Sears Canada Inc. and Canadian Tire Corporation are two giants of the Canadian retail industry. Both offer full lines of moderately priced merchandise. Annual sales for Sears total \(\$ 5.2\) billion. Canadian Tire is somewhat larger, with \(\$ 10\) billion in revenues. Compare the two companies as potential investments based on the following ratios:

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Ratio P/E Profit margin Quick ratio. Current ratio Debt-to-equity Return on equity Return on assets Dividend yield Sears Canada Canadian Tire 13.3 14.0 4.5% 3.9% 1.02 1.54 1.8 1.99 1.05 1.38 14.9% 9.2% 7.6% 5.2% 0% Earnings per share Price per share at year-end Dividends per share 0% $ 2.15 $29.0 S 0 $ 4.10 $57.5 $ 0.84