The purpose of this study is to investigate whether investors misprice industry-wide and firm-specific earnings components in the different level of competition industries. Theory of economic suggests that the industry-wide earnings component is more persistent than firm-specific earnings component. If investors tend to misprice the persistence of industry-wide and firm-specific earnings (Hui et al., 2016), and if these effects are exacerbated by low-competition industries (Baginski et al., 1999; Rachmawati et al., 2016), we predict that investors more tend to misprice industry-wide and firm-specific earnings in the low-competition industries than in the high-competition industries. The results provide evidence which is consistent with the prediction. Finally, we show that market also fail to fully distinguish that industry-wide cash flows is the most persistent component of earnings while firm-specific accruals is the least persistent in the different level of competition industries.