When comparing two companies, the company with the highest net income should normally have the highest stock price.

Question

Quizplus · Accepted Answer

The stock price of a company is influenced by a variety of factors, including its net income, but it is not the only factor. Other factors include revenue growth, market share, industry trends, economic conditions, and investor sentiment. Therefore, it is possible for a company with a lower net income to have a higher stock price than a company with a higher net income.

When Comparing Two Companies, the Company with the Highest Net