Take the role of an investment analyst. It is your job to recommend investments for your client. The only information you have is the following ratio values for two companies in the data analytics industry: LOADING...(Click the icon to view the two company ratio summary sheet.) Recommend one company's stock over the other. State the reasons for your recommendation.

Take the role of an investment analyst. It is your job to recommend investments for your client. The only information you have is the following ratio values for two companies in the data analytics industry: (Click the icon to view the two company ratio summary sheet.) Recommend one company's stock over the other. State the reasons for your recommendation. ..... . An investment in Stellar Corporation should therefore produce a higher 1. Stellar Corporation's return on equity (ROE) is 5% higher than Abbott Co.'s return than an investment in the other company's stock. This means that Stellar Corporation is earning more 2. Stellar Corporation's ROE exceeds its return on assets by a wider margin than does Abbott Co.'s with its borrowed funds than Abbott Co. is earning. 3. Stellar Corporation can cover its interest expense with operating income 19 times compared to 13 times for Abbott Co. 4. Stellar Corporation collects receivables faster than Abbott Co. does. This suggests that cash flow is stronger at Stellar Corporation . 5. The gross profit percentage of Stellar Corporation's is higher than Abbott Co.'s These ratios provide insight about companies' 6. Abbott Co. is better than Stellar Corporation on operations. Data table Stellar Corporation Ratio Abbott Co. 48 41 11 7 Days' sales in receivables Inventory turnover Gross profit percentage Net income as a percent of sales 58% 67% 13% 12% Times interest earned 13 19 30% 35% Return on equity Return on assets 19% 14% Print Done