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BTI vs. PM: British American Tobacco vs. Philip Morris Stock Comparison

How do British American Tobacco (BTI) and Philip Morris (PM) 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 Philip Morris (PM) are both classified in the Tobacco sub-industry within the broader Tobacco industry, placing them in the closest GICS peer bucket.

Philip Morris (PM) 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 Philip Morris (PM)
Profile ItemBTIPM
NameBritish American Tobacco p.l.c. ADRPhilip Morris International Inc.
Country/RegionUnited KingdomUnited States
GICS SectorConsumer StaplesConsumer Staples
GICS Industry GroupFood, Beverage & TobaccoFood, Beverage & Tobacco
GICS IndustryTobaccoTobacco
GICS Sub-IndustryTobaccoTobacco
Market Capitalization123.00 billion USD296.74 billion USD
CurrencyUSDUSD
ExchangeNYSENYSE
Listing DateApril 14, 1980March 17, 2008
Security TypeADRCommon Stock

Price Performance

Cumulative Growth

BTI
PM
GSPC
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British American Tobacco (BTI) vs. Philip Morris (PM), 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 Philip Morris (PM). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for British American Tobacco (BTI) and Philip Morris (PM). 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 Philip Morris (PM)
MetricBTIPM
Total Return (1Y)5.08%19.37%
Total Return (3Y, Annualized)30.21%31.21%
Total Return (5Y, Annualized)17.36%18.81%

Risk Profile

Drawdown History

BTI
PM
GSPC
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British American Tobacco (BTI) vs. Philip Morris (PM), 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 Philip Morris (PM). 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 Philip Morris (PM)
MetricBTIPM
Volatility (1Y, Annualized)25.11%27.98%
Beta (5Y)0.300.37
Max Drawdown (5Y)-29.84%-22.78%
Avg. Volume (3M)4.21M4.97M

Risk-Adjusted Performance

Risk-Return Positioning

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BTI and PM 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 Philip Morris (PM)
MetricBTIPM
Sharpe Ratio (1Y)0.040.55
Sortino Ratio (1Y)0.070.81

Profitability

ROE (TTM)

Capital efficiency shows on one side only: British American Tobacco (BTI) earns 13.42% on shareholders’ equity, ranked against its industry; Philip Morris (PM) has no ROE this period.

BTI

Food, Beverage & Tobacco industry group

13.42%

Max
34.02%
Q3
17.32%
BTI
13.42%
Median
12.17%
Q1
3.66%
Min
-16.01%

PM

Food, Beverage & Tobacco industry group

--

Max
34.02%
Q3
17.32%
Median
12.17%
Q1
3.66%
Min
-16.01%
PM
--
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British American Tobacco (BTI) vs. Philip Morris (PM): PM does not report ROE, so it has no value marker; BTI is benchmarked against the Food, Beverage & Tobacco industry group.

Net Margin (TTM)

For every dollar of sales, both British American Tobacco (BTI) at 24.99% and Philip Morris (PM) at 25.56% retain more as net profit than most peers, landing in the top net margin quartile of their industries.

BTI

Food, Beverage & Tobacco industry group

24.99%

Max
25.56%
BTI
24.99%
Q3
11.22%
Median
5.94%
Q1
1.08%
Min
-13.81%

PM

Food, Beverage & Tobacco industry group

25.56%

PM
25.56%
Max
25.56%
Q3
11.22%
Median
5.94%
Q1
1.08%
Min
-13.81%
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British American Tobacco (BTI) vs. Philip Morris (PM): A comparison of their net margin against the Food, Beverage & Tobacco industry group benchmark.

Operating Margin (TTM)

Philip Morris (PM) at 40.00% shows unusually strong operating efficiency — above its industry’s operating margin range — and British American Tobacco (BTI) at 34.91% also operates in the top quartile.

BTI

Food, Beverage & Tobacco industry group

34.91%

Max
35.93%
BTI
34.91%
Q3
17.10%
Median
11.30%
Q1
3.99%
Min
-11.04%

PM

Food, Beverage & Tobacco industry group

40.00%

PM
40.00%
Max
35.93%
Q3
17.10%
Median
11.30%
Q1
3.99%
Min
-11.04%
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British American Tobacco (BTI) vs. Philip Morris (PM): A comparison of their operating margin against the Food, Beverage & Tobacco industry group benchmark.

Profitability Metrics

Profitability metrics for British American Tobacco (BTI) and Philip Morris (PM)
MetricBTIPM
ROE (TTM)13.42%--
ROA (TTM)5.12%14.59%
Net Margin (TTM)24.99%25.56%
Operating Margin (TTM)34.91%40.00%
Gross Margin (TTM)82.72%67.48%

Growth

Revenue Growth

Philip Morris (PM) at 7.31% is around its peer norm for revenue growth, while British American Tobacco (BTI) at -0.99% drops into the bottom quartile, signaling weaker demand or pricing momentum.

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British American Tobacco (BTI) vs. Philip Morris (PM): A comparison of their Revenue Growth across different time periods.

EPS Growth

Both companies show strong earnings momentum, but British American Tobacco (BTI) at 156.69% is the standout with EPS growth above its industry range; Philip Morris (PM) at 60.26% also sits in the top quartile.

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British American Tobacco (BTI) vs. Philip Morris (PM): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for British American Tobacco (BTI) and Philip Morris (PM)
MetricBTIPM
Revenue Growth (YoY)-0.99%7.31%
Revenue Growth (3Y CAGR)-2.53%8.57%
EPS Growth (YoY)156.69%60.26%
EPS Growth (3Y CAGR)6.15%7.71%

Financial Strength

Current Ratio (MRQ)

Both British American Tobacco (BTI) at 0.84 and Philip Morris (PM) at 0.98 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
4.39
Q3
2.48
Median
1.47
Q1
1.00
BTI
0.84
Min
0.43

PM

Food, Beverage & Tobacco industry group

0.98

Max
4.39
Q3
2.48
Median
1.47
Q1
1.00
PM
0.98
Min
0.43
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British American Tobacco (BTI) vs. Philip Morris (PM): A comparison of their current ratio against the Food, Beverage & Tobacco industry group benchmark.

Debt / Equity (MRQ)

Only one side’s leverage can be read here: British American Tobacco (BTI) carries debt-to-equity ratio of 0.72 against its industry range, while Philip Morris (PM) reports no figure this period.

BTI

Food, Beverage & Tobacco industry group

0.72

Max
2.21
Q3
1.13
BTI
0.72
Median
0.71
Q1
0.31
Min
0.00

PM

Food, Beverage & Tobacco industry group

--

Max
2.21
Q3
1.13
Median
0.71
Q1
0.31
Min
0.00
PM
--
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British American Tobacco (BTI) vs. Philip Morris (PM): PM does not report debt-to-equity ratio, so it has no value marker; BTI is benchmarked against the Food, Beverage & Tobacco industry group.

Financial Strength Metrics

Financial strength metrics for British American Tobacco (BTI) and Philip Morris (PM)
MetricBTIPM
Current Ratio (MRQ)0.840.98
Debt / Equity (MRQ)0.72--
Net Debt / EBITDA2.902.39

Dividends

Dividend Yield (TTM)

British American Tobacco (BTI) at 4.27% delivers top-quartile income for its industry, while Philip Morris (PM) at 3.11% pays a more typical yield — both are credible income propositions, BTI the richer one.

BTI

Food, Beverage & Tobacco industry group

4.27%

Max
9.10%
BTI
4.27%
Q3
3.96%
Median
2.53%
Q1
0.00%
Min
0.00%

PM

Food, Beverage & Tobacco industry group

3.11%

Max
9.10%
Q3
3.96%
PM
3.11%
Median
2.53%
Q1
0.00%
Min
0.00%
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British American Tobacco (BTI) vs. Philip Morris (PM): A comparison of their dividend yield against the Food, Beverage & Tobacco industry group benchmark.

Dividend Payout Ratio (TTM)

Philip Morris (PM) at 80.73% pays out a band-typical share of earnings, while British American Tobacco (BTI) at 84.64% distributes more than its industry norm — less retained, thinner cover.

BTI

Food, Beverage & Tobacco industry group

84.64%

Max
169.01%
BTI
84.64%
Q3
81.71%
Median
46.29%
Q1
0.00%
Min
0.00%

PM

Food, Beverage & Tobacco industry group

80.73%

Max
169.01%
Q3
81.71%
PM
80.73%
Median
46.29%
Q1
0.00%
Min
0.00%
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British American Tobacco (BTI) vs. Philip Morris (PM): A comparison of their payout ratio against the Food, Beverage & Tobacco industry group benchmark.

Dividend Metrics

Dividend metrics for British American Tobacco (BTI) and Philip Morris (PM)
MetricBTIPM
Dividend Yield (TTM)4.27%3.11%
Dividend Payout Ratio (TTM)84.64%80.73%

Valuation

P/E Ratio (TTM)

Both British American Tobacco (BTI) at 14.52 and Philip Morris (PM) at 26.12 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

14.52

Max
43.35
Q3
30.96
Median
18.87
BTI
14.52
Q1
13.69
Min
5.48

PM

Food, Beverage & Tobacco industry group

26.12

Max
43.35
Q3
30.96
PM
26.12
Median
18.87
Q1
13.69
Min
5.48
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British American Tobacco (BTI) vs. Philip Morris (PM): A comparison of their P/E ratio against the Food, Beverage & Tobacco industry group benchmark.

P/S Ratio (TTM)

Both look expensive on sales: British American Tobacco (BTI) at 4.77 sits in the upper P/S ratio quartile, and Philip Morris (PM) at 6.97 prices even higher, above its industry range.

BTI

Food, Beverage & Tobacco industry group

4.77

BTI
4.77
Max
4.77
Q3
2.32
Median
1.10
Q1
0.56
Min
0.00

PM

Food, Beverage & Tobacco industry group

6.97

PM
6.97
Max
4.77
Q3
2.32
Median
1.10
Q1
0.56
Min
0.00
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British American Tobacco (BTI) vs. Philip Morris (PM): A comparison of their P/S ratio against the Food, Beverage & Tobacco industry group benchmark.

P/B Ratio (MRQ)

Philip Morris (PM) reports a negative P/B ratio of -34.57, meaning negative book equity — the multiple itself is not meaningful for valuation. Meanwhile British American Tobacco (BTI) reports 9.85, ranking against industry peers normally.

BTI

Food, Beverage & Tobacco industry group

9.85

BTI
9.85
Max
6.14
Q3
3.27
Median
1.77
Q1
0.96
Min
0.00

PM

Food, Beverage & Tobacco industry group

-34.57

Max
6.14
Q3
3.27
Median
1.77
Q1
0.96
Min
0.00
PM
-34.57
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British American Tobacco (BTI) vs. Philip Morris (PM): 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 Philip Morris (PM)
MetricBTIPM
P/E Ratio (TTM)14.5226.12
P/S Ratio (TTM)4.776.97
P/B Ratio (MRQ)9.85-34.57
Free Cash Flow Yield (TTM)2.87%3.27%