Altria vs Kraft Heinz: Stock Performance and Market Outlook

Altria and Kraft Heinz's stock trajectories exhibit stark differences. While Altria shows slower growth with long-term challenges, Kraft Heinz is poised for recovery. Investors need to weigh these factors seriously.

Date: 04-02-2025

AI Rating: 5

Earnings Per Share (EPS)
Altria has seen growth in its adjusted EPS, which is projected to increase by 2% to 5% for 2025, reaching a range of $5.22 to $5.37. This growth rate suggests that the company can easily cover its annual dividend of $4.08 per share, demonstrating the sustainability of its dividends despite challenges.

Revenue Growth
From 2014 to 2024, Altria's revenue grew at a compound annual growth rate of 3%, which indicates stability in its revenue generation, albeit at a slow pace. However, the decline in its cigarette and cigar shipments reveals challenges, as volumes dropped from 126.7 billion to 70.3 billion sticks.

Kraft Heinz's Performance
Kraft Heinz, on the other hand, is expected to see a revenue decline of 3% in 2024, with a projected organic sales range from flat to down 2%. Despite these revenues, it's anticipated that its adjusted EPS will increase by 1%, indicating a potential for maintaining earnings even during revenue shrinkage.

Net Income and Profit Margins
No specific information regarding net income or profit margins is provided in the report. Thus, a detailed analysis in these areas cannot be conducted.

Conclusion
While Altria is managing to grow its EPS and has a solid yield, its long-term challenges in cigarette sales raise concerns. Conversely, Kraft Heinz, despite its revenue struggles, has maintained some growth in EPS and has several strategies for brand revitalization that may lead to better performance in the coming years. Therefore, investors should carefully consider these dynamics when evaluating their positions in these stocks.

Stocks: MO KHC