Given the ratios below, which company's common stock would you purchase and why? Based upon each ratio, intercompany comparisons and comparisons to the previous year. Thank you!

BURL Current market price is $316.56

(Figures taken in thousands except no. of shares)

2020

Return on Equity =Net income /Equity Shareholders fund

= 414745/322710 = 1.285 times

Return on Investment= EBIT / Investments

Here investment is taken as total assests. It depends on the situation. Investment is also taken as Net worth of the co. also.

EBIT= Income before interest and tax.

= (507584+55990)/3079172 = 18.3%

Net Margin = (Revenue - Cost) / Revenue

= (7286398-6821282)/7286398 = 6.3%

Asset Turnover = Total Sales / Average Asset

Average Asset =( Asset at the beginning of the year + Asset at the end of the year) / 2

= (2812829+3079172)/2 = 2946000.5

Asset Turnover = Total Sales / Average Asset \

total sales = total revenue =7286398/2946000.5 =2.47 times

PE ratio= market value per share / earning per share (basic)

Similarly, dilutes EPS can also be used

=316.56/7.05 =44.9 times

DDS Current stock price: $93.69

2019

Return on Equity = Net Income / Shareholders Equity

= 170,263 / 1,678,381 = 0.101

Net Margin = Net Income / Total Sales

= 170,263 / 6,503,349 = 0.026

Asset Turnover = [Total Sales / (Beginning Assets + Ending Assets)/2 ]

= [ 6,503,349 / (3,682,703 + 3,431,369)/2 ] = 6,503,349 / 3,557,036 = 1.83

Price-earning ratio = Share Price / Earning Per Share

= 93.69 / 6.23 = 15.04

2020

Return on Equity = Net Income / Shareholders Equity

= 111,081 / 1,623,259 = 0.068

Net Margin = Net Income / Total Sales

= 111,081/ 6,343,211 = 0.018

Asset Turnover = [Total Sales / (Beginning Assets + Ending Assets)/2 ]

= [ 6,343,211 / (3,431,369 + 3,430,257)/2 ] = 6,343,211 / 3,430,813 = 1.85

Price-earning ratio = Share Price / Earning Per Share

= 93.69 / 4.38 = 21.39