You must submit a short report memorandum to the company CEO and make an oral presentation at the company strategy meeting, explaining which of the two companies is the financially stronger. In addition, for each financial metric analyzed, explain the reason for the company’s performance, and provide support for your reasoning.
The following five key financial metrics must be use in your analysis:
- Stock price – 1 year, 6 month, end of day (Use on or about February 7, 2018 as the present date)
- Calculate stock price growth for both companies using percentage change and then compare it
- Revenue (over the last three full-years)
- Calculate revenue growth for both companies using percentage change and then compare it
- P/E Ratio – Price to Earnings Ratio — can show whether a company is over or undervalued
- Compare the PE ratio for each company and/or the industry standard
- Net Income (over the last three full-years)
- Calculate net income growth for both companies using percentage change and then compare it
- EPS — Earnings Per Share – can show a company’s profitability for investors
- Compare EPS for each company
N.B. See attachment for full instructions
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