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Frankie Fava Analysis of Portfolio Professor Braga-Alves 31 January, 2024 SPGI & SYK The financial markets are a dynamic network where all companies play distinctive roles that influence and shape the landscape of numerous industries. Among these significant entities, S&P Global Inc. (SPGI) stands as a key player in the financial data and stock exchanges industry while Stryker Corporation (SYK) plays a significant role in the medical devices industry within the healthcare sector. Both companies are part of the stocks we currently have investments in, and we must evaluate the performance of both companies in the stock markets in order to successfully support the ideas on buying, holding, or selling our current shares in the market. Standard and Poor’s Global Inc. (SPGI) is part of the financial data and stock exchanges industry. S&P Global Inc. consists of 39,361 full-time employees and stands as a provider of unbiased ratings, benchmarks, analytics, and data that caters to global capital, commodity, and automotive markets. This company is headquartered in New York, New York and was founded in 1860. It operates through six segments which include S&P Global Ratings, S&P Dow Jones Indices, S&P Global Commodity Insights, S&P Global Market Intelligence, S&P Global Mobility, and S&P Global Engineering Solutions. The diverse range of services provided by S&P Global Inc. accentuates its broad impact across multiple sectors of the global company. This company continues to play a vital role in shaping the landscape of financial information and analytics with its long-standing history and presence in key financial markets. As we delve into the specifics of S&P Global Inc’s performance, it is evident that the beta for this particular stock is 1.19 which indicates that the stock is expected to be more volatile than the overall market. Having a beta of 1.19, the stock is likely to have a higher return than the market if the market performs well. Conversely, if the market downturns, then the stock will experience larger declines. Since the beta is above 1, this might be more suitable for investors

who pursue a higher risk tolerance and have more willingness to accept more significant price fluctuations. I would suggest a hold due to the uncertainty of stability with this particular stock. When it comes to S&P Global Inc., my recommendation would be to hold. We bought 10 shares of this stock at $408.25 for on April 6 th , 2022. As of today, January 31 st , the price per share has risen to $448.35. This in turn has given us a profit of $400. With that being said I would recommend holding our shares because I believe that the price will continue to rise over a longer period of time and in return give us a greater profit. Switching gears to Automatic Data Processing, Inc. (ADP) which can be recognized as one of S&P Global Inc.’s competitors, we find a distinct profile. Automatic Data Processing, Inc.’s headquarters are located in Roseland, New Jersey and the company was founded in 1949. Automatic Data Processing, Inc. delivers human capital management solutions through cloud- based platforms on a global scale. Employer Services and Professional Employer Organization are the two segments that the company operates in. The Employer Services segment provides tactical cloud-based platforms, and outsourcing solutions for human resources. This includes payroll services, benefits, talent management, HR, insurance, and retirement. HR outsourcing to businesses through a model called the co-employment model is offered through the Professional Employer Organization segment. Also included in this segment is employee benefits, protection and compliance, expertise, and recruitment process outsourcing services. Now, let’s compare S&P Global Inc. to Automatic Data Processing. S&P Global Inc. has a Forward PE Ratio of 31.5 while Automatic Data Processing has a Forward PE Ratio of 26.04. The Peg Ratio (5-year) for SPGI is 2.61 while ADP’s is 2.89. SPGI has a ROE (ttm) of 6.91% while ADP has an ROE (ttm) of 115.46%. Forward Dividend Yield for SPGI is 3.64 while ADP’s is 5.60. The estimates growth in five years is 13.58% for SPGI and for ADP it is 11.14%. The beta is 1.19 with a short ratio of 3.02 for SPGI and 0.80 for ADP with a short ratio of 2.2. The average price target for SPGI is 480.89 and for ADP it is 250.60. To summarize the above data and information, ADP seems to have a lower forward PE ratio, a higher ROE, a higher dividend yield, and a lower average price target. On the other hand, SPGI can expect to have higher growth and it has a higher beta which indicates higher volatility. With that being said, since SPGI can expect a higher growth rate, I would suggest sticking in investments with SPGI rather than its competitor ADP.

Moving on, we extend our analysis to Stryker Corporation (SYK) which plays a key role in the medical devices industry within the healthcare sector. Stryker Corporation was founded in 1941 with its headquarters in Kalamazoo, Michigan and has 51,000 full-time employees. The company functions through two segments which includes MedSurg and Neurotechnology, and Orthopedics and Spine. Items like surgical gear and navigation systems are offered through the MedSurg and Neurotechnology segment while things such as implants are obtainable through the Orthopedics and Spine segment. With distributors in nearly seventy-five countries, the main customers of Stryker Corporation include doctors, hospitals, and other healthcare facilities. Examining the beta for SYK, it is currently at 0.93 which provides a safe buy option while also serving as a less volatile option. If the S&P 500 goes down by 1, you would only be losing 0.93 in the stock which would be losing less than the market does. If you are more risk- adverse this is something you might want to consider buying SYK since it serves as a more secure buy with the beta being so close to 1. My recommendation would be to hold and then possibly sell when we believe the price has reached its limit and there is no more room for growth when it comes to SYK. We bought 28 shares of the stock at $133.52 per share in 2017 making that a total cost of $3738.56. Today, the market value is $9393.44 giving us a profit of $5654.88. Our profit percentage would be 151.3%. Since we have previously held on to the investment made in 2017 and have made a significant profit, I believe it would be wise to continue holding since it seems that the stock will continue to grow. Recent news on Stryker Corporation talks about how revenues in the United States amounted to $4.36 billion which is up 12.8% from the prior year quarter’s actual. $3.71 billion summed from the adjusted gross profit in the reported quarter which was up 13.8% from last year’s quarter. The adjusted gross margin was up 120 basis points at 63.9%. The total operating expenses are up 1% from last year standing at $2.45 billion. International sales also augmented to $1.46 billion which increased by 8.9% year over year. The adjusted operating income has totaled $1.58 billion which has increased 14.3% from a year ago. Based on this analysis, it is fair to believe that the revenues will continue to gradually increase over time which is why I would suggest holding since there is still room for growth.

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As the narrative unfolds, one of Stryker Corporations competitors Intuitive Surgical Inc. (ISRG) enters the spotlight. Intuitive Surgical Inc. was founded in 1995 and its headquarters can be located in Sunnyvale, California. This company creates, produces, and distributes cutting- edge solutions that enable medical professionals to enhance the standard and availability of minimally invasive healthcare both domestically and internationally. The da Vinci Surgical System, the company's flagship product, uses a minimally invasive technique to make complex surgeries easier to perform. Furthermore, Intuitive Surgical provides the Ion endoluminal system, broadening its range of products to encompass diagnostic procedures and facilitating minimally invasive lung biopsies. Let’s compare Stryker Corporation to Intuitive Surgical Inc.. SYK has a Forward PE Ratio of 27.32 while ISRGs is 60.61. SYK has a PEG Ratio (5-year) at 3.07 and ISRG is listed at 5.54. 15.04% is the ROE (ttm) for SYK and for ISRG the ROE (ttm) is 14.83%. The estimated growth (5-year) for SYK is 10.71% and for ISRG it is 12.36%. The Beta (5Y Monthly) is 0.93 for SYK and for ISRG it is 1.36. The short ratio is 3.6 for SYK and for ISRG it is 1.58. The average price target is 330.39 for SYK and 405.59 for ISRG. Given this information, there are notable difference between both companies despite them both being in the healthcare sector. ISRG appears to have a higher valuation, higher expected growth, and a higher expected price target however, it comes with higher volatility and a smaller short ratio. In conclusion, this essay present a thorough analysis on four distinct companies in two different sectors, shedding light on financial metrics, growth prospects, and market dynamics. Each recommendation provided in this essay to buy, sell, or hold is supported by meticulous examination of the data provided. This information offers insights to guide effective decision- making in the stock market. I believe it would be very beneficial to the portfolio if we held on to S&P Global Inc. as well as holding on Stryker Corporation.

Works Cited “Automatic Data Processing, Inc. (ADP) Company Profile & Facts.” Yahoo! Finance , Yahoo!, 1 Feb. 2024, finance.yahoo.com/quote/ADP/profile?p=ADP. “Intuitive Surgical, Inc. (ISRG) Stock Price, News, Quote & History.” Yahoo! Finance , Yahoo!, 1 Feb. 2024, finance.yahoo.com/quote/ISRG?p=ISRG&.tsrc=fin-srch. “S&P Global Inc. (SPGI) Stock Price, News, Quote & History.” Yahoo! Finance , Yahoo!, 1 Feb. 2024, finance.yahoo.com/quote/SPGI?p=SPGI&.tsrc=fin-srch. “Stock Portfolio & Tracker.” Yahoo! Finance , Yahoo!, finance.yahoo.com/portfolio/p_12/view/v2. Accessed 31 Jan. 2024. “Stryker Corporation (Syk) Company Profile & Facts.” Yahoo! Finance , Yahoo!, 1 Feb. 2024, finance.yahoo.com/quote/SYK/profile?p=SYK. “Stryker’s (Syk) Q4 Earnings & Revenues Surpass Estimates.” Yahoo! Finance , Yahoo!, finance.yahoo.com/news/strykers-syk-q4-earnings-revenues-155000210.html. Accessed 31 Jan. 2024.