Company A and Company B are in the same industry and have very close strategies so we can assume that they have the same operating risk. If Company A has a return on sales of 10% and Company B has a return on sales of 8% which firm probably has the more differentiated product?

Continuing with Company A and Company B from the prior problem, if Company A turns it invested capital 1.6 times and Company B turns it capital 2.0 times which company is more efficient in its operations?