Class Project Financial Management Final update

YAHOO! vs GOOGLE (YHOO vs GOOG) a WCUMBA Class Project – Financial Management by Erwin Sumargo

Yahoo! Company Profile

Yahoo! Inc. ( http://www.yahoo.com ), ticker symbol: YHOO

701 First Avenue, Sunnyvale, CA 94089, USA

Phone: 408-349-3300, Fax: 408-349-3301,

Employees: 14.300

Direct Investment: Yes

Divident Reinvestment: Yes

Index Membership:

S&P 500

S&P 1500 Super Comp

Nasdaq 100

Sector: Technology

Industry: Internet Information Provider

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

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

Yahoo! Income Statement

Yahoo! Cash Flow

Yahoo! Balance Sheet

Yahoo! Growth

Yahoo! Profitability

Yahoo! Financial Health

Yahoo! Stock Chart

Google Company Profile

Google Inc. ( http://www.google.com ), ticker symbol: GOOG

1600 Amphitheatre Parkway, Mountain View, CA 94043, USA

Phone: 650-253-0000, Fax: 650-253-0001

Employees: 19.604

Direct Investment: No

Divident Reinvestment: No

Index Membership:

S&P 100

S&P 500

S&P 1500 Super Comp

Nasdaq 100

Sector: Technology

Industry: Internet Information Provider

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.

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.

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 , 35 Co-Founder, Pres of Products, Assistant Sec., Director, Member of Exec. Committee, Member of Acquisition Committee and Member of Real Estate Committee

Dr. Sergey Brin , 34 Co-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 , 46 Sr. VP of Product Management

Dr. Robert Alan Eustace , 51 Sr. VP of Engineering & Research

Google Income Statement

Google Cash Flow Report

Google Balance Sheet

Google Growth

Google Profitability

Google Financial Health

Google Stock Chart

YHOO vs. GOOG Stock Prices Chart from est. 2004 – Sept. 2008

Profitability Ratios 59.9 60.2 58.1 59.3 58.4 60.1 Gross Margin 30.6 33.5 32.9 10 14.6 21.1 Operating Margin 25.33 29.02 23.87 9.47 11.69 36.07 Net Margin 19.19 21.41 21.57 5.56 6.73 18.95 Return on Assets 21.16 23.26 23.73 7.06 8.48 24.21 Return on Equity 2007 2006 2005 2007 2006 2005 GOOG GOOG GOOG YHOO YHO YHOO

Leverage Ratios 1.12 1.08 1.09 1.26 1.26 1.29 Financial Leverage - - - - - - Capital Structure Leverage - - - - - - Common Equity Leverage 2007 2006 2005 2007 2006 2005 GOOG GOOG GOOG YHOO YHO YHOO

Solvency Ratios 25.9 23.3 31.6 39.7 41.7 30.2 Tax Rate - - - - - - Interest Coverage 8.5 10 12.1 1.6 1.7 1.8 Current Ratio 2007 2006 2005 2007 2006 2005 GOOG GOOG GOOG YHOO YHO YHOO

Asset Turnover Ratios 0.76 0.74 0.9 0.6 0.6 0.5 Asset Turnover 5.2 6.3 9.2 5.7 7.1 8.6 Fixed Asset Turnover - - - - - - Inventory Turnover 9.1 10.5 11.5 7 7.8 8.8 Receivables Turnover 2007 2006 2005 2007 2006 2005 GOOG GOOG GOOG YHOO YHO YHOO

Earnings Ratios 52.1 46.3 82.6 45.7 32.4 36.2 Price / Earning Ratio 33.7 98 243.8 0.47 0.52 1.28 Earning per share 2007 2006 2005 2007 2006 2005 GOOG GOOG GOOG YHOO YHO YHOO

Conclusion…