Green Caterpillar Garden Supplies Inc. has a debt$-$to$-$equity ratio of $4\mathrm{.}00,$ compared to the industry average of $4\mathrm{.}80.$ Its competitor Peaceful Greens and Gardens, however, has a debt$-$to$-$equity ratio of $3\mathrm{.}20.$ Based on what debt$-$to$-$equity ratios imply, which of the following statements is true?

Green Caterpillar has greater financial risk as compared to PG&G but lower than the average financial risk in the industry.

Green Caterpillar has higher creditworthiness as compared to PG&G$.$

PG&G$$s creditors face higher risk than the average financial risk in the industry.

PG&G has a greater risk of bankruptcy than Green Caterpillar.