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Using the Internet, find Earnings Per Share and Price/Earnings ratio information for two competing publicly traded...

Using the Internet, find Earnings Per Share and Price/Earnings ratio information for two competing publicly traded companies. State what you have found and provide a couple of sentences of explanation as to what those ratios tell you about the firms. Finally, provide some analysis of which firm you think would be the better investment, based on this information.

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Answer #1

Here, analysis is done between tech Giants Apple Inc and Microsoft Inc.

APPLE

Earning per share of apple(diluted) for past 12 month ended June 2019 is $11.73 and price/earning ratio is 20.69 .

EPS shows how much money a company will make for each share. If u have one share in apple, earning u get is $11.73 from it. PE ratio shows how much investor should invest to make $1

MICROSOFT

Earning per share is $5.07 and PE is $27.63

It tells that for each share in Microsoft u earn $5.07 and PE shows that shares are over priced and more growth is expected due to that.

INVESTMENT OPTION

Both apple and Microsoft are good options for investment. But as ratios show Apple has good earnings but Microsoft has more growth in coming years. Therefore Microsoft has a little edge over apple

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