LIVE
PM
Philip Morris International Inc. · Tobacco / Consumer Staples
$178.40
-6.87% this month
VERSUS
⟷
COMPARE
BTI
British American Tobacco p.l.c. · Tobacco / Consumer Staples
$58.91
-10.82% this month
Scoreboard verdict
Across AI score, momentum, valuation, upside, operating margin
PM
1
BTI
3
Comparison scoreboard
BTI LEADS 3/5AI Score
PM ✓49.4
BTI 37.9
1Y Return
PM -2.76%
BTI ✓+26.50%
Fwd P/E
PM 20.19
BTI ✓11.17
Target Up.
PM +5.19%
BTI ✓+14.65%
Op. Margin
PM 36.04%
BTI N/A
Metrics last refreshed: 6/20/2026
Quick take
PM vs BTI Stock Comparison: AI Score, Valuation, Performance and Upside
PM and BTI are both transitioning tobacco companies seeking to replace cigarette revenue with smoke-free products, but with different execution trajectories. PMI's IQOS and ZYN are the market leaders in their respective categories (heat-not-burn and nicotine pouches) — PMI's smoke-free transformation is more advanced. BTI has Vuse e-cigarettes globally but faces more regulatory uncertainty and has written down significant value on its US Reynolds American acquisition. Both pay substantial dividends; BTI's yield is higher but PMI's dividend growth trajectory is better.
PM vs BTI — Philip Morris International (the most advanced smoke-free tobacco transformation with IQOS heat-not-burn market leadership and ZYN nicotine pouch dominance, reinvesting cigarette profits into smoke-free products to become a predominantly smoke-free company) versus British American Tobacco (the global tobacco company with Vuse vapor, glo heat-not-burn, and US Newport cigarettes through Reynolds American acquisition, offering 7-8% dividend yield but facing goodwill impairments and US cigarette market challenges).
Live analysis · updated 6/20/2026
BTI holds the edge across 3 of 5 key metrics in this comparison. BTI leads on both 1-year return (+26.50%) and forward P/E (11.17x vs 20.19x for PM), a relatively favorable combination of momentum and valuation. Analyst consensus implies meaningfully more upside for BTI (+14.65%) than for PM (+5.19%).
Normalized 1Y performance
PM
BTI
Recent returns
PM
BTI
Analyst price targets & sentiment
PM · 16 analysts
STRONG BUYHOLDSTRONG SELL
Buy (1.9/5.0)
Price target range
analyst low$143.45
analyst high$205.00
analyst mean$193.86
current price$178.40
+5.2% upside to analyst mean
BTI · 5 analysts
STRONG BUYHOLDSTRONG SELL
Strong Buy (1.5/5.0)
Price target range
analyst low$58.00
analyst high$72.00
analyst mean$67.54
current price$58.91
+14.6% upside to analyst mean
Who should consider this stock?
PM may suit investors who:
- →believe IQOS and ZYN represent the best-positioned smoke-free portfolio in tobacco — PMI's investment in R&D and manufacturing scale creates genuine product leadership vs competitors still primarily relying on combustibles
- →see ZYN's explosive US nicotine pouch demand as a secular growth opportunity — if ZYN reaches 10M+ weekly US users, it becomes a significant revenue contributor at high margins
- →value PMI's evolving dividend growth as smoke-free products improve margins — PMI's lower current yield than BTI may compound to higher long-term total returns if smoke-free transformation succeeds
- →are comfortable with IQOS US FDA approval uncertainty, international regulatory risk for heated tobacco, and ZYN supply constraints limiting short-term penetration
BTI may suit investors who:
- →value BTI's 7-8% dividend yield as one of the highest yields available in large-cap consumer companies — income investors who need current cash flow prefer BTI's yield to PMI's lower yield
- →see Vuse's global vapor market leadership as undervalued — if US FDA authorizes Vuse's key products, vapor revenue could accelerate materially
- →believe BTI's US cigarette brands (Newport menthol) provide durable cash flow for dividend support — menthol cigarette brand loyalty is exceptionally sticky
- →are comfortable with goodwill impairment history, US cigarette volume decline, Vuse FDA uncertainty, and high Reynolds American acquisition debt load
Performance & AI score
| Metric | PM | BTI |
|---|---|---|
| AI score | 49.4 | 37.9 |
| AI rank | #512 | #1331 |
| Latest close | $178.40 | $58.91 |
| 1M return | -6.87% | -10.82% |
| 6M return | +12.48% | +5.93% |
| 1Y return | -2.76% | +26.50% |
$10,000 invested — hypothetical growth (dividends reinvested)
How much would $10,000 be worth today if invested at the start of each period, with all dividends reinvested?
| Period | PM | BTI |
|---|---|---|
| 1Y ago | $9.77K (-2.3%) started 2025-06-18 | $13.42K (+34.2%) started 2025-06-18 |
| 5Y ago | $27.3K (+173.0%) started 2021-06-21 | $35.42K (+254.2%) started 2021-06-18 |
| 10Y ago | $49.96K (+399.6%) started 2016-06-20 | $47.44K (+374.4%) started 2016-06-20 |
Hypothetical — past performance does not guarantee future results.
Valuation & upside potential
| Metric | PM | BTI |
|---|---|---|
| Market cap | $287.24B | $127.26B |
| Trailing P/E | 25.96 | 12.53 |
| Forward P/E | 20.19 | 11.17 |
| Price/Sales | 7.37 | 4.97 |
| EV/Revenue | 8.09 | 27.27 |
| Analyst target | $193.86 | $67.54 |
| Target upside | +5.19% | +14.65% |
Growth, profitability & risk
| Metric | PM | BTI |
|---|---|---|
| Revenue growth | 9.10% | 0.10% |
| Earnings growth | -9.30% | N/A |
| EPS growth | -9.30% | N/A |
| FCF margin | +20.67% | +11.69% |
| Operating margin | 36.04% | N/A |
| Profit margin | 26.74% | 30.32% |
| ROIC proxy | N/A | 15.82% |
| Return on equity | N/A | 15.82% |
| Dividend yield | 3.19% | 5.44% |
| Beta | 0.41 | 0.13 |
| Debt/equity | N/A | 72.84 |
| Current ratio | 0.98 | 0.87 |
| Quick ratio | 0.45 | 0.56 |
Drawdown & downside risk
Lower drawdown and smaller single-period drops generally indicate a smoother ride, though they do not guarantee lower future risk.
1Y risk snapshot
PM max drawdown21.96%
BTI max drawdown13.75%
PM max wkly drop12.58%
BTI max wkly drop8.46%
5Y risk snapshot
PM max drawdown22.78%
BTI max drawdown29.84%
PM max wkly drop12.58%
BTI max wkly drop10.74%
10Y risk snapshot
PM max drawdown42.87%
BTI max drawdown56.02%
PM max wkly drop21.78%
BTI max wkly drop19.31%
Performance metrics by period
| Period | Metric | PM | BTI |
|---|---|---|---|
| 1Y | Growth | -2.31% | +26.50% |
| CAGR | -2.31% | +26.52% | |
| Sharpe ratio | -0.10 | 0.94 | |
| Max drawdown | 21.96% | 13.75% | |
| Max daily drop | 8.43% | 4.06% | |
| Max wkly drop | 12.58% | 8.46% | |
| 5Y | Growth | +118.13% | +122.63% |
| CAGR | +16.91% | +17.36% | |
| Sharpe ratio | 0.60 | 0.65 | |
| Max drawdown | 22.78% | 29.84% | |
| Max daily drop | 8.43% | 8.50% | |
| Max wkly drop | 12.58% | 10.74% | |
| 10Y | Growth | +178.40% | +86.48% |
| CAGR | +10.79% | +6.43% | |
| Sharpe ratio | 0.36 | 0.19 | |
| Max drawdown | 42.87% | 56.02% | |
| Max daily drop | 15.58% | 8.86% | |
| Max wkly drop | 21.78% | 19.31% |
Business comparison
| Category | PM | BTI |
|---|---|---|
| Company | Philip Morris International Inc. | British American Tobacco p.l.c. |
| Sector | Consumer Defensive | Tobacco / Consumer Staples |
| Industry | Tobacco | N/A |
| Core business | Philip Morris International (PMI) is the world's largest international tobacco company (excluding the US, where Altria sells Marlboro domestically). PMI owns Marlboro outside the US. PMI has made the most aggressive commitment to smoke-free products of any major tobacco company — its smoke-free products (IQOS heat-not-burn devices, ZYN nicotine pouches acquired via Swedish Match) now generate the majority of revenue in smoke-free markets. PMI acquired Swedish Match in 2022, adding ZYN (the US leading nicotine pouch brand) to its portfolio. IQOS is the market leader in heat-not-burn tobacco devices globally. | British American Tobacco (BTI) is the world's second-largest tobacco company with brands including Lucky Strike, Camel (international markets), Kent, Dunhill, Rothmans, and Newport (US, via Reynolds American). BTI's smoke-free portfolio includes Vuse (the world's largest e-cigarette brand by revenue), glo (heat-not-burn), and Velo (nicotine pouches). BTI has a significant US business from its 2017 Reynolds American acquisition bringing Newport, Camel, and Pall Mall. BTI has written down significant value from its US business amid vaping regulatory uncertainty and is evaluating strategic options for its US cigarette assets. |
| Investor focus | Investors focus on PMI's IQOS volume growth, ZYN nicotine pouch US market penetration, smoke-free product revenue mix as a percentage of total revenue, and whether PMI can re-accelerate revenue as smoke-free products scale. | Investors focus on BTI's Vuse e-cigarette revenue growth, US cigarette business strategic direction, goodwill impairment history, dividend sustainability, and smoke-free product profitability timeline. |
PM strengths
- →IQOS heat-not-burn market leadership: IQOS is the world-leading heated tobacco device in Japan, Korea, Europe, and developing markets — generating more revenue than any other smoke-free tobacco product globally
- →ZYN nicotine pouch dominance in the US: ZYN has 75%+ US nicotine pouch market share — the explosive US oral nicotine pouch category growth positions PMI for significant incremental US revenue
- →Smoke-free transformation credibility: PMI's commitment to becoming a predominantly smoke-free company is backed by $12.5B+ in R&D investment — more credible than competitors still primarily reliant on combustible cigarette profits
BTI strengths
- →Vuse world's largest e-cigarette brand by revenue: Vuse is the leading vapor brand globally with significant revenue and growing market position in the large-opportunity US vaping market
- →7-8% dividend yield with income track record: BTI offers one of the highest dividend yields among major consumer companies — income investors value BTI's high yield even in a period of smoke-free product investment
- →Newport cigarette brand strength in US: Newport is the #1 premium menthol cigarette in the US — BTI's US combustible business provides substantial cash flow despite secular volume decline
Risks to watch — PM
- →IQOS FDA PMTA (US market approval) uncertainty: PMI is seeking FDA approval to sell IQOS in the US again (Altria currently markets IQOS in select US markets) — regulatory timeline is uncertain
- →International regulatory risk: IQOS faces varying regulatory treatment globally — some markets are banning, restricting, or heavily taxing heated tobacco products inconsistently with evidence-based approaches
- →Swedish Match ZYN supply constraints: ZYN demand has repeatedly exceeded supply — manufacturing capacity expansions are ongoing but supply constraints have limited US market penetration
Risks to watch — BTI
- →US cigarette business goodwill impairment: BTI wrote down billions in goodwill on its US Reynolds American acquisition — the US cigarette market has declined faster than expected, reducing the value of the acquisition
- →Vuse FDA PMTA uncertainty: Vuse disposable e-cigarettes face FDA premarket authorization (PMTA) uncertainty — if FDA does not authorize key Vuse SKUs, US vapor revenue could be significantly impacted
- →High debt from Reynolds American acquisition: BTI carries significant debt from the 2017 Reynolds American deal — limiting strategic flexibility and acquisition capacity during the smoke-free product investment period
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