Is it more desirable for a company to generate more profit dollars or maximize profit margins? So, as an example, would you prefer to have a company sell $100 of revenue at a 50% profit margin or $200 of revenue at a 25% profit margin?
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Depends on the company. In general though, if you had the choice to own two companies with the same profit, but different margin profiles, you would want the one with higher margins. Companies with higher EBITDA/profit margins tend to trade for higher multiple (more specialized offering, higher value-add/barriers to entry, etc).
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