Class Project Financial Management Final update
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Transcript of Class Project Financial Management Final update
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YAHOO! vs GOOGLE(YHOO vs GOOG)
a WCUMBA Class Project – Financial Management
by Erwin Sumargo
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Yahoo! Company Profile
Yahoo! Inc. (http://www.yahoo.com), ticker symbol: YHOO701 First Avenue, Sunnyvale, CA 94089, USAPhone: 408-349-3300, Fax: 408-349-3301, Employees: 14.300Direct Investment: YesDivident Reinvestment: YesIndex Membership:
S&P 500 S&P 1500 Super Comp Nasdaq 100
Sector: TechnologyIndustry: Internet Information Provider
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Yahoo! Company Profile (contd.)
Yahoo! Inc. was founded in 1994 and is headquartered in Sunnyvale, California.
It provides Internet services to users, advertisers, publishers, and developers worldwide.
It offers online properties and services to users; and marketing solutions and tools to advertisers and publishers.
With operations in more than 30 countries, including 34% ownership of Yahoo Japan, Yahoo is one of the most popular Internet destinations in the world.
Advertising accounts for about 85% of sales. The remaining 15% comes from fees on premium services.
It has strategic partnerships with AT&T, Inc.; Verizon Communications, Inc.; BT Telecommunications PLC; Rogers Cable, Inc.; and Newspaper Consortium
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Yahoo! Company Profile (contd.)
Key Executives Mr. Jerry Yang (39),
Co-Founder, CEO, Chief Yahoo! and Exec. Director Ms. Susan Decker (45),
President Mr. Blake Jorgensen, (48)
Chief Financial Officer Mr. Michael J. Callahan, (39)
Exec. VP, General Counsel and Secretary Mr. Michael A. Murray, (52)
Chief Accounting Officer and Sr. VP of Financial
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Yahoo! Income Statement
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Yahoo! Cash Flow
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Yahoo! Balance Sheet
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Yahoo! Growth
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Yahoo! Profitability
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Yahoo! Financial Health
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Yahoo! Stock Chart
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Google Company Profile
Google Inc. (http://www.google.com), ticker symbol: GOOG1600 Amphitheatre Parkway, Mountain View, CA 94043, USAPhone: 650-253-0000, Fax: 650-253-0001Employees: 19.604Direct Investment: NoDivident Reinvestment: NoIndex Membership:
S&P 100 S&P 500 S&P 1500 Super Comp Nasdaq 100
Sector: TechnologyIndustry: Internet Information Provider
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Google Company Profile (contd.)
Google, Inc. was founded in 1998 and is headquartered in Mountain View, California.
Google, Inc., a technology company, maintains index of Web sites and other online content for users, advertisers, Google network members, and other content providers.
Its automated search technology helps users to obtain instant access to relevant information from its online index.
The company’s solutions provide targeted advertising and Internet search solutions, as well as intranet solutions via an enterprise search appliance.
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Google Company Profile (contd.)
Google provides a free search engine for users around the world and generates revenue whenever a user clicks on a text ad displayed alongside the search results. This represents 90% of the company's net revenue.
The remaining 10% of net revenue is derived from text ads sold on content providers' Web sites. Google is also investing in new business lines including traditional media advertising, the mobile industry, and online software.
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Google Company Profile (contd.)
KEY EXECUTIVES Dr. Eric E. Schmidt Ph.D., 53
Chairman, Chief Exec. Officer, Chairman of Exec. Committee, Chairman of Acquisition Committee and Chairman of Real Estate Committee
Dr. Larry Page , 35Co-Founder, Pres of Products, Assistant Sec., Director, Member of Exec. Committee, Member of Acquisition Committee and Member of Real Estate Committee
Dr. Sergey Brin , 34Co-Founder, Pres of Technology, Assistant Sec., Director, Member of Exec. Committee, Member of Acquisition Committee and Member of Real Estate Committee
Mr. Jonathan J. Rosenberg , 46Sr. VP of Product Management
Dr. Robert Alan Eustace , 51Sr. VP of Engineering & Research
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Google Income Statement
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Google Cash Flow Report
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Google Balance Sheet
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Google Growth
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Google Profitability
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Google Financial Health
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Google Stock Chart
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YHOO vs. GOOG Stock Prices Chart from est. 2004 – Sept. 2008
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Profitability Ratios
YHOO YHO YHOO GOOG GOOG GOOG
2005 2006 2007 2005 2006 2007
Return on Equity 24.21 8.48 7.06 23.73 23.26 21.16
Return on Assets 18.95 6.73 5.56 21.57 21.41 19.19
Net Margin 36.07 11.69 9.47 23.87 29.02 25.33
Operating Margin 21.1 14.6 10 32.9 33.5 30.6
Gross Margin 60.1 58.4 59.3 58.1 60.2 59.9
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Leverage Ratios
YHOO YHO YHOO GOOG GOOG GOOG
2005 2006 2007 2005 2006 2007
Common Equity Leverage - - - - - -
Capital Structure Leverage - - - - - -
Financial Leverage 1.29 1.26 1.26 1.09 1.08 1.12
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Solvency Ratios
YHOO YHO YHOO GOOG GOOG GOOG
2005 2006 2007 2005 2006 2007
Current Ratio 1.8 1.7 1.6 12.1 10 8.5
Interest Coverage - - - - - -
Tax Rate 30.2 41.7 39.7 31.6 23.3 25.9
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Asset Turnover Ratios
YHOO YHO YHOO GOOG GOOG GOOG
2005 2006 2007 2005 2006 2007
Receivables Turnover 8.8 7.8 7 11.5 10.5 9.1
Inventory Turnover - - - - - -
Fixed Asset Turnover 8.6 7.1 5.7 9.2 6.3 5.2
Asset Turnover 0.5 0.6 0.6 0.9 0.74 0.76
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Earnings Ratios
YHOO YHO YHOO GOOG GOOG GOOG
2005 2006 2007 2005 2006 2007
Earning per share 1.28 0.52 0.47 243.8 98 33.7
Price / Earning Ratio 36.2 32.4 45.7 82.6 46.3 52.1
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Conclusion…
Yahoo! & Google are two pillars that support the Internet industry, can’t imagine if one of them collapsed…
Even Yahoo! pioneered the industry, but Google, with it’s ingeniousity make higher profits, thereby increase it’s stock price marvelously
Yahoo!’s stock price is almost unchaged / maintain stability of almost 4 years…
Both of them are innovative, can be seen by various feature & facility they provide.
What about Microsoft? Will they ever buy Yahoo! ???