UVV or BTI: Which Is the Better Value Stock Right Now?
ZACKS·2025-11-07 17:40

Core Viewpoint - Investors interested in undervalued tobacco stocks should consider Universal Corp. (UVV) over British American Tobacco (BTI) due to UVV's stronger performance in key valuation metrics and analyst outlook [1][3][7] Valuation Metrics - UVV has a forward P/E ratio of 11.58, while BTI's forward P/E is 12.12, indicating UVV may be more attractively priced [5] - The PEG ratio for UVV is 2.89, compared to BTI's 3.82, suggesting UVV offers better value relative to its expected earnings growth [5] - UVV's P/B ratio stands at 0.91, significantly lower than BTI's P/B of 1.77, further supporting UVV's undervaluation [6] Analyst Outlook - UVV currently holds a Zacks Rank of 1 (Strong Buy), reflecting an improving earnings estimate revision trend, while BTI has a Zacks Rank of 3 (Hold) [3][7] - The positive earnings outlook for UVV enhances its attractiveness as a value investment option [7]