NEW YORK ( TheStreet) -- As the National Basketball Association finals between the Miami Heat and the San Antonio Spurs continue, TheStreet's Jim Cramer and "Mad Money" Research Director Nicole Urken compared two companies, one from each team's city.
Valero, a standout in the oil refining industry, slightly edged out Burger King in both their minds. While Burger King has solid growth among its peer group, Valero appears to have more upside potential because the burger chain has already seen a large run up in its stock this year.
Urken pointed out that upside potential was really the only way to compare the two companies since margins, sales and most other metrics would mean very little due to the companies being so different from one another.Cramer suggested that funds pick their stocks the same way. They do not pick stocks like Valero simply because they are looking for a refinery. They pick Valero because it has perceived value and justified upside potential. He concluded that it's important for investors to know why stocks trade the way they do and why people pick certain companies over others. -- Written by Bret Kenwell in Petoskey, Mich. Follow @traderboy23