Better Buy: Altria Group vs. Philip Morris

in buy •  6 years ago 

— Altria's stock price is down 21% since May 2017, while Philip Morris has dropped an even more precipitous 29% over the same time span

— Right now, the two stocks have yields that are very close to each other, with Philip Morris International's 5.3% yield just nosing out Altria at 5.1%

— Key rival British American Tobacco (NYSE:BTI) has now wrapped worldwide operations into a single entity by having merged with Reynolds American, and BAT is fighting against both Altria and Philip Morris both in the traditional cigarette area and in reduced-risk products

— Both Altria and Philip Morris are hoping that the U.S. Food and Drug Administration will approve its modified-risk tobacco product application to have the iQOS heated tobacco system available to sell in the U.S., as Altria would have the direct sales rights and would pay Philip Morris a licensing fee if successful

— Meanwhile, Altria has a more diversified set of businesses under its corporate umbrella, with both its wine segment and its stake in beer giant Anheuser-Busch InBev giving it at least some protection against conditions in the tobacco market that Philip Morris doesn't share16998167_10154645501629335_3191066894519631390_n.jpg

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