Head-To-Head Analysis: Imperial Tobacco Group (OTCMKTS:IMBBY) & Swedish Match AB (publ) (OTCMKTS:SWMAY)

Swedish Match AB (publ) (OTCMKTS:SWMAY) and Imperial Tobacco Group (OTCMKTS:IMBBY) are both large-cap consumer staples companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, profitability, institutional ownership, valuation, earnings and dividends.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Swedish Match AB (publ) and Imperial Tobacco Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Swedish Match AB (publ)	0	0	0	0	0.00
Imperial Tobacco Group	0	2	0	0	2.00

Volatility and Risk

Swedish Match AB (publ) has a beta of 0.41, meaning that its stock price is 59% less volatile than the S&P 500. Comparatively, Imperial Tobacco Group has a beta of 0.29, meaning that its stock price is 71% less volatile than the S&P 500.

Insider and Institutional Ownership

0.0% of Imperial Tobacco Group shares are owned by institutional investors. 1.0% of Imperial Tobacco Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Swedish Match AB (publ) and Imperial Tobacco Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Swedish Match AB (publ)	30.27%	-135.79%	34.22%
Imperial Tobacco Group	N/A	N/A	N/A

Earnings and Valuation

This table compares Swedish Match AB (publ) and Imperial Tobacco Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Swedish Match AB (publ)	$2.16 billion	7.48	$724.90 million	$0.44	24.02
Imperial Tobacco Group	$42.02 billion	0.64	$2.70 billion	N/A	N/A

Imperial Tobacco Group has higher revenue and earnings than Swedish Match AB (publ).

Dividends

Swedish Match AB (publ) pays an annual dividend of $0.12 per share and has a dividend yield of 1.1%. Imperial Tobacco Group pays an annual dividend of $2.16 per share and has a dividend yield of 6.2%. Swedish Match AB (publ) pays out 27.3% of its earnings in the form of a dividend.

Summary

Imperial Tobacco Group beats Swedish Match AB (publ) on 8 of the 12 factors compared between the two stocks.

About Swedish Match AB (publ)

Swedish Match AB engages in the manufacture and trade of lighters and tobacco products. It operates through the following segments: Snus and Moist Snuff; Other Tobacco Products; Lights; and Other Operations. The Snus and Moist Snuff segment produces and markets smokeless cigarettes. The Other Tobacco Products segment manufactures and sells chewing tobacco and cigars. The Lights segment develops and trades matches, lighters, razors, batteries, light bulbs, and toothpicks. The Other Operations segment consists of corporate and Swedish distribution functions.The company was founded in 1992 and is headquartered in Stockholm, Sweden.

About Imperial Tobacco Group

Imperial Brands PLC, together with its subsidiaries, manufactures, imports, markets, and sells tobacco and tobacco-related products in Europe, the Americas, Africa, Asia, and Australasia. It offers a range of cigarettes, tobacco accessories, vapour, heated tobacco, and oral nicotine. The company sells its products under various brands, including JPS, Davidoff, Gauloises, West, Winston, Kool, Lambert & Butler, Fortuna, Nobel, News, Backwoods, Champion, Golden Virginia, Rizla, Blu, Pulze, Skruf, and Zone X. In addition, it engages in the distribution of tobacco and NGP products for tobacco and NGP product manufacturers; and various non-tobacco and NGP products and services. Further, the company is involved in the management of a golf course; distribution of pharmaceuticals, POS software, and published materials and other products; printing and publishing activities; and provision of long haul transportation, industrial parcel and express delivery, pharmaceutical products logistics, advertising, payment, and support management services, as well as owns the trademarks; and retails its products. Additionally, it engages in distribution of books; waste management, leaf processing related activities. Furthermore, the company is involved in research and development of e-vapour products. The company was formerly known as Imperial Tobacco Group PLC and changed its name to Imperial Brands PLC in February 2016. Imperial Brands PLC was founded in 1636 and is based in Bristol, the United Kingdom.