HP vs Altria Which Offers More Value?

HP Inc. and Altria Group are two companies with distinct business models and operations. HP Inc. is a technology company that specializes in personal computers, printers, and related services, while Altria Group is a leading tobacco company with popular brands like Marlboro. Both companies have a long-standing history in the market, with HP Inc. focusing on innovation and technology advancements, while Altria Group relies on its established position in the tobacco industry. Investors may consider factors such as growth potential, market trends, and company performance when evaluating the stocks of HP Inc. and Altria Group.

HP or Altria?

When comparing HP 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 HP 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. HP has a dividend yield of 3.78%, while Altria has a dividend yield of 8.99%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. HP reports a 5-year dividend growth of 12.96% year and a payout ratio of 37.71%. 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 HP P/E ratio at 12.57 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. HP P/B ratio is -25.66 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, HP has seen a 5-year revenue growth of 0.50%, while Altria's is 0.11%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with HP's ROE at -226.67% and Altria's ROE at -271.77%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $36.47 for HP and $54.49 for Altria. Over the past year, HP's prices ranged from $27.43 to $39.52, with a yearly change of 44.08%. 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.