LVMH vs Altria Which Is More Promising?

LVMH and Altria are two prominent companies in the global market, each with a unique presence and value proposition. LVMH, a luxury goods conglomerate based in France, boasts a diverse portfolio of high-end brands in fashion, cosmetics, and spirits. On the other hand, Altria is a leading tobacco company in the US, known for its iconic cigarette brands. Both companies have seen fluctuations in their stock performances, influenced by market trends and company-specific factors. Investors often compare and contrast these stocks to make informed decisions based on their respective strengths and weaknesses.

LVMH or Altria?

When comparing LVMH 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 LVMH 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. LVMH has a dividend yield of 2.44%, while Altria has a dividend yield of 9.01%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. LVMH reports a 5-year dividend growth of 16.19% year and a payout ratio of 48.75%. 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 LVMH P/E ratio at 20.51 and Altria's P/E ratio at 9.23. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. LVMH P/B ratio is 4.42 while Altria's P/B ratio is -27.37.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, LVMH has seen a 5-year revenue growth of 0.85%, while Altria's is 0.11%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with LVMH's ROE at 22.19% and Altria's ROE at -271.77%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $603.50 for LVMH and $54.40 for Altria. Over the past year, LVMH's prices ranged from $600.83 to $958.69, with a yearly change of 59.56%. Altria's prices fluctuated between $39.25 and $55.40, with a yearly change of 41.15%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.