Offer your thoughts or opinion on the input financial query or topic using your financial background.

Different ways of looking at P/E Ratio vs EPS
all other things being equal if you have two stocks, both with a P/E   of 2, and one has an EPS of 5 whereas the other has an EPS of 10 is   the latter a better purchase? What this really boils down to is the number of shares a company has outstanding.  Given the same earnings & P/E, a company with fewer shares will have a higher EPS than a company with more shares.  Knowing that, I don't think the number of shares has much if anything to do with the quality of a company.   It's similar to the arguments I hear often from people new to investing where they think that a company with a share price of $100/share must be better than a company with a share price of $30/share simply because the share price is higher.