BATS vs. IMB, DGE, RKT, TSCO, ABF, ULVR, BNZL, CCH, SBRY, and BME
Should you be buying British American Tobacco stock or one of its competitors? The main competitors of British American Tobacco include Imperial Brands (IMB), Diageo (DGE), Reckitt Benckiser Group (RKT), Tesco (TSCO), Associated British Foods (ABF), Unilever (ULVR), Bunzl (BNZL), Coca-Cola HBC (CCH), J Sainsbury (SBRY), and B&M European Value Retail (BME). These companies are all part of the "consumer defensive" sector.
Imperial Brands (LON:IMB) and British American Tobacco (LON:BATS) are both large-cap consumer defensive companies, but which is the better stock? We will contrast the two businesses based on the strength of their media sentiment, analyst recommendations, institutional ownership, profitability, valuation, risk, community ranking, dividends and earnings.
Imperial Brands pays an annual dividend of GBX 147 per share and has a dividend yield of 8.0%. British American Tobacco pays an annual dividend of GBX 236 per share and has a dividend yield of 10.0%. Imperial Brands pays out 5,927.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. British American Tobacco pays out -3,647.6% of its earnings in the form of a dividend. British American Tobacco is clearly the better dividend stock, given its higher yield and lower payout ratio.
Imperial Brands has a net margin of 12.88% compared to Imperial Brands' net margin of -52.66%. British American Tobacco's return on equity of 34.80% beat Imperial Brands' return on equity.
70.5% of Imperial Brands shares are owned by institutional investors. Comparatively, 43.2% of British American Tobacco shares are owned by institutional investors. 7.2% of Imperial Brands shares are owned by insiders. Comparatively, 10.5% of British American Tobacco shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
British American Tobacco received 597 more outperform votes than Imperial Brands when rated by MarketBeat users. Likewise, 74.04% of users gave British American Tobacco an outperform vote while only 69.53% of users gave Imperial Brands an outperform vote.
Imperial Brands presently has a consensus price target of GBX 2,197, suggesting a potential upside of 19.27%. British American Tobacco has a consensus price target of GBX 3,166.67, suggesting a potential upside of 33.56%. Given Imperial Brands' higher possible upside, analysts plainly believe British American Tobacco is more favorable than Imperial Brands.
Imperial Brands has a beta of 0.43, indicating that its share price is 57% less volatile than the S&P 500. Comparatively, British American Tobacco has a beta of 0.25, indicating that its share price is 75% less volatile than the S&P 500.
Imperial Brands has higher earnings, but lower revenue than British American Tobacco. British American Tobacco is trading at a lower price-to-earnings ratio than Imperial Brands, indicating that it is currently the more affordable of the two stocks.
In the previous week, British American Tobacco had 4 more articles in the media than Imperial Brands. MarketBeat recorded 6 mentions for British American Tobacco and 2 mentions for Imperial Brands. Imperial Brands' average media sentiment score of 0.09 beat British American Tobacco's score of -0.39 indicating that British American Tobacco is being referred to more favorably in the news media.
Summary
Imperial Brands and British American Tobacco tied by winning 10 of the 20 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding BATS and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of LON and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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