An analyst makes the following statements to explain the use of fundamentals in comparables:

• Statement 1: Insights from the method of comparables based on forecasted fundamentals cannot be incorporated in explaining valuation differences, because we rarely find exact comparables.

• Statement 2: We can use the method of comparables based on forecasted fundamentals, which involves forecasting the company's fundamentals rather than making comparisons with other companies.

Which of the above statements is correct?