Walmart, the multinational corporation that is considered the largest retail store in the world, is the corporation that we would invest in considering that we have the $100,000 to do so. Ever since Walmart went public in the 1970s, this corporation has been able to grow even more rapidly since investments in their stock have helped finance solid and continuous growth.  Like most brick-and-mortar retail outlets, Walmart has a significant online presence and is also in constant competition with Costco, the corporation that is identified as the second largest retail chain in the world. Costco, a much younger company than its competitor, has been a formidable threat to Walmart despite having a different business model that focuses on selling products in bulk and its customer base is membership-driven. However, Walmart has even expanded into membership-driven segments upon owning Sam’s Club. Over the course of November and the beginning of December, Walmart’s stock has been considerably less volatile than Costco, on a more upward steady trajectory with little fluctuations. A large reason for investing in this stock over Costco is due to Walmart having a significantly lower market price. While a lower market price doesn’t mean a better investment by any means,  the market price of Walmart’s stock is reasonable and would allow us to acquire more shares of stock with our $100,000.  According to NASDAQ, during the month of November, Walmart’s market price has fluctuated from around $87.00 to $98.09, whereas Costco’s market price has fluctuated from $161.29 to $180.43. Also, Walmart has a higher market cap than Costco, yet the market price of Costco’s stock is higher. As of December 5th, Walmart’s market cap is 289.69B with a current market price of $97.57. Meanwhile, Costco’s market cap is 82.97B with a current market price of $188.59. From this information, we can deduce that Costco’s stock may be overpriced. In looking at Walmart’s annual reports, their current ratio has decreased from 93% in 2015 to 86% in 2016. Even with a decrease in their current ratio, their percentages are still high which shows that they’re most likely able to pay off their liabilities, which, in turn, shows potential investors  that this corporation is financially healthy. According to NASDAQ, Walmart’s quick ratio for 2015 and 2016 were 24% and 22%, respectively. The quick ratios in comparison to the current ratios show that most of Walmart’s assets are composed of inventory. Net sales also has increased from $478,614 million in 2015 to $481,317 million in 2016. This increase in net sales highlights Walmart’s continuous success in generating sales. In respect to comparing financial documents, one of the factors that shareholders look at when investing in a corporation is their dividend per share. Dividends per share denote how much money an investor will receive per share of stock that they own. According to Walmart’s annual report for the fiscal year ending January 31, 2017, their dividend per share was $2.00 per share of stock. However, for the same fiscal year, Costco’s dividend per share was $1.70 per share of stock. Walmart has also been notable for increasing dividends per share every single year. Walmart has plans to increase dividends per share in 2018, which will make forty-four consecutive years of dividend increases. From a stockholder’s perspective, a higher dividends per share is not enough information on its own to convince an investor to purchase shares of stock, but it’s an important factor in making that decision. With this financial information, Walmart seems to be more attractive to invest in since there is a higher reward for investing.Another financial accounting formula that we took into consideration when deciding upon a corporation was the debt-to-equity ratio. Since Walmart and Costco are both similar in size and partially similar in terms of their business model, (due to Walmart’s Sam’s Club) we thought that we should compare this financial data. After looking at Walmart’s annual report for 2016, it can be tabulated that their debt-to-equity ratio was 1.6, which was only a very slight increase from 2015. On the other hand, Costco’s debt-to-equity ratio was larger at a figure of 2.4. Costco even had a significant increase in this ratio from the year 2015 to 2016, and that could be worrisome. Costco’s higher debt-to-equity ratio possibly indicates that this corporation is less financially stable than Walmart, and this affected our decision on who we would invest in. There have been recent reports that retail stores aren’t performing well in stocks, but Walmart continues to defeat the odds. After tracking Walmart’s stock for the past month or so, it’s safe to say that Walmart’s stock has been doing well. Their performance aligns with our expectations.  Their market price hasn’t been very volatile and has experienced little fluctuation, which is something that we predicted since Walmart is notable for being a reliable investment opportunity. Analysts suggest that Walmart’s mission to acquire a larger online presence has contributed to them performing so well. Walmart has also been doing well for many reasons that have been reported in the news. Most recently in the news, Walmart has expressed interest in acquiring Humana. This recent interest was catalyzed by CVS Pharmacy, the largest pharmacy chain, recently merging with Aetna Inc. If Walmart continues with this planned acquisition, Walmart will continue to expand further into the area of healthcare. As of right now, Walmart already offers pharmaceutical services, and this acquisition would expand their market even more.In addition, there have been reports that Walmart has been putting up a fight rather than allowing Amazon to continue dominating the marketplace. Amazon has been predicted to monopolize the market with their rapid growth. Rather than complacently sitting on the sidelines, Walmart has been acquiring numerous e-commerce sites such as Jet Wholesale and ModCloth in order to compete with Amazon. These strategic acquisitions allow Walmart to cater to even more customers, which helps them become a bigger threat to Amazon. Walmart seems to be a stable investment opportunity due to its previous financial achievements and its longstanding history of financial success. While investing in stock is a risky business, and there’s no possible way to completely eliminate the risks associated with becoming a stockholder, Walmart seems to be less risky in comparison to Costco.

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