Question
Imagine you had $50,000 that you wanted to invest in a stock. And you had to choose between the two companies above, Intel Corporation for
Imagine you had $50,000 that you wanted to invest in a stock. And you had to choose between the two companies above, Intel Corporation for Advanced Micro Devices.
[Remember, a stock (also known as equity) is a security that represents the ownership of a fraction of a corporation. This entitles the owner of the stock to a proportion of the corporation's assets and profits equal to how much stock they own.]
--Intel Corp (INTC) and Advanced Micro Devices Inc. (AMD) have been competitors in the microprocessor industry for over 50 years.
For more of the history between these companies, see: https://bit.ly/354FLcg
You will go online and do some very basic Corporate Finance research, get some information, and then explain which company you would choose to invest your money in.
Here are things you can compare for both companies, you may use all or some of these:
i. ROE ii. ROA iii. Profit Margin (as a percentage) iv. Gross Profit Margin (as a percentage) v. Current Ratio vi. Revenue Trend over last 3 years
To do this you will have to review the balance sheet and income statements for each company.
Compare how each company is doing using the most recent information. You may also look at the TREND for each company over the last 3 years. Is trend for performance improving or getting worse?
You can go to finance.yahoo.com to find all the information you need.
In two to three pages, Compare the numbers for both companies, and explain your concerns Oh what you find attractive about each company's finances.
Then explain which company you would prefer to invest your money in and why.
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