Altria Group, Inc. (MO) vs Philip Morris International Inc. (PM)

Altria Group, Inc. and Philip Morris International Inc. are both Tobacco companies. Philip Morris International Inc. is the larger, with a market value of $296.3B against $114.9B — 2.6× the size. Altria Group, Inc. trades at the lower P/E: 14.5× against 27.4×. Philip Morris International Inc. grew revenue faster over the last twelve months: 8.93% against −0.58%. Altria Group, Inc. has the higher net margin (33.9% vs 25.5%) and the higher return on invested capital (35.0% vs 27.5%). Both pay a dividend; Altria Group, Inc. yields more (9.96% vs 5.94%). Across the 22 metrics below, Altria Group, Inc. leads on 16 and Philip Morris International Inc. on 6.

Valuation

Metric MO PM Tobacco median
P/E 14.52 27.37 15.85
P/S 4.90 6.98 2.43
P/B n/m n/m 0.92
Price to free cash flow 12.61 23.34 29.52
EV/EBITDA 11.93 18.78 10.47
EV/Sales 5.85 7.99 2.66
Earnings yield 6.89% 3.65% 3.65%
Free cash flow yield 7.93% 4.28% 1.59%

Profitability

Metric MO PM Tobacco median
Gross margin 62.96% 67.48% 47.05%
Operating margin 46.78% 37.75% 0.00%
Net margin 33.91% 25.49% 0.67%
Free cash flow margin 38.85% 29.90% 2.54%
Return on equity (273.15%) (130.11%) (10.54%)
Return on assets 24.21% 15.86% 0.00%
Return on invested capital 35.00% 27.53% 1.93%

Growth

Metric MO PM Tobacco median
Revenue growth (TTM) (0.58%) 8.93% (0.30%)
EPS growth (last fiscal year) (37.00%) 60.62% —
Revenue growth, 5-year CAGR (2.30%) 7.21% 1.07%
Net income growth, 5-year CAGR 9.21% 7.09% 0.00%

Health

Metric MO PM Tobacco median
Debt to equity (9.39) (7.38) 0.02
Current ratio 0.52 0.98 1.41
Net debt to EBITDA 1.88 2.60 0.64

Dividend

Metric MO PM Tobacco median
Dividend yield 9.96% 5.94% 5.95%
Payout ratio 0.99 0.98 0.35

Size

Metric MO PM Tobacco median
Market cap 114.88b 296.25b 1.20b

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