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BTI vs MO
Which Stock Would AI Choose? British American Tobacco (BTI) vs. Altria Group (MO) Stock Comparison
Key Takeaways
- BTI boasts a lower price-to-earnings (P/E) ratio of 12.2 compared to MO's 16.0, suggesting relatively better valuation.
- Both stocks deliver high dividend yields attractive to income investors, with MO at 6.4% and BTI at 5.8%.
- BTI has outperformed over the past year with a 44% total return, surpassing MO's 21%.
- MO leads year-to-date (YTD) performance at 16% versus BTI's 3%.
- Recent weeks show modest pullbacks for both amid sector pressures, but positive sentiment persists due to pricing power and defensive positioning.
- BTI's global diversification contrasts with MO's U.S.-centric focus, influencing growth drivers.
Introduction
British American Tobacco (BTI) and Altria Group (MO) stand as leading players in the tobacco industry, renowned for robust dividend payouts and defensive qualities amid market volatility. This stock comparison analyzes their recent performance, valuation metrics, and market positioning to aid income-oriented investors and traders evaluating relative opportunities in the consumer staples sector. With both facing regulatory headwinds yet benefiting from pricing discipline, understanding their contrasts in momentum and stability proves valuable in today's environment of shifting consumer trends and economic uncertainty.
BTI Overview and Recent Performance
British American Tobacco (BTI) is a multinational tobacco giant with brands like Lucky Strike and Vuse, operating in over 180 countries and emphasizing next-generation products alongside combustibles. Trading around $57 with a market capitalization exceeding $124 billion, BTI features a trailing P/E ratio of 12.2 and a dividend yield near 5.8%. In recent market activity, the stock has experienced modest cooling from highs near $63, reflecting broader tobacco sector pressures, yet it maintains strong one-year gains of about 44% driven by pricing power and resilient demand. Sentiment remains supported by analyst upgrades and highlights of its valuation appeal, positioning BTI favorably for income seekers despite volume declines in traditional cigarettes.
MO Overview and Recent Performance
Altria Group (MO), primarily U.S.-focused through Marlboro and oral nicotine products like on!, holds a market cap around $110 billion. The stock trades near $66, with a P/E of 16.0 and an elevated dividend yield of 6.4%. Recent weeks have seen a pullback of over 3% from February peaks, lagging some staples amid anticipation for quarterly earnings, though YTD returns stand at 16% bolstered by share buybacks and investments in growers. Positive developments, including capital return enhancements, have sustained defensive appeal, with performance influenced by steady smokeable volumes and growth in oral segments despite regulatory scrutiny.
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Head-to-Head Comparison
In business models, BTI's global footprint provides broader exposure to emerging markets and vaping growth, contrasting MO's concentrated U.S. dominance with strengths in oral nicotine pouches. Growth drivers differ: BTI leverages international diversification for revenue stability (TTM $25.6B), while MO ($20.1B TTM) emphasizes domestic pricing and buybacks. Recent momentum favors BTI over longer horizons but trails YTD; risk factors include shared regulatory pressures on combustibles, with MO facing U.S.-specific litigation. Sector exposure ties both to consumer staples' defensive traits, yet BTI's lower P/E signals undervaluation, trading off against MO's superior yield. Market sentiment tilts toward income reliability for both amid economic caution.
Tickeron AI Verdict
Tickeron’s AI models currently lean toward BTI based on superior one-year trend consistency (44% return), attractive valuation at a sub-13x P/E, and resilient global positioning amid recent stability. While MO offers a higher yield and YTD edge, BTI's momentum and pricing catalysts suggest higher probability of near-term outperformance in probabilistic assessments.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
To compare these two companies we present long-term analysis, their fundamental ratings and make comparative short-term technical analysis which are presented below. The conclusion is BTI is a Buy and MO is a Buy.
Long-Term Analysis
It is best to consider a long-term outlook for a ticker by using Fundamental Analysis (FA) ratings. The rating of 1 to 100, where 1 is best and 100 is worst, is divided into thirds. The first third (a green rating of 1-33) indicates that the ticker is undervalued; the second third (a grey number between 34 and 66) means that the ticker is valued fairly; and the last third (red number of 67 to 100) reflects that the ticker is undervalued. We use an FA Score to show how many ratings show the ticker to be undervalued (green) or overvalued (red).
BTI’s FA Score shows that 2 FA rating(s) are green whileMO’s FA Score has 5 green FA rating(s).
- BTI’s FA Score: 2 green, 3 red.
- MO’s FA Score: 5 green, 0 red.
Short-Term Analysis
It is best to consider a short-term outlook for a ticker by using Technical Analysis (TA) indicators. We use Odds of Success as the percentage of outcomes which confirm successful trade signals in the past.
If the Odds of Success (the likelihood of the continuation of a trend) for each indicator are greater than 50%, then the generated signal is confirmed. A green percentage from 90% to 51% indicates that the ticker is in a bullish trend. A red percentage from 90% - 51% indicates that the ticker is in a bearish trend. All grey percentages are below 50% and are considered not to confirm the trend signal.
BTI’s TA Score shows that 7 TA indicator(s) are bullish while MO’s TA Score has 4 bullish TA indicator(s).
- BTI’s TA Score: 7 bullish, 3 bearish.
- MO’s TA Score: 4 bullish, 3 bearish.
Price Growth
BTI (@Tobacco) experienced а -1.14% price change this week, while MO (@Tobacco) price change was -0.68% for the same time period.
The average weekly price growth across all stocks in the @Tobacco industry was -0.82%. For the same industry, the average monthly price growth was -9.42%, and the average quarterly price growth was -12.47%.
Reported Earning Dates
BTI is expected to report earnings on Jul 30, 2026.
MO is expected to report earnings on Jul 30, 2026.
Industries' Descriptions
@Tobacco (-0.82% weekly)The industry is engaged in the growth, preparation for sale, advertisement, and distribution of tobacco and tobacco-related products like cigarettes. In 2017, tobacco companies spent an estimated $9.36 billion marketing cigarettes and smokeless tobacco in the U.S. – an amount that translates to more than $25 million each day (according to a CDC report). Philip Morris International Inc., Altria Group Inc., and British American Tobacco plc are some major cigar makers. In recent times, vaping or the use of e-cigarette (does not burn tobacco) is gaining momentum – several established cigarette makers are trying to expand their footprint in this new market.
| BTI | MO | BTI / MO | |
| Capitalization | 124B | 121B | 102% |
| EBITDA | 14.1B | 12B | 118% |
| Gain YTD | 10.682 | 30.132 | 35% |
| P/E Ratio | 12.75 | 14.51 | 88% |
| Revenue | 25.6B | 20.4B | 125% |
| Total Cash | N/A | N/A | - |
| Total Debt | N/A | 24.6B | - |
BTI | MO | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 50 | 50 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 9 Undervalued | 15 Undervalued | |
PROFIT vs RISK RATING 1..100 | 8 | 6 | |
SMR RATING 1..100 | 98 | 6 | |
PRICE GROWTH RATING 1..100 | 48 | 17 | |
P/E GROWTH RATING 1..100 | 93 | 24 | |
SEASONALITY SCORE 1..100 | 50 | 85 |
Tickeron ratings are formulated such that a rating of 1 designates the most successful stocks in a given industry, while a rating of 100 points to the least successful stocks for that industry.
BTI's Valuation (9) in the Tobacco industry is in the same range as MO (15). This means that BTI’s stock grew similarly to MO’s over the last 12 months.
MO's Profit vs Risk Rating (6) in the Tobacco industry is in the same range as BTI (8). This means that MO’s stock grew similarly to BTI’s over the last 12 months.
MO's SMR Rating (6) in the Tobacco industry is significantly better than the same rating for BTI (98). This means that MO’s stock grew significantly faster than BTI’s over the last 12 months.
MO's Price Growth Rating (17) in the Tobacco industry is in the same range as BTI (48). This means that MO’s stock grew similarly to BTI’s over the last 12 months.
MO's P/E Growth Rating (24) in the Tobacco industry is significantly better than the same rating for BTI (93). This means that MO’s stock grew significantly faster than BTI’s over the last 12 months.
| BTI | MO | |
|---|---|---|
| RSI ODDS (%) | 5 days ago 62% | N/A |
| Stochastic ODDS (%) | 5 days ago 59% | 5 days ago 43% |
| Momentum ODDS (%) | 5 days ago 54% | 5 days ago 70% |
| MACD ODDS (%) | 5 days ago 54% | 5 days ago 52% |
| TrendWeek ODDS (%) | 5 days ago 44% | 5 days ago 38% |
| TrendMonth ODDS (%) | 5 days ago 54% | 5 days ago 49% |
| Advances ODDS (%) | 11 days ago 62% | 8 days ago 55% |
| Declines ODDS (%) | 6 days ago 46% | 6 days ago 36% |
| BollingerBands ODDS (%) | 5 days ago 56% | 5 days ago 28% |
| Aroon ODDS (%) | 5 days ago 54% | 5 days ago 40% |
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