Stock Evaluation: Comparing Two Companies Purpose: To evaluate a potential stock investment by applying analysis methods learned in class. Instructions: Use the research websitesyears', discussed in class to analyze the following two companies. There is no word count but make sure it is meaningful and accurately understandable.

The Basics: www.morningstar.comQuote page	Coca-Cola Co.	PepsiCo Inc.
Ticker Symbol	KO	PEP
Exchange the stock trades on:	NYSE	NASDAQ
Share Price Today:
Year Range:
Market Capitalization:
Explain how market capitalization is calculated. What is the formula?

Financial Performance: Use the following financial information to compare the two companies. At the evaluation question explain the significance of the numbers.
You will look up the following information atwww.morningstar.com
Earnings Ratios	KO	PEP
Click on the Key Ratios tab, then Full Key Ratios Dataand look up the last few years EPS information:	2017: 2018: 2019: 2020: 2021: TTM:	2017: 2018: 2019: 2020: 2021: TTM:
Evaluation: In the space below, evaluate the earnings per share for the last six years. Explain which company has the more positive information and why. This should be at least 100 words.
PE Ratios	KO	PEP
Click on Valuation on the menu bar that runs under the company name. Find the current P/E.
On the same page find the firm's Price/Forward Earnings: this is the forward PE.
Evaluation: In the space below, evaluate the Current (trailing) and Forward P/E ratios. Explain which company has the more positive information and why. This should be at least 100 words.
Return on Equity and Assets	KO	PEP
Click on the Key Ratiostab, then Full Key Ratios Data. Scroll down the page and look up Return On Equity (ROE) for each company. These are %, so put the % sign.	2017: 2018: 2019: 2020: 2021: TTM:	2017: 2018: 2019: 2020: 2021: TTM:
Look up Return on Assets (ROA): These are %, so put the % sign.	2017: 2018: 2019: 2020: 2021: TTM:	2017: 2018: 2019: 2020: 2021: TTM:
Explainwhat ROE and ROA mean and provide the benchmark learned in class for each. ROE: ROA:
Evaluation: In the space below, evaluate the ROE numbers and the ROA numbers for each company and explain which company has the more positive information and why. This should be at least 100 words.
Debt to Equity	KO	PEP
From the Quote page click on the Key Ratios tab. On the lower, right corner see Debt/Equity. This is the Debt: Equity ratio. It is stated as a decimal. Multiply the decimal by 100 to get the Debt: Equity percent. List it here.	%	%
Evaluation: In the space below, evaluate the debt situation for each company. In your opinion, is either company carrying too much debt? Explain your answer fully. This should be at least 100 words.
Net Profit Margin	KO	PEP
Click on the Key Ratiostab, then Full Key Ratios Data. Scroll down the page and look up the net margin(under profitability) for the past few years. These are %, so put the % sign.	2017: 2018: 2019: 2020: 2021: TTM:	2017: 2018: 2019: 2020: 2021: TTM:
Explain what net profit margin means. How is it calculated and what does it tell you?
Evaluation: In the space below, evaluate the net profit margin for each company. Which company has the better profit margin? Complete the sentence for each company: "For every $1 of sales, XX cents are profit." Explain your answer in 100 - 150 words.

MORNINGSTAR Q Stock, Fund, ETF Quotes, Reports, Articles, Videos Today Best Investments Your Portfolio Markets EA Analysis Price vs. Fair Value Trailing Returns Financials Valuation Operating Performance ( Dividends Ownership Executive Profile