Description
Comprehensive Project:
The course project consists of a comparative financial statement analysis using all of the tools, methodologies and concepts mastered during the FSA course using two publicly traded companies (large cap and/or midcap stocks) competing in the same industry. Examples are Home Depot and Lowes, ExxonMobil and Chevron, Pfizer and Merck, Target and Wal-Mart, American Airlines and United Airlines, Intel and Advanced Micro Devices, Apple and Microsoft, etc. Each project must be preapproved by the Professor no later than the third week of the course. No project may be duplicated, i.e., once two companies are declared they are removed from the universe. The final project paper must be well organized, coherent, with a cover sheet, abstract, table of contents, an introductory statement, statement of objective, description of companies, business models, strategy and relevant industry, quantitative and qualitative analysis, an appendix with exhibits, charts, footnotes and bibliography.
The project is both historical and forward looking and should at a minimum address the following questions: 1) who has been and who is the superior competitor? Why? 2) Are the companies presently valued properly and why or why not? 3) What are the growth prospects for the companies and which company is a better investment to add to an investment portfolio and why? 4) Which company has superior qualitative and quantitative accounting metrics? Why? 5) What non-accounting factors influence your prediction and decision? Why? 6) Which company exhibits superior corporate governance metrics and corporate social responsibility and how did this influence your decision? 7) What recent activities did the companies undertake, e.g. M&A activity that influenced your decision?
Explanation & Answer
Attached.
1
Netflix v Disney Comparative Financial Statement Analysis
Student’s Name
Institutional Affiliation
Tutor’s Name
Due Date
2
Abstract
3
Table of contents
Table of Contents
Introduction ......................................................................................................................................4
Statement of Objective .....................................................................................................................4
Description of companies ................................................................................................................4
Netflix Inc. ..................................................................................................................................4
The Walt Disney Company .........................................................................................................5
Business models ...............................................................................................................................5
Netflix .........................................................................................................................................5
Disney .........................................................................................................................................6
Media Networks .....................................................................................................................6
Parks, Experiences, and Products ...........................................................................................6
Studio & Entertainment ..........................................................................................................7
Direct-to-Consumer and International ....................................................................................7
Strategic Analysis.............................................................................................................................7
Netflix Strategic Analysis ...........................................................................................................7
Strengths .................................................................................................................................8
Weaknesses .............................................................................................................................8
Opportunities ..........................................................................................................................9
Threats ....................................................................................................................................9
Disney Strategic Analysis ...........................................................................................................9
Strengths .................................................................................................................................9
Weaknesses ...........................................................................................................................10
Opportunities ........................................................................................................................10
Threats ..................................................................................................................................10
Quantitative Analysis ..................................................................................................................... 11
Profitability ...............................................................................................................................12
Growth rates ..............................................................................................................................12
Managerial Effectiveness ..........................................................................................................13
Valuation ...................................................................................................................................13
Recommendation ...........................................................................................................................14
4
Introduction
NBC’s launch of the Peacock streaming service in July 2020 marks the last of the
expected streaming services from established media giants. Peacock is part of second-generation
streaming services which include HBO Max, Disney+, Apple TV+, and Quibi all aiming to chip
away at Netflix’s growing market share. The rise of Netflix in the early 21st cen...
Review
Review
