Accounting 301b project

Accounting 301b project - earnings went down from 16.13 to...

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Walmart Vs. Target. Using profitability ratios we will measure how the companies stock measures up against one another. Earnings per share measures the net income that was earned per share of common stock. Wal-mart’s earnings per share from 2007-2009 has grown from $2.92 to 3.35. Target, in the same period of time, has declared an earnings per share of 3.37 to 3.31, also indicating a rise in the income per common stock. Wal-mart has experienced a greater growth than Target. The share prices were comparable between the two companies. Wal-mart highest share price was hit in 2008 at 47.18, while Target’s hit in 2007, at 50.64. This shows that though Target has a favorable average per share, Wal-Mart has many more shares. This comparison is shown in the price over earnings ratio. The price/earnings ratio shows the earnings per share over market price which determines………… Wal-marts price over
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Unformatted text preview: earnings went down from 16.13 to 14.06. Target’s ratio went down from 2007-2008 from 12.44-15.99. And back up in 2009 to 12.94. The payout ratio measures the percentage of earnings distributed in the form of cash dividends. In Wal-Mart, the ratio of payout went down from 22% to 21% then up to 21.2%. in target the ratio of payout went up from 2007 to 2008 at 15 to 21%. Then it went down to 19.9% in 2009. In both companies seem to be taking care of its investors by being able to support the payout of dividends. Walmart is doing a better job than Target in this area, it seems like a better option to invest your money into. Our reccommendation, based on the profitablility of the company is to invest into walmart, as it shows greater growth through the years, and financial stability. The company is bigger, and thus growing at a faster rate....
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This note was uploaded on 08/10/2010 for the course ACCT 301A taught by Professor O during the Spring '08 term at CSU Fullerton.

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Accounting 301b project - earnings went down from 16.13 to...

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