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BTI vs PM
Which Stock Would AI Choose? British American Tobacco (BTI) vs. Philip Morris International (PM) Stock Comparison
Key Takeaways
- British American Tobacco (BTI) and Philip Morris International (PM) both operate in the tobacco sector but differ in their pace of transition to smoke-free products, with PM showing faster revenue growth from its portfolio.
- Recent market activity indicates PM has delivered stronger year-to-date price performance compared to BTI, amid broader sector shifts toward reduced-risk nicotine alternatives.
- BTI has emphasized cost restructuring and expansion in modern oral products, while PM has highlighted gains in heat-not-burn and nicotine pouch segments like ZYN and IQOS.
- Valuation metrics show BTI trading at a lower forward price-to-earnings multiple, potentially appealing to income-focused investors seeking higher dividend yields.
- Sector exposure remains similar, with both companies navigating regulatory pressures and declining combustible volumes through pricing power and new category investments.
- Market sentiment reflects ongoing investor focus on smoke-free innovation, where relative execution has influenced recent relative performance between the two stocks.
Introduction
British American Tobacco (BTI) and Philip Morris International (PM) represent two leading global tobacco companies navigating the industry's shift toward reduced-risk and smoke-free alternatives. This comparison examines their business models, recent stock behavior, and key performance drivers in the current market environment. The analysis is relevant for traders and investors evaluating relative positioning within the consumer staples sector, particularly those assessing dividend income potential, growth in new nicotine categories, and exposure to evolving regulatory and consumer trends. Both stocks offer exposure to a mature industry undergoing structural change, making the comparison useful for portfolio allocation decisions focused on stability and adaptation.
BTI Overview and Recent Performance
British American Tobacco (BTI) is a multinational company with operations in combustibles and a growing emphasis on smokeless nicotine products. In recent weeks, the stock has shown modest price movements amid earnings updates highlighting a pivot to reduced-risk offerings. H1 2026 results reflected revenue growth of 2.9% and EPS growth of 7.9%, supported by smokeless products reaching 19.8% of group revenue. Management has outlined restructuring initiatives, including workforce reductions aimed at annual cost savings. Recent market activity has been influenced by progress in modern oral segments alongside ongoing volume pressures in traditional cigarettes. Sentiment has remained measured, with the stock reflecting broader sector dynamics and investor attention to execution on transformation goals.
PM Overview and Recent Performance
Philip Morris International (PM) focuses on international markets with a portfolio that includes traditional cigarettes and expanding smoke-free products such as heat-not-burn devices and nicotine pouches. In recent market activity, the stock has posted gains supported by strong performance in its reduced-risk categories. Key developments include expansions in the ZYN lineup and manufacturing investments, alongside raised foreign exchange outlook tied to smoke-free momentum. Recent earnings periods showed solid organic revenue growth and contributions from IQOS and ZYN. Price behavior has reflected positive investor response to these initiatives, with the stock demonstrating resilience relative to peers amid sector-wide transitions. Sentiment has been supported by visible progress in new product adoption across multiple markets.
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Head-to-Head Comparison
British American Tobacco (BTI) and Philip Morris International (PM) share exposure to the global tobacco industry but diverge in scale, geographic focus, and transition speed. PM maintains a larger market capitalization and has achieved higher recent revenue growth rates driven by its smoke-free portfolio, including leadership in heat-not-burn and U.S. nicotine pouch categories. BTI offers a more pronounced focus on cost efficiencies through restructuring and has built presence in modern oral products, though at a comparatively earlier stage of contribution. Recent momentum has favored PM, with stronger year-to-date returns, while BTI trades at a lower forward valuation multiple that may appeal to yield-oriented strategies. Both face similar risk factors, including regulatory scrutiny and combustible volume declines offset by pricing. PM’s broader international footprint contrasts with BTI’s emphasis on specific market optimizations, creating trade-offs in growth visibility versus valuation support.
Tickeron AI Verdict
Based on observable factors such as trend consistency in smoke-free revenue contributions, relative price stability, and recent earnings execution, Tickeron’s AI would currently assign a probabilistic preference toward Philip Morris International (PM). The stock has demonstrated more consistent positioning in high-growth nicotine categories amid sector shifts, supporting steadier momentum compared to peers. British American Tobacco (BTI) presents compelling valuation attributes that could appeal in different market regimes. This assessment reflects current data patterns rather than guarantees of future outcomes.
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 Hold and PM is a Hold.
| BTI | PM | BTI / PM | |
| Capitalization | 121B | 294B | 41% |
| EBITDA | 12.1B | 18.7B | 65% |
| Gain YTD | 1.417 | 19.627 | 7% |
| P/E Ratio | 14.35 | 25.90 | 55% |
| Revenue | 25.8B | 42.5B | 61% |
| Total Cash | 2.53B | 6B | 42% |
| Total Debt | 35.1B | 49.1B | 71% |
BTI | PM | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 13 | 18 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 9 Undervalued | 20 Undervalued | |
PROFIT vs RISK RATING 1..100 | 13 | 9 | |
SMR RATING 1..100 | 99 | 3 | |
PRICE GROWTH RATING 1..100 | 56 | 37 | |
P/E GROWTH RATING 1..100 | 93 | 33 | |
SEASONALITY SCORE 1..100 | 85 | 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 PM (20). This means that BTI’s stock grew similarly to PM’s over the last 12 months.
PM's Profit vs Risk Rating (9) in the Tobacco industry is in the same range as BTI (13). This means that PM’s stock grew similarly to BTI’s over the last 12 months.
PM's SMR Rating (3) in the Tobacco industry is significantly better than the same rating for BTI (99). This means that PM’s stock grew significantly faster than BTI’s over the last 12 months.
PM's Price Growth Rating (37) in the Tobacco industry is in the same range as BTI (56). This means that PM’s stock grew similarly to BTI’s over the last 12 months.
PM's P/E Growth Rating (33) in the Tobacco industry is somewhat better than the same rating for BTI (93). This means that PM’s stock grew somewhat faster than BTI’s over the last 12 months.
| BTI | PM | |
|---|---|---|
| RSI ODDS (%) | 5 days ago 61% | N/A |
| Stochastic ODDS (%) | 2 days ago 57% | 2 days ago 46% |
| Momentum ODDS (%) | 2 days ago 62% | 2 days ago 60% |
| MACD ODDS (%) | 2 days ago 59% | 2 days ago 60% |
| TrendWeek ODDS (%) | 2 days ago 58% | 2 days ago 49% |
| TrendMonth ODDS (%) | 2 days ago 39% | 2 days ago 60% |
| Advances ODDS (%) | 6 days ago 62% | 6 days ago 59% |
| Declines ODDS (%) | 2 days ago 49% | 2 days ago 46% |
| BollingerBands ODDS (%) | 2 days ago 66% | 2 days ago 60% |
| Aroon ODDS (%) | 2 days ago 33% | N/A |
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 overvalued. 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 while PM’s FA Score has 4 green FA rating(s).
- BTI’s FA Score: 2 green, 3 red.
- PM’s FA Score: 4 green, 1 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 4 TA indicator(s) are bullish while PM’s TA Score has 5 bullish TA indicator(s).
- BTI’s TA Score: 4 bullish, 5 bearish.
- PM’s TA Score: 5 bullish, 3 bearish.
Price Growth
BTI (@Tobacco) experienced а +1.07% price change this week, while PM (@Tobacco) price change was -1.28% for the same time period.
The average weekly price growth across all stocks in the @Tobacco industry was -2.51%. For the same industry, the average monthly price growth was -8.83%, and the average quarterly price growth was -13.49%.
Reported Earning Dates
BTI is expected to report earnings on Oct 29, 2026.
PM is expected to report earnings on Oct 20, 2026.
Industries' Descriptions
@Tobacco (-2.51% 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.
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BTI and
Correlation & Price change
A.I.dvisor indicates that over the last year, BTI has been loosely correlated with PM. These tickers have moved in lockstep 62% of the time. This A.I.-generated data suggests there is some statistical probability that if BTI jumps, then PM could also see price increases.
PM and
Correlation & Price change
A.I.dvisor indicates that over the last year, PM has been loosely correlated with BTI. These tickers have moved in lockstep 63% of the time. This A.I.-generated data suggests there is some statistical probability that if PM jumps, then BTI could also see price increases.