Japan Tobacco (OTCMKTS: JAPAY) and Altria Group (NYSE:MO) are both large-cap consumer staples companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, earnings, dividends, analyst recommendations and valuation.
Earnings & Valuation
This table compares Japan Tobacco and Altria Group’s revenue, earnings per share and valuation.
||Earnings Per Share
Altria Group has higher revenue and earnings than Japan Tobacco.
Altria Group pays an annual dividend of $2.80 per share and has a dividend yield of 4.6%. Japan Tobacco does not pay a dividend. Altria Group pays out 52.6% of its earnings in the form of a dividend. Japan Tobacco has increased its dividend for 9 consecutive years.
Volatility and Risk
Japan Tobacco has a beta of 1.44, meaning that its share price is 44% more volatile than the S&P 500. Comparatively, Altria Group has a beta of 0.63, meaning that its share price is 37% less volatile than the S&P 500.
Institutional and Insider Ownership
0.1% of Japan Tobacco shares are held by institutional investors. Comparatively, 62.5% of Altria Group shares are held by institutional investors. 0.1% of Altria Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
This table compares Japan Tobacco and Altria Group’s net margins, return on equity and return on assets.
||Return on Equity
||Return on Assets
This is a summary of current recommendations and price targets for Japan Tobacco and Altria Group, as reported by MarketBeat.com.
||Strong Buy Ratings
Altria Group has a consensus target price of $75.40, suggesting a potential upside of 23.16%. Given Altria Group’s higher possible upside, analysts clearly believe Altria Group is more favorable than Japan Tobacco.
Altria Group beats Japan Tobacco on 11 of the 15 factors compared between the two stocks.
About Japan Tobacco
Japan Tobacco Inc., together with its subsidiaries, manufactures and sells tobacco products, primarily cigarettes in Japan and internationally. It also distributes imported tobacco products. The company offers its tobacco products primarily under the Winston, Camel, Mevius, LD, Benson & Hedges (B&H), Glamour, Sobranie, Silk Cut, Natural American Spirit, Seven Stars, Pianissimo, Peace, HOPE, and other brand names. In addition, it engages in the research and development, manufacture, and sale of prescription drugs in the fields of metabolic diseases, viral infection, and autoimmune/inflammatory diseases. The companys pharmaceutical products include Riona tablets for the treatment of hyperphosphatemia, Remitch capsules for pruritus, and KAYEXALATE dry syrup for hyperkalemia; FUTHAN for injection, a protease inhibitor; ANTEBATE, a topical corticosteroid; CEDARTOLEN sublingual immunotherapy drugs; MITICURE House Dust Mite sublingual tablets; and Truvada, Stribild, Genvoya, and Descovy combination tablets for HIV. Further, it manufactures and sells staple food products, including frozen noodles, frozen rice, packed-cooked rice, and frozen baked bread; bakery products; and seasonings, including yeast extracts and oyster sauce. Japan Tobacco Inc. was founded in 1898 and is headquartered in Tokyo, Japan.
About Altria Group
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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