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P/E ratios, strengths, weaknesses

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I cannot figure out the P/E ratios to tell what the differences between the two companies would be and what the strengths and weaknesses are of both companies. I'm having a final tomorrow and will have a problem similar to this one. Can someone please help?

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1. Compare the two companies,

-XYZ is more liquid than ABC
-Activities (i.e. turnovers) are similar
-ABC is more leveraged (i.e. ABC has more borrowed funds than XYZ)
-ABC is by far more profitable than XYZ

ABC's biggest weakness is that it has too much debt, while its strength is its ...

Solution Summary

P/E ratios, strengths, weaknesses, differences between company abc & xyz