Team B Portfolio

Mireya Gomez, Marina Kriofske, Raven Schatz

FIN/402

September 7, 2015
Professor Richard Smith

Procter & Gamble Procter & Gamble has been in business for 178 years. Dividends have consecutively increased in the past 59 years. The common stock five year average return for Procter & Gamble is 73.66. The average rate of return for the past five years is 4.17 percent. Procter & Gamble's industry is personal products. The company streamlined its businesses into five industry-based groups. The groups are global baby, feminine and family care; global beauty; global health; global grooming; and global fabric and home care. The five year average return in personal products is 12.86 percent (Procter & Gamble, 2015). Procter & Gamble is in the same industry as Scott's Liquid Gold Inc., Kimberly-Clark Corp and Unilever PLC. Scott's Liquid Gold Inc. five year rate of return is 44.15 percent. Kimberly-Clark Corp five year rate of return is 13.57 percent. Unilever PLC five year average rate of return is 11.04 percent (Morningstar, 2015).
|Industry Name |5-Day |YTD |1-Month |3-Month |1-Year |3-Year |5-Year |

| | | | | | | | | |
| | | | | | | | |
|Household & Personal |2.00 |2.38 |0.26 |0.69 |5.98 |14.41 |12.86 | |
|Products | | | | | | | | |

Procter & Gamble Co |186,515.74 |-3.44 |-22.35 |-9.42 |-11.17 |-14.73 |4.17 | | |
Scott's Liquid Gold Inc |17.50 |28.21 |59.57 |54.64 |20.00 |108.33 |110.86 |44.15 | | | | | | | | | | | | | | | | | | | | | |
Unilever PLC |118,575.46 |-2.85 |-0.75 |-13.68 |-9.88 |-9.02 |6.44 |11.04 | |
Kimberly-Clark Corp |37,709.75 |-2.62 |-8.12 |-10.00 |-2.27 |3.81 |12.49 |13.57 | |
(Morningstar, 2015) | | | | | | | | | | Procter & Gamble's performance compared to the industry average is about 3 times lower. They also have the lowest rate of return compared to the other stocks. Scott's Liquid Gold is the highest performer compared to the industry and other stocks. Unilever and Kimberly-Clark are close in return compared to the industry. When comparing the stocks, it would be recommended to change stock to Scott's Liquid Gold Inc.
Ford Motor Company Ford Motor Company five year average rate of return is 4.60 percent. Ford Motor Company is the automotive manufacturer industry. The industry average for the past five years is 12.27 percent. Other stocks that are in the same industry are Toyota Motor Corp., Nissan Motor Co. Ltd., and Honda Motor Co. Ltd. Toyota Motor Corp's five year average rate of return is 12.69 percent. Nissan's five year rate of return is 4.76 and Honda's is .20 (Morningstar, 2015). In comparison to the stocks, the industry is slightly lower than Toyota Motor Corp at 12.27. Toyota has the highest rate of return compared to the industry and the other three stocks. Honda has the lowest return rate averaging at .20. Ford and Nissan have the closest rate compared to each other. When comparing the stocks, it would be recommended to change stock to Toyota Motor Corp.
Industry Name |5-Day |YTD |1-Month |3-Month |1-Year |3-Year |5-Year | |Auto Manufacturers |-0.51 |8.95 |-0.37 |-0.60 |17.89 |21.12 |12.27 | |
Stock Name |MarketCap |5-Day |YTD |1-Month |3-Month |1-Year |3-Year |5-Year | |Ford Motor Co |53,803.88 |-1.31 |-9.61 |-9.05 |-8.90 |-18.15 |16.71 |4.60 | | | | | | | | | | | |
Toyota Motor Corp |183,322.65 |-3.54 |-5.55 |-10.28 |-14.87 |3.21 |16.61 |12.69 | |
Nissan Motor Co Ltd |36,693.29 |-4.42 |1.69 |-6.82 |-17.63 |-7.45 |1.08 |4.76 | |
Honda Motor Co Ltd |53,978.49 |-4.98 |3.77 |-12.78 |-11.47 |-9.24 |-0.81 |0.20 | |
(Morningstar, 2015) | | | | | | | | | |
Walmart
“Walmart first offered common stock to the public in 1970 and began trading on the New York Stock Exchange (NYSE: WMT) on August 25, 1972. We have provided an annual cash dividend, paid quarterly, to shareholders since first declaring a dividend in 1974” ("Walmart", 2015). Walmart’s five year average rate of return is 22.16 from January 2011 until January 2015("15 Year Financial Data", 2014-2015) .It is a part of the discount, variety stores industry. The discount stores industry five year return is 14.09 ("Morningstar", 2015). Industry contains Target, Costco, Macy’s and other competitors. Target’s five year average from 2011-2015 is 28.69, Costco five year rate of return is 15.85, and Macy’s five year rate of return is -4.38. Compared to Walmart’s securities Walmart seems to have the upper hand in leading market value at 205 million. Costco comes in second at 60 Million, followed by Target (48million), and Macy’s (19million). When looking at the stocks in terms on returns (Beta value) none of the stocks are greater than 1. Meaning they are not more volatile than the market. Target comes in first as most volatile at .89, Costco at .84, then Macy’s .79, and Walmart at .7. Lastly, looking at earnings per share Walmart comes in second at $4.79 while Costco leads with $5.22. Walmart could try to increase its beta value by investing in different companies in different sectors or by investing in different asset classes. Increasing revenue in the following years by investing in new products or a new service could make improvements to Walmart as a security.

Competitors in Discount, Variety Stores Industry

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References
15 Year Financial data. (2014-2015). Retrieved from

http://www.gurufocus.com/financials/WMT).

Morningstar. (2015). Retrieved from

http://news.morningstar.com/stockReturns/CapWtdIndustryReturns.html).

Morningstar. (2015). Retrieved from http://news.morningstar.com/stockReturns/CapWtdIndustryReturns.html
Morningstar. (2015). Retrieved from http://news.morningstar.com/stockReturns/IndustryTop100Stocks.html?industry=20531076
Morningstar. (2015). Retrieved from http://news.morningstar.com/stockReturns/IndustryTop100Stocks.html?industry=10209017
Procter & Gamble. (2015). Retrieved from http://www.pginvestor.com/corporateprofile.aspx?iid=4004124
Walmart. (2015). Retrieved from

http://(http://stock.walmart.com/investors/stock-information/quote-and-chart/default.aspx