Look at the beta of Apple Google Sirius XM Pandora and Live
Look at the beta of Apple, Google, Sirius XM, Pandora, and Live Nation, and rank the stocks from least to most risky (the beta measures the price volatility of a stock compared to a market benchmark; a value of one indicates average risk while, say, 1.2 indicates 20% more risk than average).
a. Which of the five stocks, if any, is showing losses in earnings per share?
b. Which company has the highest price-to-earning ratio? The lowest?
c. Which of the five stocks, if any, is paying dividends?
d. Which company has the highest market cap? The lowest?
e. Is a possible gauge of the full amount earned on a stock investment the EPS times the number of shares purchased?
Solution
Data is derived from NASDAQ as follows
1: Company ranking
Sirius XM
Live Nation
2: Losses in EPS is shown in Pandora and LiveMint
3:HIghest P/E Ratio is that of Google. Lowest P/E Ratio is that of Apple
4:Apple and Sirius XM is paying dividends.
| Apple | Sirius XM | Pandora Media | Live Nation | ||
| Beta | 1.02 | 1.51 | 0.79 | 2.02 | 1.52 |
| EPS | 10.36 | 23.56 | $ 0.15 | $ -2.30 | $ -0.54 |
| P/E | 18.37 | 48.94 | 46.8 | N/E | N/E |
| Dividend | 2.92 | N/A | 0.04 | N/A | N/A |
