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

September 27, 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 plc 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	119.74 billion USD	175.71 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

GSPC

British American Tobacco (BTI) vs. PepsiCo (PEP), 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 PepsiCo (PEP). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for British American Tobacco (BTI) and PepsiCo (PEP). 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 PepsiCo (PEP)
Metric	BTI	PEP
Total Return (1Y)	12.37%	-4.34%
Total Return (3Y, Annualized)	29.37%	-6.32%
Total Return (5Y, Annualized)	17.37%	-0.38%

Risk Profile

Drawdown History

BTI

PEP

GSPC

British American Tobacco (BTI) vs. PepsiCo (PEP), 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 PepsiCo (PEP). 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 PepsiCo (PEP)
Metric	BTI	PEP
Volatility (1Y, Annualized)	25.07%	21.12%
Beta (5Y)	0.28	0.35
Max Drawdown (5Y)	-29.84%	-30.32%
Avg. Volume (3M)	4.63M	8.39M

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.

Risk-Adjusted Metrics

Risk-adjusted metrics for British American Tobacco (BTI) and PepsiCo (PEP)
Metric	BTI	PEP
Sharpe Ratio (1Y)	0.31	-0.42
Sortino Ratio (1Y)	0.47	-0.62

Profitability

ROE (TTM)

PepsiCo (PEP) at 51.51% clears its industry range for ROE, a sharper capital-efficiency signal than British American Tobacco (BTI) at 13.42%, which is closer to a typical peer reading.

BTI

Food, Beverage & Tobacco industry group

13.42%

Max: 32.81%
Q3: 17.32%
BTI: 13.42%
Median: 11.39%
Q1: 3.81%
Min: -16.01%

PEP

Food, Beverage & Tobacco industry group

51.51%

PEP: 51.51%
Max: 32.81%
Q3: 17.32%
Median: 11.39%
Q1: 3.81%
Min: -16.01%

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 24.99% retains a top-quartile share of revenue as profit, ahead of PepsiCo (PEP) at 10.79%, which keeps about the industry-typical share.

BTI

Food, Beverage & Tobacco industry group

24.99%

Max: 25.56%
BTI: 24.99%
Q3: 11.56%
Median: 5.27%
Q1: 1.16%
Min: -14.28%

PEP

Food, Beverage & Tobacco industry group

10.79%

Max: 25.56%
Q3: 11.56%
PEP: 10.79%
Median: 5.27%
Q1: 1.16%
Min: -14.28%

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 34.91% operates in the top operating margin quartile, ahead of PepsiCo (PEP) at 16.84%, which runs around its industry’s norm.

BTI

Food, Beverage & Tobacco industry group

34.91%

Max: 35.93%
BTI: 34.91%
Q3: 17.21%
Median: 11.06%
Q1: 3.97%
Min: -11.04%

PEP

Food, Beverage & Tobacco industry group

16.84%

Max: 35.93%
Q3: 17.21%
PEP: 16.84%
Median: 11.06%
Q1: 3.97%
Min: -11.04%

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)	13.42%	51.51%
ROA (TTM)	5.12%	8.93%
Net Margin (TTM)	24.99%	10.79%
Operating Margin (TTM)	34.91%	16.84%
Gross Margin (TTM)	82.72%	54.17%

Growth

Revenue Growth

Both British American Tobacco (BTI) at -0.99% and PepsiCo (PEP) at 2.25% land near their industries' usual revenue growth ranges, so top-line momentum looks broadly in line with peers on both sides.

British American Tobacco (BTI) vs. PepsiCo (PEP): 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 PepsiCo (PEP) at -13.67%, which is closer to a typical peer reading.

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

Growth Metrics

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 (YoY)	156.69%	-13.67%
EPS Growth (3Y CAGR)	6.15%	-2.23%

Financial Strength

Current Ratio (MRQ)

Both British American Tobacco (BTI) at 0.84 and PepsiCo (PEP) at 0.93 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

0.84

Max: 4.01
Q3: 2.38
Median: 1.50
Q1: 0.99
BTI: 0.84
Min: 0.43

PEP

Food, Beverage & Tobacco industry group

0.93

Max: 4.01
Q3: 2.38
Median: 1.50
Q1: 0.99
PEP: 0.93
Min: 0.43

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 0.72 carries an industry-typical debt-to-equity mix, while PepsiCo (PEP) at 2.39 uses more debt funding than most peers.

BTI

Food, Beverage & Tobacco industry group

0.72

Max: 2.39
Q3: 1.16
BTI: 0.72
Median: 0.71
Q1: 0.32
Min: 0.00

PEP

Food, Beverage & Tobacco industry group

2.39

PEP: 2.39
Max: 2.39
Q3: 1.16
Median: 0.71
Q1: 0.32
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)	0.84	0.93
Debt / Equity (MRQ)	0.72	2.39
Net Debt / EBITDA	2.90	2.25

Dividends

Dividend Yield (TTM)

Both British American Tobacco (BTI) at 4.37% and PepsiCo (PEP) at 4.49% offer top-quartile dividend income relative to share price within their industries.

BTI

Food, Beverage & Tobacco industry group

4.37%

Max: 9.54%
BTI: 4.37%
Q3: 3.92%
Median: 2.28%
Q1: 0.00%
Min: 0.00%

PEP

Food, Beverage & Tobacco industry group

4.49%

Max: 9.54%
PEP: 4.49%
Q3: 3.92%
Median: 2.28%
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)

PepsiCo (PEP) at 75.33% pays out a band-typical share of earnings, while British American Tobacco (BTI) at 84.51% distributes more than its industry norm — less retained, thinner cover.

BTI

Food, Beverage & Tobacco industry group

84.51%

Max: 188.31%
BTI: 84.51%
Q3: 79.92%
Median: 45.95%
Q1: 0.00%
Min: 0.00%

PEP

Food, Beverage & Tobacco industry group

75.33%

Max: 188.31%
Q3: 79.92%
PEP: 75.33%
Median: 45.95%
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)	4.37%	4.49%
Dividend Payout Ratio (TTM)	84.51%	75.33%

Valuation

P/E Ratio (TTM)

Both British American Tobacco (BTI) at 14.34 and PepsiCo (PEP) at 16.88 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

14.34

Max: 43.25
Q3: 28.39
Median: 17.58
BTI: 14.34
Q1: 13.87
Min: 5.89

PEP

Food, Beverage & Tobacco industry group

16.88

Max: 43.25
Q3: 28.39
Median: 17.58
PEP: 16.88
Q1: 13.87
Min: 5.89

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 1.81 prices around its industry’s typical P/S ratio, while British American Tobacco (BTI) at 4.65 clears its benchmark range — BTI looks notably rich on sales.

BTI

Food, Beverage & Tobacco industry group

4.65

BTI: 4.65
Max: 3.89
Q3: 2.15
Median: 0.95
Q1: 0.49
Min: 0.00

PEP

Food, Beverage & Tobacco industry group

1.81

Max: 3.89
Q3: 2.15
PEP: 1.81
Median: 0.95
Q1: 0.49
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 9.79 and PepsiCo (PEP) at 7.95 look expensive — each P/B ratio sits above its industry’s benchmark range.

BTI

Food, Beverage & Tobacco industry group

9.79

BTI: 9.79
Max: 5.91
Q3: 2.97
Median: 1.65
Q1: 0.92
Min: 0.00

PEP

Food, Beverage & Tobacco industry group

7.95

PEP: 7.95
Max: 5.91
Q3: 2.97
Median: 1.65
Q1: 0.92
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)	14.34	16.88
P/S Ratio (TTM)	4.65	1.81
P/B Ratio (MRQ)	9.79	7.95
Free Cash Flow Yield (TTM)	2.94%	4.46%