Altria vs Apple Which Is a Smarter Choice?

Altria Group, Inc. and Apple Inc. are two widely recognized companies in the stock market, but their industries couldn't be more different. Altria is a leading tobacco company with a long history of providing smokers with their preferred brands of cigarettes, while Apple is a technology giant known for its innovative products and services. As investors weigh the risks and rewards of investing in these two stocks, they must consider factors such as market trends, company performance, and industry outlooks.

Altria or Apple?

When comparing Altria and Apple, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Altria and Apple.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Altria has a dividend yield of 8.9%, while Apple has a dividend yield of 0.44%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Altria reports a 5-year dividend growth of 5.06% year and a payout ratio of 66.57%. On the other hand, Apple reports a 5-year dividend growth of -19.56% year and a payout ratio of 16.25%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Altria P/E ratio at 9.26 and Apple's P/E ratio at 36.42. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Altria P/B ratio is -27.47 while Apple's P/B ratio is 59.94.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Altria has seen a 5-year revenue growth of 0.11%, while Apple's is 0.82%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Altria's ROE at -271.77% and Apple's ROE at 137.87%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $55.53 for Altria and $224.27 for Apple. Over the past year, Altria's prices ranged from $39.25 to $56.32, with a yearly change of 43.49%. Apple's prices fluctuated between $164.08 and $237.49, with a yearly change of 44.74%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.