This Day On The Street
Continue to site
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

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

2. Also in the energy sector, Netherlands-based Royal Dutch Shell (RDS.A) beats ExxonMobil (XOM) in three of the four categories we looked at. Shell has a yield of 4.59% (vs. Exxon's 2.67%), and its YTD returns (17.91% vs. Exxon's 3.37%) and one-year returns (25.78% vs. Exxon's 11.67%) also dominate. On three-year returns, Shell and Exxon are close, but Exxon does edge out its counterpart at 32.01% to 27.86%.

In terms of revenue, the companies do not report precisely the same, but you can get a rough idea from the following:

  • Royal Dutch Shell (total revenue by geographical area): World: $451.235 billion; U.S. $72.552 billion; U.S. percentage 16.08%
  • Exxon Mobile (sales & operating revenue): World $420.836; U.S. $152.820; U.S. percentage 36.31%

3. In consumer staples, I put Nestle (NSRGF) up against Hershey (HSY). The Swiss-based Nestle bests its U.S. counterpart Hershey in terms of yield (3.15% vs. Hershey's 2.31%), YTD returns (7.45% vs. Hershey's drop of 3.93%) and one-year returns (17.06% vs. Hershey's 0.50%). However, regarding three-year returns, while Nestle shows a respectable 31.03%, it is well below the 69.25% from Hershey.

In terms of total revenue by region, the companies break down as follows:

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

  • Nestle: Global 92.2 billion Swiss francs (about $101 billion); the Americas 40.0 billion Swiss francs (about $44 billion) (note that the U.S. is not broken out separately by Nestle); Americas percentage 43.38%
  • Hershey: Global $7.146 billion, and North America $5.960 billion (which includes the U.S. and Canada); North America percentage 83.40%.

Hershey did note that sales outside the U.S. and Canada increased approximately 15.7% year-over-year.

4. In the information technology sector, I like to compare SAP (SAP) to Oracle (ORCL). The German SAP's yield (1.69% vs. Oracle's 1.19%) and three-year returns (41.53% vs. Oracle's 29.34%) beat those of its U.S. counterpart. However, in all fairness, Oracle can boast better YTD returns (-5.71% for SAP vs. 6.38% for Oracle) as well as one-year returns (11.09% for SAP vs. 26.19% for Oracle).

In terms of total revenues by region the number are as follows:

  • SAP: Global 16.814 billion euros ($22.6 billion); U.S. 4.661 billion euros ($6.2 billion); U.S. percentage 27.72%.
  • Oracle: Global $32.275 billion; the Americas $20.323 billion (Note that the U.S. is not broken out separately); Americas percentage 62.97%.

Although they are both major players in all sectors of "big data," in terms of worldwide enterprise resource planning software market share, SAP's 25% is nearly double that of Oracle's 13%. Certainly it can be shown that SAP, like all the above mentioned international companies, has worldwide sales more diverse than its U.S. competitor.

For these as well as the other reasons mentioned, I would always advise that, where appropriate, you consider internationally based companies that are comparable to their U.S.-counterparts to see if one of the other might give your portfolio an edge up on pure domestic plays.

At the time of publication, the author held no positions in any of the stocks mentioned, although positions may change at any time.

This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.

TheStreet Ratings team rates CHEVRON CORP as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:

"We rate CHEVRON CORP (CVX) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, attractive valuation levels, good cash flow from operations and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had somewhat weak growth in earnings per share."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • CVX's debt-to-equity ratio is very low at 0.15 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.02, which illustrates the ability to avoid short-term cash problems.
  • Net operating cash flow has increased to $8,417.00 million or 47.30% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 18.80%.
  • CVX, with its decline in revenue, slightly underperformed the industry average of 1.5%. Since the same quarter one year prior, revenues slightly dropped by 6.2%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • In its most recent trading session, CVX has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr 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

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
CVX $101.32 0.00%
TOT $49.23 0.00%
AAPL $94.88 -0.32%
FB $116.77 -0.56%
GOOG $692.36 0.00%


Chart of I:DJI
DOW 17,750.91 -140.25 -0.78%
S&P 500 2,063.37 -18.06 -0.87%
NASDAQ 4,763.2240 -54.37 -1.13%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs