"Teams know he's going to get the ball and he dominates," Favre said. "I think you go with a guy like that."
Smith became the first receiver since 1991 to win the Heisman Trophy and Favre believes this production will continue at the next level.
"This guy could be a Jerry Rice...a Randy Moss. A total game-changer."
Meanwhile, Lawrence is considered a generational prospect at quarterback but Favre said the position might not be an "immediate need" for Jacksonville.
"Nothing against Trevor Lawrence but I think you can find a free agent guy or a guy in the latter rounds or mid-rounds in the draft," he added.