You are evaluating the asset utilization of two telecommunications companies, TelCom and ConnectX, to assess their operational efficiency.

Requirements:

1. TelCom generated a net income of $40 million with total assets of $400 million for the fiscal year 2023. ConnectX reported a net income of $50 million with total assets of $500 million during the same period.
2. Calculate the return on assets (ROA) for both companies.
3. Analyze which company generates a higher return relative to its total assets.