Net profit margin-return on assets and return on equity


Problem:

After reviewing financial data on MCD and WEN, and gathering ratios figures, it obvious to see how numbers are arrived at. However, for a non-finance person, what are some of the in-depth understanding is what I'm trying to get a good capture. I want some direction on whether to recommend investments on these companies and support it with not just numbers but a greater understanding. Here are the questions I need some help with:

1. Would you invest in McDonald's or Wendy's or recommend these companies to new investors? Please elaborate based on net profit margin, return on assets, and return on equity.

2. Discuss risk with both MCD and WEN.

3. Based on 5, 10, 15-year history of MCD and WEN stock price, make correlation/comparison to S&P 500, and comment. If charts are available, please include.

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Finance Basics: Net profit margin-return on assets and return on equity
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