Whirlpool (WHR 5.97%) and Altria Group (MO +0.94%) have almost nothing in common. After all, the former is a maker of appliances like refrigerators and dishwashers, and the latter is a tobacco and related consumables manufacturer. But there's one facet of each of these stocks that's almost in lockstep -- both pay out a high-yield dividend above 7%.
Part of the reason for that is their stock performance right now is underwhelming. Given the generous dividend distribution though, it's worth taking a brief look at the pair to see which one might be more of a bargain.
Behind the high-yield dividends
Neither stock is in favor just now. There is some market concern that Whirlpool will be susceptible to a protracted trade war, and Altria's core product's popularity is in long-term decline.
Of the pair, though, Whirlpool is being more unjustifiably punished. The starkest illustration of this in the stock's valuation is its price-to-sales ratio, which currently stands at 0.31. Altria's is over 4.8.
Whirlpool's skinny number is the result of a significant share-price decline lately. While tariffs and threats of tariffs did spook some investors (as it's sure to raise prices for some key inputs), disappointing fourth-quarter earnings were also to blame. Both revenue and profitability guidance for full-year 2025 fell short of the consensus analyst estimates and helped land Whirlpool in the investor doghouse.
NYSE: WHR
Key Data Points
Not a hard choice to make
At least Whirlpool, with its generally well-reputed home appliances, isn't operating in an ever-shrinking industry. Altria's major challenge is the steep fall in the popularity of cigarettes, a lasting trend that almost certainly won't reverse.
Altria tries mightily to compensate for this, with price increases for classic cigarettes and a sustained push into alternatives, like vape products. Nothing is really sticking, though, and sales growth has been limited lately, at best. That lofty price/sales figure is entirely unjustified, given this.
To me, the clear choice between the two stocks is Whirlpool because its challenges seem more temporary than Altria's. The difference in the price-to-sales ratio is just too dramatic to ignore.
