This study analyzed the factors that influence the Return on Equity for domestic manufacturing and financial companies that are listed on Dar es Salaam Stock exchange. Three factors were analysed based on Dupont System namely Profit Margin, Total Assets Turnover and Equity Multiplier. A comparison of the factors was between manufacturing sector and financial sector to determine if there were any significant differences of the two sectors. Unbalanced panel data obtained from the financial statements of the companies from 2000 to 2015 was obtained, based on the fact that at least included candidate has 5 years of trading and financial reporting. A total of 93 observations was collected, and when cleaned, 86 observations remained with 22 on the financial services sector. Data was cleaned and tested based on various measures such as normality tests, unit root test and model specification test. A multiple regression model was used and the results indicated that Profit Margin had the most influence on the return on equity followed by Total Assets Turnover and lastly the Equity Multiplier. Profit Margin and Total Assets Turnover had a positive relationship with Return on Equity while Equity Multiplier was negatively related to Return on Equity, the comparative results between the two sectors indicated that there were significance means difference between the factors that influenced the Return on Equity in manufacturing and financial sectors.