Rationale for choosing the two companies and industries based on your Essay

Rationale for choosing the two companies and industries establish on your industriousness and fundamental analysis - Essay ExampleDuring last financial year i.e. in 2010, companies w atomic number 18 experienced higher growth and hence, in that location had been higher dividend yield (Vellacott and Cruise, 2011). UK economy has been experiencing slower stinting growth but it steady and expected to grow much higher by 2012. However, due to marshy economic recovery, Confede symmetryn of British Industry (CBI) has claimed that expected national output to increase by 1.3% in 2011 compared to the 1.7% it had been predicting three months ago (Elliott, 2011). During 2007-2009, overall GDP growth was negative due to global crisis, but during 2010, these parameters have taken an increasing trend that will make furrow market grow in approach age. Industry Analysis Telecommunication UK telecommunication industriousness is highly developed in terms of industry polices and market exposures like demand. For example, during end 2010, nearly 4.8 million and 33.1 million were the users of mobile broadband and 3G mobile (Ofcom, 2011). gauge 6 portray that mobile ownership has been grown from 50% to 91% since last 10 years and figure 7 shows that there also have been growth in broadband connection. The market enunciate also signifies that there has been a slight decline in annual revenue of telecommunication industry as presented in the following figure. However, it is expected that, during 2011, industry revenue is expected to grow by 2% to ?35.6 billion and annual growth rate will grow rate nearly 3%-4% p.a. By the end of 2015, market is projected at ?40.7 billion i.e. equivalent to cumulative growth of 17% in real terms compared with 2010 (MBD, 2011). Pharmaceutical Multiple new product development led by expert advancement and governments initiatives are expected to bring rapid growth in healthcare industry. Comparing to other manufacturing industries, pharmaceutica l has shown a go performance. The above figures show UKs Pharmaceutical trade, there has been significant growth in this industry since last decades. The overall import and export has increased and medical exam pharmacy products are the highest gainer. Company Analysis Vodafone Plc Vodafone Group is one of leading global telecommunication company, and in UK Vodafones performance has been remained better than its rivals. A call comparison of Vodafone with its key rivals British Telecom and Telefonica SA are given below. The overall performance of Vodafone has been better than its rivals in terms of profit margin and its sales and stock returns its performance has remained quite better. Moreover, with lowest debt-equity ratio, it also has lower risk level. The following table depicts the financial highlights. Vodafones net profit margin and sales volume are very high that clearly signifies its better financial performance. Its shareholders have also gained a higher return on their investments as earning per share and dividend payout ratio are attractive for making investments. The key ratios of Vodafone indicate that financial condition is very stable than its key rivals. Return on equity is also