Pls help with this business question!?

Question

In an analysis of a potential investment in two stocks in the same industry, would you compare the Earnings per Share of the two companies to each other, and also to an industry average for Earnings per Share?

Why or why not?

Answer 1

In addition to the present earnings per share I would compare their past performance  as well as the potential for future growth.

You need to draw a line joining the present with the past and extrapolate it to the future.

If your analysis is to  decide between 2 companies within a sector I don't see the  need for an industry average, assuming that you've picked those at the top end.