Laura has recently inherited £50,000 and has been investigating the possibility of buying shares as an investment. She is, initially, looking to maximise her income.

She has researched two companies and has provided the following information based on the latest financial statements for the year ended 30 April 2023:

Balance sheet extracts for property, plant and equipment:

Required:
Evaluate both businesses from an investor’s point of view and advise Laura which company would be best for her to buy shares in.

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Current market price Share price high-low last 52 weeks* Dividend per share Dividend yield Dividend cover Earnings per share Price earnings ratio ROCE Gearing Stabilo plc 2.40 High - Low 2.50 - 2.35 9.6p 4% 4 times 25p 9.6 6.8% 40% Gogro plc 1.40 High - Low 1.45 - 0.60 10.5p 7.5% 0.8 times 10p 14 10.4% 125%