Question

Both Maytag and Whirlpool are listed SIC 3630 Household Appliances. They have comparable products yet their financial results are significantly different. Read both 10-K filings and then compare, contrast and comment on their differences. Give your opinion as to the reason for the difference in results and, collectively, attempt to arrive a consensus of which company would be better to work for and invest in. Give an original comparative comment on each different aspect listed above as well as a relevant response to at least two other students comments.

Answer 1

Answer;-

Financial results for Maytag and Whirlpool are significantly different due to the difference in the size of their operations.

• Maytag is a much smaller firm when compared to Whirlpool.
• Whirlpool has a thriving presence across the globe with operations in North America, Europe, Latin America and Asia.
• On the other hand Maytag is highly dependent ion USA for its sales and its proportion of sales outside USA is only 12%.
• In contrast Whirlpool generates around 40% of its sales from other regions outside USA.
• Whirlpool will be a better company to work as well as to invest in  Work wise Whirlpool will provide a better exposure
• due to its large scale of operations when compared toMaytag With regards to investments as Whirlpool’s operations are spread across different regions
• its business risk is better insulated that Maytag. Hence its stock has the better upside potential than Maytag.

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