2023 Investment Showdown: Altria vs. Japan Tobacco – Who Will Come Out On Top?

March 3, 2023

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2023 is shaping up to be a showdown between two giants of the tobacco industry: Altria and Japan Tobacco ($TSE:2914). Both companies have seen tremendous growth over the past few years, and both appear to be in prime position to capitalize on the enormous potential of the tobacco market. In a recent agreement between Altria and Japan Tobacco, JAPAY’s Heated Tobacco Stick Ploom X will be sold in the US, making the competition even more fierce. The question remains: which stock should investors buy in 2023? A close comparison of the two companies reveals some important differences. On the one hand, Altria has been a powerhouse in the tobacco industry for decades and is known for its brand recognition and loyalty. The company’s deep pockets have enabled it to acquire vast amounts of resources, making it an attractive option for investors looking for long-term growth.

On the other hand, Japan Tobacco is a relative newcomer to the US market, but it has already made a name for itself with its cutting-edge innovation. Ploom X is just one example of Japan Tobacco’s technology-driven products, and its success could ensure long-term success in the US market. It’s clear that both companies have a lot to offer investors in 2023. Altria has proven itself to be a reliable and profitable investment in the past, while Japan Tobacco is pushing the boundaries of innovation. Ultimately, the decision comes down to individual investor preference. While Altria may be a safer option for those looking for stability, those looking for the potential for high returns should consider Japan Tobacco.

Price History

As of Friday, sentiment has been mainly positive for Japan Tobacco. On Friday, Japan Tobacco stock opened at JP¥2777.5 and closed at JP¥2796.5, up by 0.8% from the last closing price of 2773.5. This marks a positive trend for the company and could indicate a higher potential for investor returns in the near future. The 2023 Investment Showdown between Altria and Japan Tobacco will be an interesting one to watch.

With both companies having significant market presence, their respective stocks are expected to perform well in the near future. Both companies have strong financials, with Japan Tobacco having a particularly strong presence in the Asian markets. With different strategies to contend with, it will be interesting to see which company comes out on top in the long-run. Live Quote…

About the Company

  • Industry Classification
  • Key Executives
  • Ownership (Institutional/ Fund Holdings)
  • News Feed
  • Income Snapshot

    Below shows the total revenue, net income and net margin for Japan Tobacco. More…

    Total Revenues Net Income Net Margin
    2.57M 403.48k 15.7%
  • Income Statement Reports (Yearly/ Quarterly/ LTM)
  • Income Supplement
  • Growth Performance
  • Cash Flow Snapshot

    Below shows the cash from operations, investing and financing for Japan Tobacco. More…

    Operations Investing Financing
    513.6k -97.38k -419.17k
  • Cash Flow Statement (Yearly/ Quarterly/ LTM)
  • Cash Flow Supplement
  • Balance Sheet Snapshot

    Below shows the total assets, liabilities and book value per share for Japan Tobacco. More…

    Total Assets Total Liabilities Book Value Per Share
    6.73M 2.86M 2.07k
  • Balance Sheet (Yearly/ Quarterly)
  • Balance Sheet Supplement
  • Key Ratios Snapshot

    Some of the financial key ratios for Japan Tobacco are shown below. More…

    3Y Rev Growth 3Y Operating Profit Growth Operating Margin
    5.7% 4.1% 24.1%
    FCF Margin ROE ROA
    16.3% 10.4% 5.7%
  • Income Statement Ratios
  • Balance Sheet Ratios
  • Cash Flow Ratios
  • Valuation Ratios
  • Other Ratios
  • Other Supplementary Items
  • Analysis

    At GoodWhale, we recently conducted an analysis of JAPAN TOBACCO‘s financials, and our results show that this company is classified as a ‘rhino’ – an entity that has maintained moderate growth in earnings or revenue. This means that JAPAN TOBACCO may be an attractive proposition for investors who are looking for a dependable company with a track record of steady growth, and one which is likely to remain successful in the future. Furthermore, our analysis shows that JAPAN TOBACCO has a very high health score of 9/10 considering its cash flows and debt, meaning that it is capable of weathering any crises without the associated risks of bankruptcy. JAPAN TOBACCO is especially strong in terms of dividend, profitability, and medium in terms of asset and growth. Overall, this makes JAPAN TOBACCO a relatively safe investment option for investors who are looking for a conservative approach to their financial goals. More…

  • Risk Rating Analysis
  • Star Chart Analysis
  • Valuation Analysis


  • Peers

    The competition in the tobacco industry is fierce, with Japan Tobacco Inc. (JTI) competing against major players such as Nissin Foods Holdings Co Ltd, Kikkoman Corp, and Nestle SA. These companies are all trying to gain market share and establish themselves as the leading tobacco brand in the region. JTI, in particular, has invested heavily in research and development to produce new products and stay ahead of its rivals.

    – Nissin Foods Holdings Co Ltd ($TSE:2897)

    Nissin Foods Holdings Co Ltd is a leading food and beverage company in Japan. Founded in 1948, the company produces a wide range of instant noodles, frozen food, and other food items. As of 2023, Nissin Foods Holdings Co Ltd has an impressive market cap of 1.01T and a Return on Equity (ROE) of 7.41%, demonstrating the strong financial performance of the company. Nissin Foods Holdings Co Ltd has continued to grow and expand its product portfolio over the years, offering customers a wide selection of food products across Japan and around the world.

    – Kikkoman Corp ($TSE:2801)

    Kikkoman Corp is a Japanese food manufacturer, best known for its soy sauce products. Founded in 1917, Kikkoman has grown to become a major player in the global food industry. As of 2023, it has a market cap of 1.3T and a Return on Equity of 11.51%. This indicates that the company is performing well and maximizing its profits. The company’s success is attributed to its focus on bringing high-quality products to the market and its commitment to providing excellent customer service.

    – Nestle SA ($BER:NESM)

    Nestle SA is a multinational food and beverage company based in Switzerland. As of 2023, the company has a market cap of 300.52B, making it one of the largest food and beverage companies in the world. Nestle’s Return on Equity (ROE) is also impressive at 14.82%, meaning it has been able to effectively utilize its resources to generate a high return for its investors. The company is best known for its wide range of products, including coffee, dairy products, chocolate, and many more.

    Summary

    Japan Tobacco (JT) is a publicly-traded company that is the world’s largest tobacco manufacturer, behind only Philip Morris in terms of market share. Therefore, all things considered, investors should consider JT as a long-term growth opportunity.

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