Turning Point Brands (NYSE: TPB) and Altria Group (NYSE:MO) are both consumer staples companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, risk, earnings, analyst recommendations and profitability.
Valuation & Earnings
This table compares Turning Point Brands and Altria Group’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Turning Point Brands||$285.78 million||1.34||$20.20 million||$1.04||19.13|
|Altria Group||$25.58 billion||4.42||$10.22 billion||$5.32||11.17|
Turning Point Brands pays an annual dividend of $0.04 per share and has a dividend yield of 0.2%. Altria Group pays an annual dividend of $2.80 per share and has a dividend yield of 4.7%. Turning Point Brands pays out 3.8% of its earnings in the form of a dividend. Altria Group pays out 52.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Altria Group has increased its dividend for 9 consecutive years. Altria Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This is a breakdown of current ratings and recommmendations for Turning Point Brands and Altria Group, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Turning Point Brands||0||0||3||0||3.00|
Turning Point Brands currently has a consensus price target of $19.00, suggesting a potential downside of 4.47%. Altria Group has a consensus price target of $75.09, suggesting a potential upside of 26.31%. Given Altria Group’s higher probable upside, analysts clearly believe Altria Group is more favorable than Turning Point Brands.
Institutional & Insider Ownership
19.8% of Turning Point Brands shares are held by institutional investors. Comparatively, 62.6% of Altria Group shares are held by institutional investors. 14.2% of Turning Point Brands shares are held by company insiders. Comparatively, 0.1% of Altria Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
This table compares Turning Point Brands and Altria Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Turning Point Brands||7.07%||55.65%||8.75%|
Risk and Volatility
Turning Point Brands has a beta of 0.47, suggesting that its share price is 53% less volatile than the S&P 500. Comparatively, Altria Group has a beta of 0.63, suggesting that its share price is 37% less volatile than the S&P 500.
Altria Group beats Turning Point Brands on 12 of the 17 factors compared between the two stocks.
Turning Point Brands Company Profile
Turning Point Brands, Inc. is an independent provider of Other Tobacco Products (OTP) in the United States. The Company operates in three segments smokeless products, smoking products and NewGen products. The smokeless products segment manufactures and markets moist snuff; and contracts for and markets chewing tobacco products. The smoking products segment imports and markets cigarette papers, tubes and related products; processes, packages and markets make-your-own (MYO) cigarette tobaccos; imports and markets finished cigars and MYO cigar tobaccos and cigar wraps, and processes, packages and markets pipe tobaccos. The NewGen products segment markets e-cigarettes, e-liquids, vaporizers and other related products, and distributes a wide assortment of vaping products to non-traditional retail outlets via VaporBeast. The Company’s portfolio of brands includes Zig-Zag, Beech-Nut, Stoker’s, Trophy, and VaporBeast.
Altria Group Company Profile
Altria Group, Inc. is a holding company. The Company’s segments include smokeable products, smokeless products and wine. The Company’s subsidiaries include Philip Morris USA Inc. (PM USA), which is engaged in the manufacture and sale of cigarettes in the United States; John Middleton Co. (Middleton), which is engaged in the manufacture and sale of machine-made cigars and pipe tobacco, and UST LLC (UST), which, through its subsidiaries, including U.S. Smokeless Tobacco Company LLC (USSTC) and Ste. Michelle Wine Estates Ltd. (Ste. Michelle), is engaged in the manufacture and sale of smokeless tobacco products and wine. Its other operating companies include Nu Mark LLC (Nu Mark), a subsidiary that is engaged in the manufacture and sale of tobacco products, and Philip Morris Capital Corporation (PMCC), a subsidiary that maintains a portfolio of finance assets. Other subsidiaries include Altria Group Distribution Company and Altria Client Services LLC.
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