Relative Performance Analysis Paper

The four stocks diversified across different industries that I have chosen are McDonald’s, Target, Honda Motor Co., Ltd., and Whole Foods Market. After researching each stock using Mergent Online you can see my findings in the above chart. When looking at the P/E ratio of the chosen stocks I believe that each of them varies from being underpriced, fairly priced, or overpriced when compared to the peer and the industry as a whole for each. For McDonald’s I feel that this stock is fairly priced. Yesterday the stock price was 158.90 and 30 days ago it was 153.96 and the P/E ratio is 26.0492 and if I purchased 100 shares I would have a 3.2% share return. This would mean that the company’s growth looks good and the P/E ratio is fairly priced we have to continually look at the interest rate, stability of the firm, and expected growth.

The United States stock market has experienced many interesting events this year, testing the nerves of millions of people around the world. The market started the year with the worst two-week performance in its history, creating a lot of uncertainty for the year to come. A severe decline in oil prices caused many firms within the energy industry to suffer. However, despite these negative events, gold saw its best quarter in 30 years, the market had a large reversal, and oil has been recovering. These volatile movements provided an amazing opportunity to make money for investors, relief for those who had holdings during this time, and a better outlook for firms. Two firms that have had an interesting year so far are ExxonMobil Corp. and Apple Inc. Exxon has experienced the effects of macroeconomic variables, while Apple has had some internal issues that lead to some stock price fluctuations.

The purpose of this company analysis is to discover why one company would be better to invest in over the other. The analysis is based on two competing companies within the same industry. While these two companies compare in products and services, they do not relate in overall size. To assist in making an educating decision, many areas of each company were looked at. A comprehensive financial ratio analysis was completed for each company, as well as an evaluation of their strengths, weaknesses and future opportunities. While it is important to consider how a company manages its finances, it is equally important to consider its future prospects as well. Below you will find a brief description of each company, and an

Zack’s recently downgraded the share price from a buy to a hold, while analysts at Canaccord Genuity continue to keep a buy rating on the stock with a price target of $27 per share. Out of five analysts polled, four of the five place a buy recommendation on the stock with a price target of $26 to $27 per share.

have experienced persistent volatility and sustained decreases over the years. In comparison with its industry peers like Verizon Inc., AT&T Inc. and T-Mobile Inc., Sprint’s stock performance is significantly poorer. A stock comparison with the listed major competitors reveals that Sprint Corp. has the lowest current share price of $4.53 (6/10/15, 9 am) that is merely 11% of the above mentioned category average. With a market beta over of 1.14 signifying volatility, the corporation has negative current earnings per share of $ -0.84 denoting company’s deteriorating profitability.

Recognition Rate (RR): This is the amount of the possibility that the system recognizes a face correctly that is among the trained faces or rejects a face not among the trained faces, that is summation of the true positive and true rejection divided by the total number of test attempts. In this work we term the True Positive (TP) as the the correct number of people the system is able to truly identify when the real probe set (44 images) is used and True Rejection is the number of people the system rejected as not identified when any of the unknown images are used. Mathematically, it is calculated as (Chukwuradibia, 2015).

We recommend a buy or long position on the Comcast Corporation with a target price of $64.19. By applying the discounted cash flow method, Comcast shows prevailing real value of $62.87. With a current price of $59.64 as of April 24, 2015, the firm appears to be undervalued.

Wk High $55.01 52 Wk Low $46.42 Market Cap (in billions) $206.637 Dividend/ Share $1.09 Earnings/Share $3.72 Beta 0.655 Table 1. Stock Overview -up with the price of $60.19

$2.51. Often investors are willing to pay a Premium for a company that has a high dividend or

Prevailing Yields on US Government Securities (August 31, 1997) Annualized Yield to Maturity 3-Month T-BiIls 1-Year Bonds 5-Year Bonds 10-Year Bonds 20-Year Bonds 30-Year Bonds 5,24% 5,59% 6,22% 6,34% 6,69% 6,61%

The dividends are expected to grow at a rate of 5.8% per year into the foreseeable future. The price of this stock is now $25.18.

Another option is to use data for small companies in order to match the high return and high risk nature of Ameritrade. Although Ameritrade’s investment may make it more risky than the average large company, the beta we have chosen already reflects that higher risk. Therefore, we have chosen to use the market return for large companies because it more accurately depicts an overall picture of the stock market and Ameritrade’s status as a large firm. After subtracting the chosen risk-free rate of 5.24% from the average large company market return of 14.0%, we estimated the market risk-premium to be 8.76%.

The earnings, dividends, and stock price of Shelby Inc. are expected to grow at 7% per year in the future. Shelby’s common stock sells for $23 per share, its last dividend was $2.00, and the company will pay a dividend of $2.14 at the end of the current year.

Among the myriad of technology companies now available for investment on the stock market, Google’s new parent Alphabet and the ever-innovating Apple Inc. maintain their spots as two of the most popular. The two titanic companies have previously had a sizeable gap between the values of their stocks, with Apple Inc. leading Alphabet thanks largely to its massive deposits of cash. USA Today analyst John Shinal asserts that because of this more rapid growth, Alphabet is the ideal investment over Apple Inc. for investors who favor growth stocks while Apple Inc. is preferred for its dividend payouts. Shinal’s assertion is presented in a very formal manner with few detractors, giving his analysis a larger feeling of credibility even without prior knowledge of his credentials.

Given that the company is looking at a valuation of over Rs 5,200 crore (~$1.05 billion) at the upper end of the price band, it is seeking a PE multiple of around 18 times its trailing net profit on an annualised basis. For the nine months ended December 31, 2011 MCX had total income of Rs 474 crore and net profit of Rs 220