Choose a pair of companies from the list below and write an analysis of why you would invest in the common stock of one company over the other.
- Apple vs. Microsoft
- Goldman Sachs vs. Morgan Stanley
- Lowe's vs. Home Depot
- Coca-Cola vs. Pepsi
- GE vs. United Technologies
- McDonald's vs. Wendy's
Your analysis must begin with a financial ratio presentation and assessment of the two companies. Describe what each of the ratios mean. The ratios should include ROE decomposition and other profitability ratios, turnover and other asset utilization ratios, liquidity ratios, and market price ratios. Moreover, your evaluation must make use of at least one other valuation model presented in the primary textbook. Retrieve all your company financial information from sources such as EDGAR or other online sources listed in the library guide (Supplemental Resources) and textbook. Use both quantitative and qualitative analysis. In your assignment submission, show all your inputs and outputs to your models to justify your investment selection.
Support your analysis with at least three (3) resources. In addition to these specified resources, other appropriate scholarly resources, including older articles, may be included. Your analysis should demonstrate thoughtful consideration of the ideas and concepts that are presented in the course and provide new thoughts and insights relating directly to this topic. Your response should reflect scholarly writing and current APA standards. Be sure to adhere to Northcentral University's Academic Integrity Policy.
Length: 5-7 pages (not including title and reference pages)