You are analyzing the financial performance of two pharmaceutical companies, PharmaCo and BioGen, to assess their profitability.

Requirements:

1. PharmaCo reported a net income of $60 million and shareholders' equity of $300 million for the fiscal year 2023. BioGen recorded a net income of $80 million and shareholders' equity of $400 million during the same period.
2. Calculate the return on equity (ROE) for both companies.

Analyze which company demonstrates higher profitability relative to its shareholders' equity.