The two companies I am analyzing is Chevron (CVX) and Exxonmobil (XOM)

Profitability analysis is one of the most common parts of a financial statement analysis. Many use the results of the analysis to make decisions such as which stock to purchase. In week 2 you should be starting to analyze the two companies in the financial statement analysis project to recommend which stock to purchase. Please respond to at least one of the following questions regarding your two selected companies. In your initial response put the key portions of your analysis and reference other information researched that informs the decision made.

1.) Perform partial profitability analysis of the two companies you are analyzing in your financial analysis case for this course. Specifically breakdown the ROE of the two companies showing the three determinants of ROE described in the textbook starting on page 38 and consider the inherent riskiness of the two companies. Which company do you consider the riskiest? Explain why. Research if there has been any news, blogs, analyst, etc. discussion about either company's ROE or risk?

2.) Perform partial profitability analysis of the two companies you are analyzing in your financial analysis case for this course. Specifically analyze the profit margin and asset turnover ratios of the two companies. Which company has higher quality profitability based on these two measures? Explain why. Research if there has been any news, blogs, analyst, etc. discussion about either company's earnings quality, profit margin, or asset turnover.