An analyst plans to use P/E and the method of comparables as a basis for recommending purchasing shares of one of two peer-group companies in the business of manufacturing personal digital assistants. Neither company has been profitable to date, and neither is expected to have positive EPS over the next year. Data on the companies prices, trailing EPS, and expected growth rates in sales (five-year compounded rates) are given in the following table:

Company	Price	Trailing EPS	P/E	Expected Growth (Sales)
Hand	$22	$2.20	NM	45%
Somersault	$10	$1.25	NM	40%

Discuss how the analyst might make a relative valuation in this case.