Two online magazine companies reported the following in their financial statements:

	BetterWorth							Outdoor Fun
	2018			2017				2018			2017
Net income	$	112,500		$	109,104			$	94,500		$	172,673
Total stockholders' equity		612,186			537,814				472,151			492,049
Earnings per share		3.70			3.69				2.60			4.48
Stock price when annual results reported		55.65			52.29				33.80			60.95

Required:

1-a. Compute the 2018 ROE for each company.

1-b. Which company appears to generate greater returns on stockholders equity in 2018?

2-a. Compute the 2018 P/E ratio for each company.

2-b. Which company do investors appear to value more?