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ROA stands for Return on Asset. It is one of the metrics used by investors to evaluate the stock and the ability it has in generating profit. The formula is basically the net income divided by the total assets.It measures how efficient the company is in generating profits over all the assets and resources it owns or controls. It can be sign that the company is not going well if the the ROA is low meaning the inability of generating return.

ROE stands for Return on Equity. It is also one of the metrics used by investors to analyze the company numbers an ability to generate profit. Investors use this measure to decide about invest or not in the company. By dividing the net income by the shareholders equity investor find the ROE. The sign of a good business with a growth potential is a high ROE which increases the stock and the intrinsic value.