British American Tobacco p.l.c. (BTI) vs Philip Morris International Inc. (PM)

British American Tobacco p.l.c. and Philip Morris International Inc. are both Tobacco companies. Philip Morris International Inc. is the larger, with a market value of $296.3B against $119.6B — 2.5× the size. British American Tobacco p.l.c. trades at the lower P/E: 7.1× against 27.4×. Philip Morris International Inc. grew revenue faster over the last twelve months: 8.93% against −0.01%. British American Tobacco p.l.c. has the higher net margin (25.9% vs 25.5%) and the lower return on invested capital (0.00% vs 27.5%). Both pay a dividend; British American Tobacco p.l.c. yields more (9.79% vs 5.94%). Across the 20 metrics below, British American Tobacco p.l.c. leads on 10 and Philip Morris International Inc. on 10.

Valuation

Metric BTI PM Tobacco median
P/E 7.07 27.37 15.85
P/S n/m 6.98 2.43
P/B n/m n/m 0.92
Price to free cash flow n/m 23.34 29.52
EV/EBITDA 1.33 18.78 10.47
EV/Sales 0.64 7.99 2.66
Earnings yield 14.14% 3.65% 3.65%
Free cash flow yield 0.00% 4.28% 1.59%

Profitability

Metric BTI PM Tobacco median
Gross margin 69.85% 67.48% 47.05%
Operating margin 0.00% 37.75% 0.00%
Net margin 25.86% 25.49% 0.67%
Free cash flow margin 0.00% 29.90% 2.54%
Return on equity 0.00% (130.11%) (10.54%)
Return on assets 0.00% 15.86% 0.00%
Return on invested capital 0.00% 27.53% 1.93%

Growth

Metric BTI PM Tobacco median
Revenue growth (TTM) (0.01%) 8.93% (0.30%)
EPS growth (last fiscal year) 164.37% 60.62% —
Revenue growth, 5-year CAGR 0.40% 7.21% 1.07%
Net income growth, 5-year CAGR 4.26% 7.09% 0.00%

Health

Metric BTI PM Tobacco median
Debt to equity 0.72 (7.38) 0.02
Current ratio 0.84 0.98 1.41
Net debt to EBITDA 2.49 2.60 0.64

Dividend

Metric BTI PM Tobacco median
Dividend yield 9.79% 5.94% 5.95%
Payout ratio 0.44 0.98 0.35

Size

Metric BTI PM Tobacco median
Market cap 119.63b 296.25b 1.20b

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