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In the future, this could result in some kind of major restructuring to deal with these issues. The problem is that these changes will occur when the company is facing greater challenges. This will hurt their competitive position, profit margins, stock performance and brand image. The above information will impact an investor's decision, by making them more cautious about purchasing the company over the long-term. ("The Coca Cola Company," 2012) ("Pepsi Co," 2012)
As far as Pepsi Co is concerned, the management has taken a continuing focus on expanding into new areas. This has resulted in the company owning different food, beverage and snack manufacturers. In these situations, the firm is concentrating on the impact that key acquisitions will have on Pepsi and its ability to enter new markets. ("The Coca Cola Company," 2012) ("Pepsi Co," 2012)
This strategy has proven to be highly successful. As the company is able to reach out to consumers through the large variety of merchandise they are selling. This means that even if a customer selects a competitor's product. The odds are high that they will also choose another brand that Pepsi owns (only in a different area such as: food, snacks or dairy). This helps the firm to increase its profit margins and continue to promote themselves. These facts will assist investors in making an informed choice about future levels of growth and the firm's competitive position. ("The Coca Cola Company," 2012) ("Pepsi Co," 2012)
Based on your review of the financial data for each company, indicate the accuracy and reliability of the data for making investment decision. Provide support for your conclusion.
All sources of information are accurate and reliable. This is because it was collected from data that is filed in accordance with the Securities and Exchange Act of 1934. This requires that all firms must submit information which has been certified through an independent auditor. (Dravis, 2007)
Moreover, the Sarbanes-Oxley Act of 2002 forces all CEOs / CFOs to certify that the data and statements are factually accurate. These laws are evidence of how the information on both firms is complete. Otherwise, anyone who knowingly misleads the public can be charged criminally under this statute. (Dravis, 2007)
Recommend which company you consider as the better investment for your client and how you will present your recommendation. Support your recommendation with data from your analysis.
The company that is the better investment is Pepsi Co. This is because the firm is diversified in a number of industries and markets. These factors are allowing the corporation to reach out to a larger demographic of consumers and adapt with any changes. Evidence of this can be seen by comparing the earnings results for Pepsi Co with Coca Cola during the last year. What makes Pepsi a compelling buy, is the fact that they have consistently increasing earnings and are always seeking to enhance these numbers. The below table is demonstrating this by contrasting the earnings per share of Pepsi and Coke for 2012. ("The Coca Cola Company," 2012) ("Pepsi Co," 2012)
Pepsi Co vs. Coca Cola Earnings per Share
("The Coca Cola Company," 2012) ("Pepsi Co," 2012)
These figures are showing how Pepsi Co has greater earnings and more consistency in their numbers. This is directly related to the business model and strategies they are utilizing.
The results are highlighting how the firm is more diversified and is rapidly expanding into growing markets. In the future, this will contribute to above average growth rates and an increase the dividends received by investors. This is the point that their total returns will be higher by purchasing Pepsi Co over Coke. ("The Coca Cola Company," 2012) ("Pepsi Co," 2012)
The Coca Cola Company. (2012). Yahoo Finance. Retrieved from: http://finance.yahoo.com/q/pr?s=KO+Profile
Pepsi Co. (2012). Yahoo Finance. Retrieved from: http://finance.yahoo.com/q/pr?s=PEP+Profile
Pepsi Co Concludes. (2011). Seeking Alpha. Retrieved from: http://seekingalpha.com/article/293068-pepsi-concludes-wimm-bill-dann-buy-in-largest-ever-foreign-acquisition-of-russian-company
Bell, L. (2003). The Story of Coca Cola. North Mankato, MN: A +
Cramer, J. (2005). Jim Cramer's. New York, NY: Simon and Schuster.
Dravis, B. (2007). The Role of Independent Directors. Chicago, IL: ABA.…[continue]
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S.-based and each accounts for approximately 8% of the sector. Knowledge is power in today's business world and where power goes, manipulation can't be far behind. Not a day goes by without talk of a new merger, acquisition or initial public offering (IPO) career in the securities industry can offer exciting work if you enjoy working in a competitive and demanding atmosphere. Investment bankers, stock brokers, and stock traders all make
Harley-Davidson Retail Sales and Deliveries Source: Seeking Alpha (2007) Over the past four years, account receivable growth has outpaced sales and the result is there is more inventory on dealer's lot than at any time in the history of HOG. The analysis states: "If the additional dealer inventory build was taken out of Harley's EPS from the previous two years and shipments evenly distributed throughout the quarters then Harley would have reported
74). This dearth of information was likely caused by a reluctance to examine investment decisions on the part of investors themselves; nobody likes finding out that their "thought-out" considerations are not any more accurate than gut choices, and in fact, those gut choices likely had more influence than all of their mental work. In the last decade, however, strides have been made in the study and analysis of investment behavior, revealing
However, it will depend upon the impact that rising prices will have on consumer spending and corporate balance sheets. Geopolitical tensions could have an impact upon the price of commodities most notably: oil and gold. As various uncertainties around the globe, could have an impact upon the availability of oil supplies, which will cause prices to increase. A good example of this can be seen with the different protests that
The quest for cheaper prices is pushing manufacturing jobs offshore and affecting the jobs of Americans. This is the trade off involved in globalization. Bibliography 1) Wal-Mart, 'About Us', retrieved Oct 15th 2010, from, http://walmartstores.com/AboutUs/ 2) Suzanne Kapner, (2009), 'Changing of the Guard at Wal-Mart', retrievd Oct 15th 2010, from, http://money.cnn.com/2009/02/17/news/companies/kapner_scott.fortune/index.htm 3) Michael Barbaro, (Mar 2006), 'Wal-Mart shows a Similar Side to Sears', New York Times, retrieved Oct 15th 2010, from, http://www.nytimes.com/2006/03/31/business/media/31adco.html?_r=2 4) Michael
McQueen's research in 1990 demonstrates just how little progress has been made. McQueen noted in 1990 that, "Pakistan has had consistent growth averaging 6.7% over the last decade, placing it among the fast-growing third-world economies. Some apprehension exists regarding deterioration in the law and order situation in Sindh Province, where in recent months ethnic and politically motivated violence has claimed a number of lives and slowed industrial activity. Regionalism, ethnic
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