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

	BetterWorth							Outdoor Fun
	2018			2017				2018			2017
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		53.65			50.29				31.80			58.95

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?