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

Core Insights - Altria has transitioned into a primarily tobacco-focused company, while Philip Morris International has a more diversified and stronger business model [1][4] Market Share and Brand Performance - Altria's flagship brand, Marlboro, holds a 41% market share in North America, contributing to an overall market share of approximately 45% when including smaller brands [3] - Marlboro has recently lost market share, indicating a decline in Altria's competitive position [5] Business Operations and Challenges - Altria's cigarette volume fell by 13.7% in Q1 2025, continuing a long-term downward trend, which is impacting its business significantly [5][6] - The company has faced substantial financial missteps, resulting in billions of dollars in write-downs, highlighting its struggles in adapting to market changes [6] Comparison with Philip Morris - Philip Morris has shown resilience, with cigarette volumes increasing in foreign markets during the same period, leading to a 0.4-percentage-point market share gain [7] - Philip Morris's non-cigarette operations are thriving, generating 42% of its revenue and 44% of its profits in Q1 2025, with strong performance in vapes and pouches [8] Investment Considerations - Investors in Altria are betting on the company's ability to pivot towards non-cigarette businesses, while Philip Morris is currently seen as the stronger investment option due to its successful execution and market performance [9]