained, thinner cover.

BTI

Food, Beverage & Tobacco industry group

68.73%

Max: 159.06%
Q3: 86.47%
BTI: 68.73%
Median: 44.62%
Q1: 0.00%
Min: 0.00%

PEP

Food, Beverage & Tobacco industry group

89.32%

Max: 159.06%
PEP: 89.32%
Q3: 86.47%
Median: 44.62%
Q1: 0.00%
Min: 0.00%

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

Dividend Metrics

Dividend metrics for British American Tobacco (BTI) and PepsiCo (PEP)
Metric	BTI	PEP
Dividend Yield (TTM)	3.91%	4.10%
Dividend Payout Ratio (TTM)	68.73%	89.32%

Valuation

P/E Ratio (TTM)

Both British American Tobacco (BTI) at 13.40 and PepsiCo (PEP) at 21.29 land around their industries’ usual P/E ratio levels — neither is getting a clear earnings-multiple discount or premium versus peers.

BTI

Food, Beverage & Tobacco industry group

13.40

Max: 47.93
Q3: 29.08
Median: 18.25
BTI: 13.40
Q1: 11.32
Min: 5.61

PEP

Food, Beverage & Tobacco industry group

21.29

Max: 47.93
Q3: 29.08
PEP: 21.29
Median: 18.25
Q1: 11.32
Min: 5.61

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

P/S Ratio (TTM)

PepsiCo (PEP) at 1.94 is priced about in line with its industry on P/S ratio, while British American Tobacco (BTI) at 5.21 sits in the pricier quartile — BTI costs more per dollar of sales.

BTI

Food, Beverage & Tobacco industry group

5.21

BTI: 5.21
Max: 5.21
Q3: 2.44
Median: 0.95
Q1: 0.53
Min: 0.00

PEP

Food, Beverage & Tobacco industry group

1.94

Max: 5.21
Q3: 2.44
PEP: 1.94
Median: 0.95
Q1: 0.53
Min: 0.00

British American Tobacco (BTI) vs. PepsiCo (PEP): 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 11.04 and PepsiCo (PEP) at 8.66 look expensive — each P/B ratio sits above its industry’s benchmark range.

BTI

Food, Beverage & Tobacco industry group

11.04

BTI: 11.04
Max: 6.01
Q3: 3.17
Median: 1.68
Q1: 0.90
Min: 0.00

PEP

Food, Beverage & Tobacco industry group

8.66

PEP: 8.66
Max: 6.01
Q3: 3.17
Median: 1.68
Q1: 0.90
Min: 0.00

British American Tobacco (BTI) vs. PepsiCo (PEP): 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 PepsiCo (PEP)
Metric	BTI	PEP
P/E Ratio (TTM)	13.40	21.29
P/S Ratio (TTM)	5.21	1.94
P/B Ratio (MRQ)	11.04	8.66
Free Cash Flow Yield (TTM)	2.25%	4.73%