This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

4 Overlooked International Stocks That Could Outdo U.S. Counterparts

Stocks in this article: TOT CVX RDS.A XOM NSRGF HSY SAP ORCL

NEW YORK (TheStreet) -- I've had my eye -- and my clients' money -- on four international stocks that have shown they can outdo their U.S.-based counterparts.

First, let's take a step back. Diversification has proven itself repeatedly to be the strategy of choice for the long-term investor. However, that word means different things to different investors and portfolio managers.

What's more important, one might ask -- the country of domicile, the markets where total revenues come from, or the sector?

Read More: Time's Up! Alibaba or Softbank Should Buy Yahoo! Now

I would argue that if you're balancing your portfolio by sector, then there are many companies where the country of domicile is moot -- as long as it's a stable Western nation -- and that some similar international corporations are either comparably dependent on the same global regions or vary wildly in the sources of their international revenue.

In other words, that word -- international -- can trip up even an experienced investor.

On to My Choices

Now to my picks. My picks all have revenue that is arguably more internationally diverse than their U.S. counterparts (domestic being defined for the purpose of this argument as the U.S., and international as outside the U.S.).

Five out of the five companies have better yields than their U.S. counterparts, and three of the five have better three-year returns; two of the three-year laggards have better one-year returns.

All numbers are based on each company's final results for their most recent fiscal year using 10-K form for U.S. companies and 20-F filed with the SEC for their foreign counterparts.

Read More: Mixed Signals Abound; Tough Decisions: Jim Cramer's Best Blogs

1. In the energy sector, France's Total (TOT - Get Report) bests its U.S.-based counterpart -- Chevron (CVX - Get Report) -- by every measure. (For more on this, see "Trade Ideas: Total Is Today's "Roof Leaker" Stock.")

On Monday at 1 p.m., Total was trading at $65.12, up 0.65% for the day. Chevron was trading at $126.87, down 0.8% for the day.

Total boasts a yield of 4.6% to Chevron's 3.2%, and Total's year-to-date (15.04%), one-year (15.04%) and three-year returns (45.11%) dominate over Chevron's returns of 8.82%, 8.17% and 36.45%, respectively. (The two companies are also joint-venture partners in several projects.)

According to SEC filings, as of the previous fiscal year, the companies had combined upstream/downstream total revenue in the following splits:

  • Total: World $30.360 billion; US $1.611 billion; U.S. percentage: 5.31%
  • Chevron: World $228.848 billion; U.S. $174.318; U.S. percentage: 76.2%

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,416.85 +225.48 1.31%
S&P 500 2,021.25 +19.09 0.95%
NASDAQ 4,683.4070 +45.4130 0.98%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs