Why is E.T. better than an orphan?
Because he found his way home.
E.T. vs Orphan
Explanation
The joke plays on the common understanding that orphans are often without a home. E.T., a character famous for needing to find his way home, is used as a comparison. The punchline creates humor by implying that finding a home makes E.T. 'better' than an orphan.
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