ROE Kings: Maximizing The Return On Your Equity

A lot of time is spent looking for stocks that are “cheap,” but don’t you want to invest in a company that can efficiently earn returns on the capital you provide them? Just because a company is priced low doesn’t mean its a great buy. However, a company that can put investors money to good use is usually a keeper in your portfolio.

With this in mind, we screened for Large Cap Stocks that offered superior returns on equity of over 50%. ROE is a measure of how much profit a company generates on the capital provided by shareholders.

Business Section: Investing Ideas

Our screen produced the results below. We compare each companies ROE to the ROE of their peers:

1. Colgate-Palmolive Co. ( CL): Together with its subsidiaries, manufactures and markets consumer products worldwide. Market cap at $50.68B, most recent closing price at $107.26. ROE = 95.25% vs. Peers = 27.88%

2. Coach, Inc. ( COH): Engages in the design and marketing of accessories and gifts for men and women in the United States and internationally. Market cap at $16.72B, most recent closing price at $58.92. ROE = 54.86% vs. Peers = 26.27%

3. Ford Motor Co. ( F): Develops, manufactures, distributes, and services vehicles and parts worldwide. Market cap at $43.67B, most recent closing price at $11.67. ROE = 142.46% vs. Peers = 11.73%

4. Hershey Co. ( HSY): Engages in manufacturing, marketing, selling, and distributing various chocolate and confectionery products, pantry items, and gum and mint refreshment products worldwide. Market cap at $16.54B, most recent closing price at $74.10. ROE = 68.43% vs. Peers = 16.39%

5. Moody’s Corp. ( MCO): Provides credit ratings and related research, data, and analytical tools; risk management software; and quantitative credit risk measures, credit portfolio management solutions, and training services in the United States, Europe, the Middle East, and Africa. Market cap at $11.32B, most recent closing price at $50.79. ROE = 982.29% vs. Peers = 43.43%

6. The TJX Companies, Inc. ( TJX): Operates as an off-price apparel and home fashions retailer in the United States and internationally. Market cap at $31.85B, most recent closing price at $43.68. ROE = 53.45% vs. Peers = 22.70%

 

Written by Nick Sousa

 

Analyze These Ideas: Getting Started

Did you find this list useful as a starting point for your analysis? Do you have a list requests? Leave your comments below and we’ll do our best to deliver.

null

More from Stocks

Starbucks Just Revealed Some of the Most Worrying Data in Its History

Starbucks Just Revealed Some of the Most Worrying Data in Its History

Salesforce Is Hitting on All Cylinders as Shares Notch an All-Time High

Salesforce Is Hitting on All Cylinders as Shares Notch an All-Time High

Trump's Tariff Attack Hasn't Brought Pain to These Hot Stocks

Trump's Tariff Attack Hasn't Brought Pain to These Hot Stocks

Why GE's Stock Has Fallen 15% in the Last 30 Days

Why GE's Stock Has Fallen 15% in the Last 30 Days

Banks Prepare to Up Shareholder Payouts By $30 Billion

Banks Prepare to Up Shareholder Payouts By $30 Billion