Critical Contrast: British American Tobacco (BTI) & mCig (MCIG)

British American Tobacco (NYSE:BTI) and mCig (OTCMKTS:MCIG) are both consumer staples companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, earnings, dividends, profitability, valuation and risk.

Profitability

This table compares British American Tobacco and mCig’s 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
mCig -35.11% -22.13% -17.80%

Dividends

British American Tobacco pays an annual dividend of $2.50 per share and has a dividend yield of 7.3%. mCig does not pay a dividend. British American Tobacco pays out 67.9% of its earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for British American Tobacco and mCig, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
British American Tobacco 2 4 1 0 1.86
mCig 0 0 0 0 N/A

British American Tobacco currently has a consensus target price of $66.00, indicating a potential upside of 92.76%. Given British American Tobacco’s higher possible upside, equities analysts clearly believe British American Tobacco is more favorable than mCig.

Insider and Institutional Ownership

7.4% of British American Tobacco shares are held by institutional investors. Comparatively, 0.0% of mCig shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares British American Tobacco and mCig’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
British American Tobacco $26.15 billion 2.79 $48.37 billion $3.68 9.30
mCig $7.08 million 15.33 -$1.07 million N/A N/A

British American Tobacco has higher revenue and earnings than mCig.

Risk and Volatility

British American Tobacco has a beta of 0.94, indicating that its stock price is 6% less volatile than the S&P 500. Comparatively, mCig has a beta of -2.32, indicating that its stock price is 332% less volatile than the S&P 500.

Summary

British American Tobacco beats mCig on 10 of the 12 factors compared between the two stocks.

British American Tobacco Company Profile

British American Tobacco p.l.c. provides cigarettes and other tobacco products worldwide. It manufactures vapour and tobacco heating products; oral tobacco and nicotine products, such as snus and moist snuff; cigars; and e-cigarettes. The company offers its products under the Dunhill, Kent, Lucky Strike, Pall Mall, Rothmans, Vogue, Viceroy, Kool, Peter Stuyvesant, Craven A, Benson & Hedges, John Player Gold Leaf, State Express 555, and Shuang Xi brands. The company sells its products to retail outlets. British American Tobacco p.l.c. was founded in 1902 and is headquartered in London, the United Kingdom.

mCig Company Profile

mCig, Inc. operates in the cannabis industry in the United States and internationally. The company operates through four segments: Cultivation, Manufacturing and Distribution (CMD); Retail Sales; Media and Technologies; and Agriculture. The CMD segment designs, develops, engineers, and constructs modular buildings and green houses that assist cannabis and herbal growers in the market, as well as offers consulting services in the cannabis industry. The Retail Sales segment engages in the retail, distribution, and online sale of electronic cigarettes, CBD products, and vaporizers, as well as supplies for cannabis distributors, growers, and dispensaries. The Media and Technologies segment operates 420cloud, a social platform for advertising services in the cannabis and cryptocurrency markets; and provides software solutions, Website development, and other social media services. The Agriculture segment is involved in planting and growing industrial hemp. mCig, Inc. offers financial and consulting services to cannabis and cryptocurrency markets. The company was formerly known as Lifetech Industries, Inc. and changed its name to mCig, Inc. in August 2013. mCig, Inc. was founded in 2010 and is headquartered in Las Jacksonville, Florida.

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