Denise has a choice between two stocks. Stock A has a current stock price of $33.50 and earnings per share of $2.23. Stock B has a current stock price of $30.50 and earnings per share of $2.79. Both stocks are in the same industry, and the average P/E ratio for the industry is 13. Using the P/E ratio, which stock is the better choice? Why?
Balance Sheet for Polly Corporation (in millions)

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Assets Cash and marketable securities Accounts receivable Inventories Net fixed assets Total assets Liabilities and Shareholders Equity Accounts payable Short-term debt Long-term debt Shareholders' equity Total liabilities and shareholders equity Income Statement for Polly Corporation in millions) Revenue 150 320 430 700 $1600 $ 350 100 300 850 $1600 $4500 2800 1700 1200 Cost of goods sold Gross profit Operating expenses Earnings before interest costs and taxes (EBIT) Interest Earnings before taxes Taxes Earnings after taxes 500 50 450 200 250