Altria vs British American Tobacco Which Outperforms?

Altria Group and British American Tobacco are two of the largest tobacco companies in the world, both with a significant presence in the global market. While both companies have seen fluctuations in their stock prices over time, they have remained resilient and have continued to generate profit for their shareholders. Investors often compare the performance of Altria and British American Tobacco stocks to make informed investment decisions. Each company has its own unique set of strengths and weaknesses, which can impact their stock performance.

Altria or British American Tobacco?

When comparing Altria and British American Tobacco, 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 British American Tobacco.

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 7.14%, while British American Tobacco has a dividend yield of 9.92%. 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, British American Tobacco reports a 5-year dividend growth of 0.63% year and a payout ratio of -28.20%.

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 9.19 and British American Tobacco's P/E ratio at -2.87. 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 -27.25 while British American Tobacco's P/B ratio is 1.22.

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 British American Tobacco's is 0.15%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Altria's ROE at -271.77% and British American Tobacco's ROE at -43.20%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $55.41 for Altria and $37.55 for British American Tobacco. Over the past year, Altria's prices ranged from $39.25 to $58.04, with a yearly change of 47.87%. British American Tobacco's prices fluctuated between $28.25 and $39.54, with a yearly change of 39.96%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.