The Radiator Springs Company and the Lightning McQueen Corporation both produce and sell vehicles. All vehicles are sold on credit. Radiator Springs Company follows a $$Cost Leadership$$ strategy $($focusing on being an economical choice$)$ while Lightning McQueen Corporation follows a $$Differentiator$$ strategy $($focusing on differentiating its products and$/$or services$).$

In the current year, Radiator Springs has an ROA of $10\%$ with a financial leverage ratio of $1\mathrm{.}20.$ Lightning McQueen has an ROA of $5\%$ with a financial leverage ratio of $3\mathrm{.}00.$ Which company has the higher return on equity $($ROE$)?$