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I will pay for the following essay Rationale for choosing the two companies and industries based on your industry and fundamental analysis. The essay is to be 6 pages with three to five sources, with
I will pay for the following essay Rationale for choosing the two companies and industries based on your industry and fundamental analysis. The essay is to be 6 pages with three to five sources, with in-text citations and a reference page.
Download file to see previous pages...During last financial year i.e. in 2010, companies have experienced higher growth and hence, there had been higher dividend yield (Vellacott and Cruise, 2011). UK economy has been experiencing slower economic growth but it steady and expected to grow much higher by 2012. However, due to sluggish economic recovery, Confederation of British Industry (CBI) has claimed that “expected national output to increase by 1.3% in 2011 compared to the 1.7% it had been predicting three months ago” (Elliott, 2011). During 2007-2009, overall GDP growth was negative due to global crisis, but during 2010, these parameters have taken an increasing trend that will make stock market grow in coming years. Industry Analysis Telecommunication UK telecommunication industry is highly developed in terms of industry polices and market exposures like demand. For example, during end 2010, nearly 4.8 million and 33.1 million were the users of mobile broadband and 3G mobile (Ofcom, 2011). Figure 6 portray that mobile ownership has been grown from 50% to 91% since last 10 years and figure 7 shows that there also have been growth in broadband connection. The market report also signifies that there has been a slight decline in annual revenue of telecommunication industry as presented in the following figure. However, it is expected that, during 2011, industry revenue is expected to grow by 2% to ?35.6 billion and annual growth rate will grow rate nearly 3%-4% p.a. By the end of 2015, market is projected at ?40.7 billion i.e. “equivalent to cumulative growth of 17% in real terms compared with 2010” (MBD, 2011). Pharmaceutical Multiple new product development led by technological advancement and government’s initiatives are expected to bring rapid growth in healthcare industry. Comparing to other manufacturing industries, pharmaceutical has shown a better performance. The above figures show UK’s Pharmaceutical trade, there has been significant growth in this industry since last decades. The overall import and export has increased and medical pharmacy products are the highest gainer. Company Analysis Vodafone Plc Vodafone Group is one of leading global telecommunication company, and in UK Vodafone’s performance has been remained better than its rivals. A key comparison of Vodafone with its key rivals British Telecom and Telefonica SA are given below. The overall performance of Vodafone has been better than its rivals in terms of profit margin and its sales and stock returns its performance has remained quite better. Moreover, with lowest debt-equity ratio, it also has lower risk level. The following table depicts the financial highlights. Vodafone’s net profit margin and sales volume are very high that clearly signifies its better financial performance. Its shareholders have also gained a higher return on their investments as earning per share and dividend payout ratio are attractive for making investments. The key ratios of Vodafone indicate that financial condition is very stable than its key rivals.