Altria vs Philip Morris International

Both Altria Group Inc. and Philip Morris International Inc. are leading players in the tobacco industry. Altria is a U.S.-based company with a strong presence in the domestic market, while Philip Morris International focuses on the international market excluding the United States. Both companies have faced challenges due to declining smoking rates and increasing regulatory scrutiny. Investors may consider factors such as dividend yields, revenue growth, and innovation strategies when evaluating these stocks.

Altria or Philip Morris International?

When comparing Altria and Philip Morris International, 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 Philip Morris International.

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 9.98%, while Philip Morris International has a dividend yield of 4.36%. 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 67.28%. On the other hand, Philip Morris International reports a 5-year dividend growth of 2.74% year and a payout ratio of 91.59%.

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 8.44 and Philip Morris International's P/E ratio at 21.27. 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 -28.42 while Philip Morris International's P/B ratio is -19.22.

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 Philip Morris International's is 0.19%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Altria's ROE at -269.50% and Philip Morris International's ROE at -86.50%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $49.73 for Altria and $120.03 for Philip Morris International. Over the past year, Altria's prices ranged from $39.07 to $54.95, with a yearly change of 40.64%. Philip Morris International's prices fluctuated between $87.23 and $128.22, with a yearly change of 46.99%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.