11. Wilhelm M¨uller, CFA, has organized the selected data on four food companies that appear below (TTM stands for trailing 12 months):

Hormel Foods Tyson Foods IBP Corp Smithfield Foods Stock price $25.70 $11.77 $23.65 $24.61 Shares out (1,000s) 138,923 220,662 108,170 103,803 Market cap ($ mil) 3,570 2,597 2,558 2,523 Sales ($ mil) 4,124 10,751 17,388 6,354 Net income ($ mil) 182 88 122 252 TTM EPS $1.30 $0.40 $1.14 $2.31 Return on equity 19.20% 4.10% 6.40% 23.00%
Net profit margin 4.41% 0.82% 0.70% 3.99%
On the basis of the data given, answer the following questions:
A. Calculate the trailing P/E and P/S for each company.
B. Explain on the basis of fundamentals why these stocks have different P/Ss.