Using ROE, P/B ratio and P/E ratios, discuss the market's expectation on future performance of A and B relative to their current performance (current ROE / profitability). Company A and B are in the same industry

Company A:

ROE: 5%

Price-to-book (P/B) ratio: 1.2

Price-to-earnings (P/E) ratio: 7

Company B:

ROE: 31%

Price-to-book (P/B) ratio: 7

Price-to-earnings (P/E) ratio: 21