You are hereWhy should we buy KFT vs MO?

Why should we buy KFT vs MO?


Srikorada's picture

By Srikorada - Posted on 27 January 2009

What the thesis for buying KFT. Is it just because Buffett bought it? I'm attaching a file here for both KFT and MO

Profitability
10 yr Valuation
Cash flow statements

Right now MO trades for the historic lows and has twice as much yield for half of the price of KFT. Is there a reason this stokc is not going to get back to it's averages. MO is dead cheap now giving almost 12% earnings yield and 10% dividend with 60% ROE and 15% ROA.

Except a legal battle it is up against, I don't see any reason why MO will not make money for an investor.

What is so special about KFT?

Please challenge my thinking. I'm curious to know what you guys think.

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