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Why the Smartest Investors Are Buying Philip Morris International Stock and Not Altria

July 18, 2025
04:50 AM
4 min read
AI Enhanced
investmentstocksfinancialconsumer stapleshealthcaremarket cyclesseasonal analysismarket

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Altria (MO -1. 28%) is an iconic consumer staples maker that has shifted and changed over the years (something worth watching), considering recent developments. Today it is largely a tobacco...

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4 min read

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investment

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Published

July 18, 2025

04:50 AM

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The Motley Fool

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Key Topics
investmentstocksfinancialconsumer stapleshealthcaremarket cyclesseasonal analysismarket

Altria (MO -1. 28%) is an iconic consumer staples maker that has shifted and changed over the years (something worth watching), considering recent developments

Today it is largely a tobacco stock, though it has investments in a beverage maker

Philip Morris International (PM -1

Furthermore, 89%) s some of the storied history of Altria, but the smartest investors know that its is better

However, Image source: Getty Images (quite telling)

How are Altria and Philip Morris related

However, Altria's most important cigarette brand is Marlboro, in today's market environment

Marlboro has a huge 41% market in the North American market, in today's market environment

Additionally, Add in the company's other, much smaller, brands, and Altria's market rises to around 45%

Marlboro is also one of Philip Morris International's most important cigarette brands

The reason for this is that Altria spun off its international operations to create Philip Morris International, given the current landscape

So Altria controls the brands in North America and Philip Morris controls them everywhere else

On the other hand, This's an important distinction for any investor considering buying a tobacco stock

And it is one of the reasons why Philip Morris is performing better as a stock and than Altria

What's going on with Altria

In the first quarter of 2025, Altria's cigarette volume fell 13. 7%, continuing a long downward trend

On the other hand, On the other hand, Marlboro lost a percentage point of market, with other brands doing even worse, in this volatile climate

In contrast, Despite being a consumer staples giant, with a duct that tends to have huge brand loyalty, the industry trends in the U

Market are taking a huge toll on Altria's, considering recent developments

Furthermore, Altria knows it has a blem and has been trying to find a solution

Only it has made a number of large missteps, costing investors billions of dollars in write-downs

Altria simply isn't executing very well as it works through what is ly to be an increasingly challenging market environment, in this volatile climate

Additionally, Philip Morris, on the other hand, is executing very well, amid market uncertainty

Moreover, The foreign it serves appear to be less challenged, noting that cigarette volumes actually increased in the first quarter of 2025

However, That helped lead to a modest 0 (which is quite significant). 4-percentage-point market gain for the company

Thus, Philip Morris' foundation is stronger

That said, the real standout for Philip Morris is the growth of its non-cigarette operations

In the first quarter, the company's smoke-free generated 42% of its revenue and 44% of its fits (noteworthy indeed)

Some of its strongest non-cigarette es are vapes and pouches

However, Its pouches compete in the U

However, Market, meaning Philip Morris is now a competitor to its former owner, in today's financial world

Additionally, And one that appears to be running rings around Altria as that company struggles to move beyond cigarettes

Moreover, Philip Morris is in a much better position Investors who buy Altria are betting the tobacco giant can change with the times and find non-cigarette es to replace its slowly declining core (which is quite significant)

Or, to put it another way, if you buy Altria today you are hoping it can achieve the same success as Philip Morris, in this volatile climate

Most investors will bably be better off avoiding the risk that Altria keeps stumbling and just buying the better-performing tobacco company

On the other hand, Reuben Gregg Brewer has no position in any of the stocks mentioned

In contrast, The Motley Fool recommends Philip Morris International (which is quite significant)

The Motley Fool has a disclosure policy, given current economic conditions.