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The following financial data of two firms in the same industry are obtained from Yahoo Finance Statistics as of October 2019. Firm A Firm B

The following financial data of two firms in the same industry are obtained from Yahoo Finance Statistics as of October 2019.

Firm A

Firm B

S& P 500

Market price per share

120

298

Market Cap

342B

131B

Enterprise value

415B

129B

P/E (trailing)

27.2

36.0

22.1 (S&P 500)

EPS

4.42

8.26

EV/Revenue

0.80

0.85

EV/EBITDA

12.76

20.70

Profit margin

2.48%

2.4%

Operating margin

4.20%

3.1%

Total cash

9.28B

9.44B

Long-term debt

44.4B

5.1B

Beta

0.65

0.93

Short % of Float

1.29%

1.15%

Stock price change in last 1 year

28.2%

32.6%

8% (S&P 500)

Dividend yield (trailing)

1.76%

0.82%

1.93% (S&P 500)

Payout ratio

47.5%

29.5%

  1. (1) Briefly explain/define

    1. Market cap

    2. P/E ratio

    3. Profit margin

    4. Beta

    5. EBITDA

    6. Dividend yield

    7. Payout ratio

  2. Based on the data only how would you compare these two companies financially?

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