BTI is trading at 6.7x Forward P/E. Growth is expected to be around 3% going forward. Stable, predictable but mature growth. The dividend is well-covered by cash flow, and net debt/EBITDA of around 2.6x, which is okay for a consumer staples name. We like BTI at the current valuation.
EFX is a small-cap energy equipment and service provider, currently trading at 8.8x Forward P/E. The company has experienced cyclicality in its growth, and currently EFX generates limited cash flow. EFX also reinvested heavily into capex by leveraging the balance sheet to around 5.1x net debt/EBITDA. We are generally skeptical of cyclical companies that are highly leveraged. EFX has also seen lots of executive turnover this year, with two CFOs in six months. Thus, we would wait on this and do not find it too interesting today.