Company Analysis : General Motors And Ford Motor Company

1184 Words Dec 1st, 2016 5 Pages
Corporation Analysis: General Motors and Ford Motor Company are one of the top two companies in the motor industry every year. But with every great company it will have it’s ups and downs and with the ratios we have for both companies it will be easier to explain the performance of both companies in depth. The price ratio helps us better understand the future outlook of a company’s stock. And with the Beta it helps us measure the risk of the stock in the company. With both companies there PE ratio fall to the industry average means that they are expected to have a rise in their stock in the future which isn’t necessarily a bad thing. The Beta for the industry average is around 1.41 and if your company has more than that it would be considered a higher risk but with a higher reward, vice versa if your number is lower it has lower risk with little reward. The Beta for GM was 1.42 which means that investing in this company would be more of a risk but in the end it could come with a greater reward. Then with Ford their Beta lies below the line which means their company is low risk low reward. So when picking a company off of this data one would choose GM most likely due to high risk high reward. The next set of ratios are the growth rates which helps describe the profitability of the company, and chances of paying off past debts. The rate of sales for GM is greater than the industry average coming in at 10.20%, while the rate for Ford is drastically below the industry average…

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