Sears, Roebuck and JCPenney are two giants of the retail industry. Both offer full lines of moderately priced merchandise. Annual sales for Sears total $53 billion. JCPenney is smaller, with $20 billion in revenues. Compare the two companies as a potential investment based on the followingratios:

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JCPenney Ratio Sears 10.9 P/E 15.0 Gross profit margin Profit margin 28.6 39.3 2.8 5.7 Current ratio 1.5 1.9 Debt-to-equity Return on equity 1.4 2.0 12.0 27.8 5.2 Return on assets 9.3 Dividend yield Earnings per share 0.0 1.4 $ 9.17 $ 5.20