Question

Gross profit and net profit margins of companies A and B from different industries are as follows, 15%-5% A, 45%-15%B. Industry average gross and net profit margins for A and B are as follows, 12%-2% Industry A, 48%-21% Industry B. As an investor which

Answer 1

This comparison shows that company A is a better alternative. Company A provides more gross profit and more net profit than the overall industry. On the other side company B has a poor performance compared to industry averages.