Better Bear Market Buy: Coca-Cola vs. Altria
Coca-Cola (NYSE: KO) and Altria (NYSE: MO) are both often considered good defensive plays for bear markets. Both consumer staples giants boast wide moats, generate stable profits, and pay high dividends -- all of which are attractive qualities as investors rotate away from riskier investments.
So should investors buy either of these blue-chip plays as rising rates drag the S&P 500 into a new bear market? Let's review their business models, growth rates, and valuations to find out.
Coca-Cola and Altria sell different kinds of products, but they both face secular headwinds in their respective markets. Coca-Cola has been grappling with slower sales of its flagship soda and other carbonated drinks as customers pivot toward healthier drinks. Altria, the top tobacco company in America, has been struggling with declining smoking rates, rising excise taxes, and stiff competition for its flagship Marlboro cigarette brands.
Source Fool.com
