Apple vs Altria

Apple and Altria are two prominent companies in very different industries, but both have proven to be solid investments in their own right. Apple, a tech giant known for its innovative products and strong brand loyalty, has seen consistent growth over the years due to its diverse product offerings and loyal customer base. On the other hand, Altria, a major player in the tobacco industry, has remained a stable investment despite facing challenges related to increasing regulations and changing consumer preferences. Both stocks have their own unique opportunities and risks, making them worth considering for investors looking to diversify their portfolios.

Apple or Altria?

When comparing Apple and Altria, 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 Apple and Altria.

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. Apple has a dividend yield of 0.42%, while Altria has a dividend yield of 9.98%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Apple reports a 5-year dividend growth of -19.56% year and a payout ratio of 14.90%. On the other hand, Altria reports a 5-year dividend growth of 5.06% year and a payout ratio of 67.28%.

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 Apple P/E ratio at 35.06 and Altria's P/E ratio at 8.44. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Apple P/B ratio is 53.59 while Altria's P/B ratio is -28.42.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Apple has seen a 5-year revenue growth of 0.82%, while Altria's is 0.11%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Apple's ROE at 147.15% and Altria's ROE at -269.50%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $232.37 for Apple and $49.73 for Altria. Over the past year, Apple's prices ranged from $164.08 to $237.49, with a yearly change of 44.74%. Altria's prices fluctuated between $39.07 and $54.95, with a yearly change of 40.64%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.