You are planning to invest in one of two companies in the automobile manufacturing industry. You have gathered the information necessary to compare the Expanded DuPont Model for the two firms:

ROE = Profit Margin X Total Asset t/o X Equity Multiplier

Company A: 10.62% = .038 X 2.15 X 1.30

Company B: 11.45% = .047 X 1.74 X 1.40

Which of these two alternatives is the better investment for you? Explain your answer. List two additional pieces of information that you would like to see before making your decision.