Over the past three months, the tobacco industry (Tobacco) has been one of the top growth leaders in the S&P 500 index, up 16.2%.
Some of the largest companies in this industry (by market capitalization): Philip Morris International ($237.0B) and Altria Group ($98.2B). They both manufacture tobacco products and alternative smoking products. Until 2008, PMI was the international division of Altria Group.
Based on the latest quarterly reporting data, we analyzed the profitability, strength, and efficiency criteria for each company according to the methodology of Stanford University professor Joseph Piotroski.
As we can see, in terms of fundamental data, both companies demonstrate quite strong results. Altria Group outperforms its competitor Philip Morris International in terms of sustainability, and Philip Morris outperforms its competitor in terms of efficiency.
Over the past 3 months, Philip Morris International shares have risen by +22.3%, and Altria Group – by +7.5% (the S&P 500 index has fallen by -6.6%). Both companies performed better than the index.
So, the winner in this issue is Philip Morris International. Although Altria Group’s business is superior in terms of changes in return on assets and financing, Philip Morris International looks healthier in terms of asset accumulation and turnover, and its shares show better returns.
* This is not an investment recommendation. It is up to each individual to decide which criteria to favor when making an investment decision, taking into account their goals and individual risk tolerance.
