Turning Point Brands (NYSE:TPB) & British American Tobacco (OTCMKTS:BTAFF) Head-To-Head Comparison

British American Tobacco (OTCMKTS:BTAFFGet Free Report) and Turning Point Brands (NYSE:TPBGet Free Report) are both consumer defensive companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, dividends, earnings, profitability, valuation, institutional ownership and analyst recommendations.

Dividends

British American Tobacco pays an annual dividend of $1.42 per share and has a dividend yield of 4.8%. Turning Point Brands pays an annual dividend of $0.26 per share and has a dividend yield of 1.1%. British American Tobacco pays out 74.3% of its earnings in the form of a dividend. Turning Point Brands pays out 44.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Turning Point Brands has raised its dividend for 4 consecutive years.

Profitability

This table compares British American Tobacco and Turning Point Brands’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
British American Tobacco N/A N/A N/A
Turning Point Brands 2.92% 40.47% 9.06%

Valuation & Earnings

This table compares British American Tobacco and Turning Point Brands’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
British American Tobacco N/A N/A N/A $1.92 15.37
Turning Point Brands $415.01 million 1.03 $11.64 million $0.59 41.19

Turning Point Brands has higher revenue and earnings than British American Tobacco. British American Tobacco is trading at a lower price-to-earnings ratio than Turning Point Brands, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

39.7% of British American Tobacco shares are owned by institutional investors. Comparatively, 84.9% of Turning Point Brands shares are owned by institutional investors. 5.2% of Turning Point Brands shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for British American Tobacco and Turning Point Brands, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
British American Tobacco 0 0 0 0 N/A
Turning Point Brands 0 0 1 0 3.00

Turning Point Brands has a consensus price target of $28.00, suggesting a potential upside of 15.23%. Given Turning Point Brands’ higher possible upside, analysts clearly believe Turning Point Brands is more favorable than British American Tobacco.

Summary

Turning Point Brands beats British American Tobacco on 11 of the 13 factors compared between the two stocks.

About British American Tobacco

(Get Free Report)

British American Tobacco p.l.c. engages in the provision of tobacco and nicotine products to consumers worldwide. It offers vapour, tobacco heating, and modern oral nicotine products; combustible cigarettes; and traditional oral products, such as snus and moist snuff. The company offers its products under the Vuse, glo, Velo, Grizzly, Kodiak, Dunhill, Kent, Lucky Strike, Pall Mall, Rothmans, Camel, Natural American Spirit, Newport, Vogue, Viceroy, Kool, Peter Stuyvesant, Craven A, State Express 555 and Shuang Xi brands. It distributes its products to retail outlets. The company was founded in 1902 and is headquartered in London, the United Kingdom.

About Turning Point Brands

(Get Free Report)

Turning Point Brands, Inc., together with its subsidiaries, manufactures, markets, and distributes adult consumer products. It operates through Zig-Zag Products, Stoker's Products, and NewGen Products segments. Zig-Zag Products segment markets and distributes rolling papers, tubes, finished cigars, make-your-own cigar wraps, and related products, as well as lighters and other accessories under the Zig-Zag brand. The Stoker's Products segment manufactures and markets moist snuff tobacco and loose-leaf chewing tobacco products under the Stoker's, Beech-Nut, Durango, Trophy, and Wind River brands. Its NewGen Products segment market and distribute vapor products and other products without tobacco and/or nicotine to individual consumers through VaporFi and direct B2C online platform, as well as non-traditional retail through VaporBeast. In addition, it markets and distributes cannabis accessories and tobacco products. The company sells its products to wholesale distributors and retail merchants in the independent and chain convenience stores, tobacco outlets, food stores, mass merchandising, drug store, and non-traditional retail channels. Turning Point Brands, Inc. was formerly known as North Atlantic Holding Company, Inc. and changed its name to Turning Point Brands, Inc. in November 2015. The company was founded in 1988 and is headquartered in Louisville, Kentucky.

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