COMPARE compares two objects in your inventory. If both objects are weapons, it will report the one with the better average damage. If both objects are armor, it will report the one with the better armor class.
COMPARE with one argument compares an object in your inventory to the object you are currently wearing or wielding of the same type.
COMPARE doesn’t consider any special modifiers of the objects.
COMPARE is NOT foolproof. Use the information you gather from COMPARE and compare it to APPRAISE.