With A the earnings are 2 per share and with B the are earnings are 5 per share. Featuring real-time access to consensus analytics analyst-level detail. The Price Earnings Ratio P E Ratio Is The Relationship Between A Company S Stock Price And Earnings Per Share Financial Ratio Investing Cash Flow Statement Based on the EPS Company B is by far the better choice. . Capitalize on the Release of New Earnings Estimates. Net Income - Dividends on Preferred Stock Average Outstanding Shares. This is why it makes sense to look at EPS as a tool to compare firms. What It Means and How to Calculate It Earnings per share EPS is the portion of a companys profit allocated to each outstanding share of common stock serving as a. You can calculate a companys EPS using this formula. Ad Zacks Experts Just Revealed the Secrets Behind Making Money Using Earnings Reports. Get Your Free Report Now. Earnings Per Share EPS. Ad Unl