Altria Group (MO) and mCig (MCIG) Critical Comparison

Altria Group (NYSE:MO) and mCig (OTCMKTS:MCIG) are both consumer staples companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, dividends, institutional ownership, profitability, earnings, analyst recommendations and risk.

Dividends

Altria Group pays an annual dividend of $3.20 per share and has a dividend yield of 5.8%. mCig does not pay a dividend. Altria Group pays out 94.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Altria Group has raised its dividend for 9 consecutive years.

Valuation and Earnings

This table compares Altria Group and mCig’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Altria Group $25.58 billion 4.08 $10.22 billion $3.38 16.44
mCig $7.08 million 15.04 -$1.07 million N/A N/A

Altria Group has higher revenue and earnings than mCig.

Profitability

This table compares Altria Group and mCig’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Altria Group 42.13% 48.31% 17.21%
mCig -35.11% -22.13% -17.80%

Volatility and Risk

Altria Group has a beta of 0.38, meaning that its share price is 62% less volatile than the S&P 500. Comparatively, mCig has a beta of -2.3, meaning that its share price is 330% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations for Altria Group and mCig, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Altria Group 0 5 8 0 2.62
mCig 0 0 0 0 N/A

Altria Group presently has a consensus price target of $67.19, indicating a potential upside of 20.94%. Given Altria Group’s higher probable upside, equities analysts plainly believe Altria Group is more favorable than mCig.

Insider and Institutional Ownership

64.5% of Altria Group shares are held by institutional investors. Comparatively, 0.0% of mCig 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.

Summary

Altria Group beats mCig on 12 of the 14 factors compared between the two stocks.

Altria Group Company Profile

Altria Group, Inc., through its subsidiaries, manufactures and sells cigarettes, smokeless products, and wine in the United States. It offers cigarettes primarily under the Marlboro brand; cigars principally under the Black & Mild brand; and moist smokeless tobacco products under the Copenhagen, Skoal, Red Seal, and Husky brands. The company also produces and sells varietal and blended table wines, and sparkling wines under the Chateau Ste. Michelle, Columbia Crest, and 14 Hands names; and imports and markets Antinori, Torres, and Villa Maria Estate wines, as well as Champagne Nicolas Feuillatte in the United States. In addition, it provides finance leasing services primarily in aircraft, electric power, railcar, real estate, and manufacturing industries. The company sells its tobacco products primarily to wholesalers, including distributors; large retail organizations, such as chain stores; and the armed services. Altria Group, Inc. was founded in 1919 and is headquartered in Richmond, Virginia.

mCig Company Profile

mCig, Inc. operates in the cannabis industry in the United States and internationally. The company operates through four segments: Cultivation, Manufacturing and Distribution (CMD); Retail Sales; Media and Technologies; and Agriculture. The CMD segment designs, develops, engineers, and constructs modular buildings and green houses that assist cannabis and herbal growers in the market, as well as offers consulting services in the cannabis industry. The Retail Sales segment engages in the retail, distribution, and online sale of electronic cigarettes, CBD products, and vaporizers, as well as supplies for cannabis distributors, growers, and dispensaries. The Media and Technologies segment operates 420cloud, a social platform for advertising services in the cannabis and cryptocurrency markets; and provides software solutions, Website development, and other social media services. The Agriculture segment is involved in planting and growing industrial hemp. mCig, Inc. offers financial and consulting services to cannabis and cryptocurrency markets. The company was formerly known as Lifetech Industries, Inc. and changed its name to mCig, Inc. in August 2013. mCig, Inc. was founded in 2010 and is headquartered in Las Jacksonville, Florida.

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