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

	BetterWorth		Outdoor Fun
	2021	2020	2021	2020
Net income	$ 108,500	$ 108,304	$ 89,920	$ 171,873
Total stockholders' equity	572,186	497,814	432,151	452,049
Earnings per share	2.90	2.89	1.80	3.68
Stock price when annual results reported	54.15	50.29	31.80	58.95

Required:

1-a. Compute the 2021 ROE for each company.

1-b. Which company appears to generate greater returns on stockholders equity in 2021?

2-a. Compute the 2021 P/E ratio for each company.

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