Dow vs Altria Which Is a Better Investment?

Dow Inc. and Altria Group are two well-known companies in the stock market, each with a strong presence in their respective industries. Dow Inc. is a leading global materials science company that provides a wide range of products and solutions, while Altria Group is a major player in the tobacco and alternative products market. Both companies have demonstrated steady performance over the years, making them attractive investment options for those looking to diversify their portfolios. Investors should carefully consider the fundamentals of each company before making any investment decisions.

Dow or Altria?

When comparing Dow 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 Dow 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. Dow has a dividend yield of 6.28%, while Altria has a dividend yield of 8.99%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Dow reports a 5-year dividend growth of 0.00% year and a payout ratio of 184.68%. 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 Dow P/E ratio at 29.43 and Altria's P/E ratio at 9.25. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Dow P/B ratio is 1.71 while Altria's P/B ratio is -27.44.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Dow has seen a 5-year revenue growth of -0.22%, while Altria's is 0.11%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Dow's ROE at 5.78% and Altria's ROE at -271.77%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $44.37 for Dow and $54.49 for Altria. Over the past year, Dow's prices ranged from $44.37 to $60.69, with a yearly change of 36.78%. Altria's prices fluctuated between $39.25 and $55.62, with a yearly change of 41.69%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.