Analyzing Vapor Group (OTCMKTS:VPOR) and British American Tobacco (NYSE:BTI)

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

Profitability

This table compares British American Tobacco and Vapor Group’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
Vapor Group	N/A	N/A	N/A

Institutional and Insider Ownership

16.2% of British American Tobacco shares are owned by institutional investors. 0.0% of British American Tobacco shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares British American Tobacco and Vapor Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
British American Tobacco	$33.06 billion	3.39	$3.92 billion	$4.87	11.16
Vapor Group	N/A	N/A	N/A	$0.00	N/A

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

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
British American Tobacco	1	0	4	0	2.60
Vapor Group	0	0	0	0	0.00

British American Tobacco currently has a consensus price target of $33.00, indicating a potential downside of 39.28%. Given Vapor Group’s higher possible upside, analysts clearly believe Vapor Group is more favorable than British American Tobacco.

Summary

British American Tobacco beats Vapor Group on 7 of the 8 factors compared between the two stocks.

About British American Tobacco

British American Tobacco p.l.c. engages in the provision of tobacco and nicotine products to consumers worldwide. It also offers vapour, heated, 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 also distributes its products to retail outlets. British American Tobacco p.l.c. was founded in 1902 and is based in London, the United Kingdom.

About Vapor Group

Vapor Group, Inc. develops, manufactures, and markets electronic cigarettes, vaporizers, and naturally flavored e-liquids in the United States. It markets its products under the Vapor Group, Total Vapor, Vapor 123, and The Vapor Products brand names. The company is headquartered in Miami, Florida. Vapor Group, Inc. is a subsidiary of SF Holdings LLC.