What are the best ways to compare and contrast the relative merits of two companies?

Question

I have two local banks that I need to compare. What factors should I evaluate to determine which company appears better positioned for future growth?

Answer 1

i suggest that you can base your analysis on 2 main factors: the internal and external environment.

ext. environment: first you can try to see the current business, economic and development in the banking arena, what future investments will be popular and any threats that may hinder the banking market growth.

int environment: next, you can analyse which of the 2 companies can better ride on the growing trend in the banking industry and at the same time turn the threats to opportunities with its company structure, products and services, human capabilities, business strategies and leaders.

a point to note, a company that has well growth now doesnt mean it have the capability to sustain and ride on the new tide in future. thus, do remember to tie both ext. and int. environment in the analysis.

Answer 2

The amount of volume currently in the bank (how many people are customers). If you are a customer, you want to spend the least amount of time in the bank so you would look for the shortest waiting lines, longest available hours. If you are looking at the business side, you would want the place which has the most customers and is meeting their needs the best.

If you are a customer, you want to look for the lowest interest rates and perks. If you are a bank mgr deciding which of the two is better, you would look at which bank is more profitable (making the most amount of money while keeping the cost lower).

For future growth, as a potential employee look at their benefits and their promotion process. (Do they hire within, do they offer additional training which would put you in better position for a promotion.) As a business person determining future growth, look at the area of the bank. Is the retail value of the homes increasing due to new businesses coming to the area (which means more people traveling your way, which means the bank is on their route and is a better choice for them to bank at) or are the home values decreasing due to high crime rates (is your bank at a higher potential of being robbed or people moving away from your location which means less customers.)