Finance — create a table comparison with explanation

Students will use MorningStar to gather metrics/key ratios:

1. Profitability (OM, NM, ROE, ROIC)
   1. Do margins seem high for the industry as a whole?
   2. Analyze the profitability trends.
   3. Which company seems to be the most profitable and why?
2. Growth (Rev, OI, NI, OCF)
   1. Do the companies have higher growth rates relative to market/GDP?
   2. Analyze the growth trends.
   3. Which company seems to have the most potential and why?
3. Financial Health (CR, QR, FL, D/E)
   1. Does the industry have high overall risk and leverage?
   2. Analyze the leverage trends.
   3. Which company seem to be the most risky and why?
4. Efficiency (DSO, DSI, FAT, AT)
   1. Which metrics seems most important for your industry?
   2. Analyze the efficiency trends.
   3. Which company seems to be the most efficient and why?

Valuation (P/E, P/B, P/S, P/CF vs Industry vs SP500)

1. Do the valuation ratios seem high relative to history and the SP500?
2. Analyze the valuation trends.
3. Which company do you think are the cheapest and most expensive? Use your own analysis, insights in combination with the metrics

How would you allocate $100 to invest amongst the 3 companies?

Regarding individual research, each student will create:

1. Tables of comparison using the most recent AND last 3 year average history of ALL the above metrics (4 categories PLUS Valuation section)

2. Write a 2-3 page paper (800-1000 word max not including table, title or reference pages) highlighting 2 categories of metrics PLUS Valuation as to which companies are better. Answer the a/b/c questions, compare and contrast, analyze and draw your own conclusion. Valuation analysis should be included as well as how one should allocate $100 to the 3 companies.