British American Tobacco vs Altria

British American Tobacco (BAT) and Altria Group are two reputable multinational tobacco companies that have established themselves as major players in the global market. Both companies have a long history of producing and distributing tobacco products, generating significant revenue and profit. While BAT is based in the United Kingdom and Altria in the United States, both companies face similar challenges in terms of increasing regulations and changing consumer preferences. Investors looking to invest in the tobacco industry may consider comparing the stocks of these two industry giants.

British American Tobacco or Altria?

When comparing British American Tobacco 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 British American Tobacco 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. British American Tobacco has a dividend yield of 10.81%, while Altria has a dividend yield of 9.98%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. British American Tobacco reports a 5-year dividend growth of 0.63% year and a payout ratio of -28.20%. 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 British American Tobacco P/E ratio at -2.64 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. British American Tobacco P/B ratio is 1.12 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, British American Tobacco has seen a 5-year revenue growth of 0.14%, while Altria's is 0.11%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with British American Tobacco's ROE at -43.20% and Altria's ROE at -269.50%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $35.32 for British American Tobacco and $49.73 for Altria. Over the past year, British American Tobacco's prices ranged from $28.25 to $39.54, with a yearly change of 39.96%. 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.