'Good' and 'Bad' Stock Picks

Updated from 9:14 a.m. EDT

Many investors want to invest "good" in addition to investing well, meaning that they want to hold stocks in companies that are deemed socially responsible and are not involved in industries that violate their religious, moral or ethical beliefs. But other investors have no qualms about investing in companies involved in the manufacture of firearms and other weapons, cigarettes, alcoholic beverages, gambling or whose businesses may violate human rights or damage the environment -- so long as the businesses make money.

Stockpickr tracks portfolios on both ends of the spectrum -- the Vice Fund and the Ave Maria Catholic Values Fund.

Profiting From 'Vice'

First, the "bad." The Vice Fund is a long-term capital growth fund that has generated an average annual return of more than 20% over the last five years. Stocks it owns include Altria Group (MO Quote), which recently spun off cigarette manufacturer Philip Morris International (PM Quote). Altria has a forward price-to-earnings ratio of 11.6 and a P/E-to-growth ratio of 1.3. Philip Morris shares offer a forward P/E of 14 and a PEG of 1.4. ...