Talisman Energy and Suncor Energy reported the following investor-related information recently:
_____________________ Talisman Energy __________Suncor Energy
Earnings per share .............. $1.35 ............................. $3.02
Payout ratio ..................... 19.9% ........................... 14.3%
Price-earnings ratio ............ 11.6 times ................... 9.6 times
Profit margin .................... 16.6% ........................... 11.7%
Return on equity ............... 14.6% ............................ 12.4%
Instructions
(a) Based on the above information, can you tell which company is more profitable?
(b) Which company do investors favour?
(c) Which company would investors most likely purchase shares in for growth purposes? For dividend income?