ipl-logo

Comparison Of Wal-Mart And Amazon Stock

1105 Words5 Pages

Other financial information that would be important to the client in his decision making process would be: historical price of the stock, the current price of the stock, the stock’s historical growth rate, as well as the standard deviation. By analyzing the historical value of a stock, you can compare the stock’s current value to its historical value to see if the stock is currently above/below where it historically has been. Both the Wal-Mart and Amazon stock is currently priced above its respected historical average. This can mean one of two things, either: the stock is currently overvalued and will be falling back to the historical average in the future or the company is expanding/growing and this growth is resulting in the company being …show more content…

As outlined by Investopedia, “standard deviation for a stock is the dispersion of a set of data from its mean”. This means, standard deviation will tell you how widely a set of data (stock prices) varies within a particular time frame. A large standard deviation means a wide dispersion and therefore means a more volatile stock. Conversely, a small standard deviation means a small dispersion and therefore a very stable stock. Analyzing the stocks above, Wal-Mart has a standard deviation of 7.01 which is low and shows stability within the stock. Conversely, the Amazon stock has a standard deviation of 214.35 which shows volatility within the stock and hence the higher growth rate. Along with the financial information already reviewed above, there are many other ratios that can be analyzed in order to make a more informed decision on which stock to choose. Some of these ratios are: current ratio, asset ratio, net profit ratio, quick ratio, earning per share ratio, and price earnings ratio. Each of these ratios will help to provide insight into the organization and help the potential investor make a more informed decision on whether or not to invest in the …show more content…

The formula for net profit ratio is net income divided by net sales. The higher the net profit ratio the better the organization is doing to turn sales into profitability. The net profit ratio for Wal-Mart is .58 and Amazon’s net profit ratio is .30. This means that Wal-Mart’s ability to make a profit from each sale is greater than Amazon’s. What is surprising is how Wal-Mart’s net profit ratio is twice as much as Amazon’s, which technically means they are twice as profitable on a per sale

Show More
Related

Comparison Of Office Depot And Staples

680 Words | 3 Pages

The Net Profit Margin Ratio denotes the percentage of revenue that is shown in net income after subtracting expenses. Staples saw an increase of 1.2 in this ratio from 2014 to 2015. Office Depot had a ratio of -2.19 in 2014 which increased to a small, positive ratio of 0.06 in 2015. The Gross Profit Percentage ratio demonstrates how much profit was made through each dollar of sales after you subtract the cost of goods sold. Staples had a ratio of 25.79 in 2014 which increased to 26.18 in 2015.

Read More

Financial Analysis Of Target Corporation 2013-2014

663 Words | 3 Pages

With Target debt to asset ratio shows higher than Walmart this show that Target sell their product at a higher price to their customer versus their competitors Walmart. Target asset show .90 compared to Walmart .80 in every dollar and the debt to asset ratio is higher because of their lower equity “buffer” to creditors if the corporation becomes insolvent (www.sec.gov). Target profit margin of 4.48% indicates the company success and Walmart 3.60% show their focus strategy is discount prices and Target chose product and customer satisfaction

Read More

P1 Unit 8 Financial Ratios

280 Words | 2 Pages

Unit 8 Journal The financial ratios are mathematical ratios to help the shareholders and investors to understand the business’ financial position. These ratios also help to compare with other companies across industries. There are various financial ratios: 1) Profitability ratios. There are five profitability ratios: Gross margin, profit margin, return on assets, return on common shareholders’ equity, and earning per share. The profitability ratios are used to evaluate a business’s ability to generate earnings compared to its expenses and costs incurred during a specific period.

Read More

Nike Stock Research Paper

1343 Words | 6 Pages

I then had to go back and look at the prices and it actually helped me to see the increases and decreases in the value of the stock. I wasn't expecting to have such a drastic difference in each of my stocks values but it happened and i'm glad because it helped me to see the cause of a growing business on value and popularity, Through class i knew that company will split their stock once it got so high but when i look at amazon's prices i was shocked. I look further into it and found out that they have such a high value because they are a growing business taking over the buying and selling world. They can demand so much because they know their worth and are willing to capitalize on it. My other to stocks were not as high in price but not as good of an

Read More

Mariam & Company Financial Ratios

1083 Words | 5 Pages

The founder of a new business may not be a financial expert. A startup often requires a loan, and investors usually require extensive financial data before they will even consider granting one. To evaluate and assess if the company financial statement we will need all the company data. The data is used to calculate financial ratios over a period of time in our case 2 years, this will grant us the possibility to describe the health of the business and the risk it presents to investors. Financial ratios highlight developments and variance by simplifying data into key indicator and they enable the banker to make relative comparisons of firm performance over time

Read More

Walmart Target And Dollar General Stock Analysis

426 Words | 2 Pages

Introduction: In our group project, we will do the stock evaluation of Wal-Mart, Target and dollar general. The reason we choose these three companies is because all of them are the famous discount retailing chain in U.S. and making the huge revenue in the industry. Meanwhile, in our opinion, these three companies can perfectly represent the different size of company, such as Wal-Mart for super-big, Target for big and dollar general for medium. Target and dollar general both are famous and big size companies, but we define them in big and medium size because of the size of Wal-Mart. We purposely choose these three publicly traded companies with the similar background to better identify the stock performance and competitive advantage that

Read More

Financial Ratio Analysis: Square Inc.

1217 Words | 5 Pages

There are a variety of ratios that can be used when trying to make an investment decision. While looking at numbers should not be the only determining factor of your decision it is still crucial to analyze certain ratios to gain a better understanding of the stock and company’s performance. In order to better understand Square Inc.’s company health, we’ve calculated different profitability, liquidity, solvency and valuation ratios. Profitability ratios are used to give us an idea of how likely it is that a company will turn a profit, as well as how that profit relates to other important information about the company. Starting with profit margin, SQ is calculated to have a -2.84% profit margin.

Read More

Walmart's Five Year Stock 2012

296 Words | 2 Pages

As can be seen in the 5 year stock chart below (Figure 5), Wal-Mart’s stock started off stronger than the Dow Jones if we compare it in 2012. Towards the rest of the year, one begins to see that percentage wise, Wal-Mart begins to flirt with the rest of the market as it enters a slight downward trend. In the beginning of 2013, the markets take off, bypassing Wal-Mart and never looking back. Comparing Wal-Mart to it’s competitors like Target and Costco in 2012, one may see that all three stocks were relatively competitive. Once they entered 2013, Costco begins to pull away from the rest of the companies because of great PR and strong numbers in inventory sales and membership registrations (The Montley Fool).

Read More

Analyzing Financial Ratios Paper

849 Words | 4 Pages

The three factors that would influence my evaluation as to whether a company’s current ratio is good or bad are : A. the type

Read More

Financial Ratios Across Different Industries

438 Words | 2 Pages

Therefore when it comes to analyzing performances there will be a different in their financial ratios. If we take the food and drink ratio table, it will include companies that make prepared foods and some that are providers. The ratios in this case would be

Read More

Amazon Data Analysis Paper

417 Words | 2 Pages

Amazon is one of the most attractive company in the world for people to work especially in my field. After I read its annual reports, I chose those three tables that reflect different data in three years. According to Amazon, the tables are Net Sales, year by year percentage of growth, and operating expenses. According to Amazon, this table reflects data for Amazon in three different years which are 2014, 2015, and 2016. Net sales in million for North America and International by December 31 for three years.

Read More

Financial Ratio Analysis Paper

2071 Words | 9 Pages

Making sense of financial statements can be a difficult task for the average investor, however, with quantitative analysis of the information, many financial ratios can assist in analylising the company to determine its strengths and weaknesses to understand how the business is performing and where improvement is warranted. The ratios don't take into account the size of the business or the specific sector or industry involved, so comparions with any other company can be made. The table above lists a selection of these financial ratios over a 5 year period, and each of these listed ratios will be interpreted. Return on Average Assets

Read More

Before Buying A Stock Research Paper

986 Words | 4 Pages

Stock Price. The price of a stock can tell you a lot about it and whether or not the company is a good investment. You need to look at the price history of the stock. There is no stock that rises only and never falls. Check to see how the stock has done over an extended period of time; not just what it is doing currently.

Read More

Walmart Is The Biggest Threat To Amazon

159 Words | 1 Pages

Competition really depends on what business sector of Amazon was being considered. Apple would be the largest competitor when considering book or content related delivery such as books, movies, magazines, and audiobooks. The iTunes store will always be a threat to the amazon store as well as their devices like the iPad, iPhone, and MacBook. When considering web services Google would emerge as the largest competitor. Wal-Mart is the biggest threat to Amazon as reports roll in of various attempts to compete with the large online retailer.

Read More

Standard Deviation Statistics

539 Words | 3 Pages

Standard deviation is very useful for the proper interpretation of research and data. It is the most widely used indicator to measure how spread out a data set is. A high standard deviation indicates scores are spread out. A low standard deviation means they are close on either side of the mean. This essay will explain what standard deviation is and the importance it plays in statistics.

Read More

More about Comparison Of Wal-Mart And Amazon Stock

Open Document