It's a useful number for comparing competing companies in the same industry.
Care should be used when comparing companies with very different capital structures.
Studies that do not compare companies of the same size and age are skewed, they contend.
As with many financial ratios, ROE is best used to compare companies in the same industry.
The group hopes that most countries will adopt the international rules so that investors can easily compare companies around the world.
Having said that, I can't think of a more meaningless metric to compare companies by than market cap.
It is a reputable consumers' magazine comparing different companies of same branch.
"I would go do some research and compare companies, that way you can try and get the best deal."
Techniques from competitor analysis can be used to compare companies over time.
He explained that pricing was a three- to four-month process of comparing companies against their peers.