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Companies Alpha Corp. & Omega Inc. are direct competitors with the following characteristics: Alpha $45.00 200 million $265,000,000 $120,000,000 $1.20 1.85 Stock Price Total
Companies Alpha Corp. & Omega Inc. are direct competitors with the following characteristics: Alpha $45.00 200 million $265,000,000 $120,000,000 $1.20 1.85 Stock Price Total Shares Outstanding Annual Revenue (ttm) Net Income (ttm) Annual Dividend Beta Omega $70.00 150 million $160,000,000 $120,000,000 $0.30 1.10 a. Which company has a larger market value? Clearly show your calculations, b. Calculate the earnings per share (EPS) for each company: Alpha EPS: Omega EPS: c. Utilize the Trailing P/E ratio based on the data given above to determine which company has a cheaper relative valuation? Clearly show your calculations. d. Based solely on the information above, which company, if any, would you consider to be more risky from an investment point of view? Briefly justify your answer.
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