Philip Morris International vs Altria Which Performs Better?

Philip Morris International and Altria Group are two major players in the tobacco industry, with both companies holding significant market share and global presence. Philip Morris International focuses on international markets, while Altria primarily operates in the United States. Investors may be interested in comparing the performance of these two stocks, considering factors such as regulatory challenges, shifting consumer preferences, and potential for growth in emerging markets. Understanding the differences and similarities between these companies can help investors make informed decisions about their investment portfolios.

Philip Morris International or Altria?

When comparing Philip Morris International 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 Philip Morris International 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. Philip Morris International has a dividend yield of 4.13%, while Altria has a dividend yield of 7.2%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Philip Morris International reports a 5-year dividend growth of 2.74% year and a payout ratio of 82.53%. 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 Philip Morris International P/E ratio at 20.09 and Altria's P/E ratio at 9.11. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Philip Morris International P/B ratio is -20.37 while Altria's P/B ratio is -27.00.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Philip Morris International has seen a 5-year revenue growth of 0.19%, while Altria's is 0.11%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Philip Morris International's ROE at -95.99% and Altria's ROE at -271.77%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $126.36 for Philip Morris International and $54.52 for Altria. Over the past year, Philip Morris International's prices ranged from $87.82 to $134.15, with a yearly change of 52.76%. 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.