Bayerische Motoren Werke

The BMW Group sets trends in production technology

and sustainability as an innovation leader with an
intelligent material mix, a technological shift towards
digitalisation and resource-efficient production. At the
same time, flexibility and continuous optimisation of
value chains ensure competitiveness. BMW can trace
its roots back to Karl Rapp and Gustav Otto. In 1916, the
Flugmaschinenfabrik Gustav Otto company had
merged into Bayerische Flugzeug-Werke AG (BFW) at
government behest.

BMW, inc (BMW.DE). trading at: NASDAQ.

operates in the consumer cyclical sector, in
the Auto Manufacturers industry.

FIRST PART
 Analysis
The results that I reached after analyzing
BMW are that it has a negative coefficient
correlation with the market index, and this
indicator means that BMW company is
moving in the opposite direction from the
market, even if it is at a weak rate.
Also it beta was 0.9439, which means that
the company will have move on average 1
times the market index return. And it's
more volatile than the overall market.
 TESLA
Tesla, Inc. (TSLA). NASDAQ is the trading location. It operates in
the Auto Manufacturers industry, specifically in the consumer
cyclical sector. It works on completely electric car design,
development, production, and sales, as well as energy generating
and storage solutions. It was founded by Jeffrey B. Straubel, Elon
Musk, Martin Eberhard, and Marc Tarpenning on July 1, 2003 and
is headquartered in Palo Alto, CA. Additionally, it offers auto repair
shops, supercharger stations, and self-driving technology. The
following segments make up the company's business: Vehicles,
energy production, and energy storage. Electric vehicle design,
research, manufacturing, and sales are included in the automotive
segment. The design, production, installation, sale, and leasing of
stationary energy storage products and solar energy systems, as
well as the sale of electricity produced by its solar energy systems
to consumers, are all included in the Energy Generation and
Storage section. It creates energy storage solutions for use in
private residences, business buildings, and utility sites.
 Analysis
On the other hand, I reached from my
research and analysis of Tesla that It has a
positive correlation, which means that it goes
in the same direction and grows with the
growth of the market index, or vice versa, as
we can see it more clearly on the graph.
I also noticed that the beta is equal to 1.9994,
and it is considered high when compared to
BMW, as it indicates that Tesla
will have move on average 1.9994 times the
market index return. This means that it will be
more sensitive to changes in the market index
Walmart, inc (NYSE:WMT).
trading at: NASDAQ.
engages in retail and wholesale business.

It is a pretty sizable set of stores in the US and other nations that offer a wide
selection of products at affordable costs.
is a Bentonville, Arkansas-based American international retail firm that runs a
chain of hypermarkets (commonly known as supercenters), cheap
department stores, and grocery shops. Sam Walton established the business
in the neighborhood of Rogers, Arkansas, in 1962, and it was officially
registered under Delaware General Corporation Law on October 31, 1969.
Additionally, it owns and runs the retail warehouses for Sam's Club.

SECOND PART
Analysis I noticed a rise in beta from the first half to the second half of the
analyzed period, and it was as follows: 0.53-0.63 = 0.10
And as we know that A beta of less than 1 indicates that a stock's
price is less volatile than the overall market
Which means that the Wal-Mart stock is not considered a
dangerous stock, but the rise indicates that the company may be
using debt as a funding source, even if it did not exceed 1. If it
continues on this level, it may exceed 1.
As for the beta for all the years under analysis, it is
0.5318 in both my analysis and on Yahoo Finance.
Since beta is frequently used to measure risk, I may
remark that the stock's beta of 0.53 indicates that
it is half as volatile. A stock with a beta of two is
predicted to move 20% whether the S&P 500 index
increases or decreases by 10%. In general, a stock
with a beta of 0.53 would change just 5% when the
benchmark index changed by 10%.
 walmart
I calculated that Walmart's asset turnover ratio was 2.3, which is below the industry
standard of 2.5 for the retail sector. Although it fell short of the average, I believe it is
still a fair ratio.
Additionally, The operational margin calculates the profit an organization makes on
each dollar of sales, after variable production costs, such as labor and raw materials,
but before interest or taxes. And according to a piece on the Investopedia website,
the usual retail profit margin ranges from 0.5 to 3.5%. So, considering the impact on
ROA I can say that Walmart is doing great so far.
And for the ROE it’s particularly utilized for performance comparison. A ROE is a
metric for management's capacity to generate income from the equity at its disposal,
similar to return on capital.
ROEs of 15% to 20% are typically seen as favorable.
However, because I was comparing between three
businesses and Walmart had the lowest ratio of 16.7%, I
had to conduct a DuPoint analysis. From this, I deduced
that the issue lay with the net profit margin because
sales were excessively high compared to EBIT, or
operating profit.
3rd PART
 TESLA
The asset turnover ratio is a measure of how well a
company is using its assets in the manufacturing
sector. The asset turnover for Tesla in 2021 is 0.94. Tesla
currently dominates the market for battery-powered
electric car sales in the US, and based on the ratio, I can
predict that it will continue to do so.
The operating margin shows how much of a
company's revenue (income) is left over after variable
production costs, such as labor costs and raw
materials, are covered. And I calculated 12.5%, which is
reasonable given that its turnover ratio will make up
the difference for ROA.
 Analysis
BMW has the same a The industry is Tesla
which is manufacturing and I calculated a
good 15% as an operating profit margin which
is higher than Tesla but on the other hand, I
calculated 0.5 and the turnover ratio which is
lower than Tesla, and I would say that the
turnover was the reason for lowering the ROE

BMW by half of the 15% . It is worth noting that The

turnover was really low but the final ROA
wasn’t that bad but it’s still considered the
lowest of the three companies under analysis.
Comparison
Since Comparing two companies in the same industry is a fair comparison I Compared
Tesla with BMW. First, by comparing the assets which are Account receivable inventory,
properties, and equipment, it can be said that Tesla has the highest proportions of all of
them in terms of the common size percentage, as it owns property unlike the other
company, and it also invests more by 2% in inventory and more by 6% in equipment
Secondly, a comparison between current liabilities and long-term debt. After calculating
the common size for each company, it became clear to me that Tesla is doing a good job in
reducing debts, especially after comparing it with BMW, which revealed that 24% of the
liabilities are from this term, which is a significant portion concentrated in it.
Regarding the current liabilities, the difference is only 1%, which is thought to be a very
little number. It can be said that the difference in the debts is 24% - 7% + 1% = 18%, which is
a greaterthe burden on BMW.
Finally, The particular proportion of debt and equity used to fund a company's assets and
activities is referred to as the capital structure. And by comparing the debt ratio and the
percentages from preferred and common equity I can see that there is a big difference.
Tesla has a significantly better capital structure than BMW sense that it has a lower Debt
ratio and higher common equity. On the contrary, BMW has a lot of debt looking at the
debt ratio for the lowest common equity.
4th PART