Coca-Cola vs Altria Which Is Superior?

Coca-Cola and Altria are two well-known companies in the stock market with strong brand recognition and a history of steady performance. Coca-Cola, a global leader in the beverage industry, has a wide range of products and a loyal customer base. Altria, on the other hand, is a major player in the tobacco and cannabis industries. Both companies have faced challenges and opportunities in recent years, making them interesting options for investors looking to diversify their portfolios.

Coca-Cola or Altria?

When comparing Coca-Cola 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 Coca-Cola 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. Coca-Cola has a dividend yield of 3.07%, while Altria has a dividend yield of 7.21%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Coca-Cola reports a 5-year dividend growth of 3.36% year and a payout ratio of 78.28%. On the other hand, Altria reports a 5-year dividend growth of 5.06% year and a payout ratio of 66.57%.

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 Coca-Cola P/E ratio at 26.14 and Altria's P/E ratio at 9.09. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Coca-Cola P/B ratio is 10.26 while Altria's P/B ratio is -26.97.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Coca-Cola has seen a 5-year revenue growth of 0.31%, while Altria's is 0.11%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Coca-Cola's ROE at 39.75% and Altria's ROE at -271.77%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $63.11 for Coca-Cola and $54.55 for Altria. Over the past year, Coca-Cola's prices ranged from $57.47 to $73.53, with a yearly change of 27.95%. Altria's prices fluctuated between $39.25 and $58.04, with a yearly change of 47.87%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.