Identify and explain three potential aws inherent in this measurement of the price-earnings ratio as a valuation multiple when comparing companies A and B

What makes one company more valuable than another. For example, assume there are two companies with the exact same assets and liabilities, and both produce the same product and sell in the same market. Company A has net assets of $10M and a net profit of $1M (ROA 10%) Company B has net assets of $10M anda net profit of $2M (ROA 20%) The difference in profits between the two companies can generally be considered to be one of management strategy - what are the competitive advantages that company B has implemented to generate the higher profits? This is the question that we as analysts need to understand, and as part of the analysis we have to compare both A and B companies