Philip Morris grows with smoke-free products; Altria struggles with declining core and costly failures.

Philip Morris International showed strong growth in 2025, with smoke-free products making up 41.5% of revenue and brands like IQOS and ZYN expanding significantly. The company restructured to focus on smoke-free and combustible segments and aims for solid revenue and EPS growth through 2028. Meanwhile, Altria faced setbacks with a $2.2 billion impairment on NJOY and declining market share for its nicotine pouch brand on!, alongside a 10% drop in Marlboro cigarette volume. Altria's high dividend yield is supported by limited free cash flow, raising concerns about sustainability. Philip Morris offers lower yield but stronger growth prospects and better cash flow coverage, making it the more robust choice for investors seeking growth and dividend safety.