We ran an additional screen to further narrow down our list, this time looking for companies with a return on investment (ROI) higher than the industry average. ROI is a performance metric that assesses the profitability of an investment by dividing the benefit of an investment by its cost. The formula for calculating ROI is:ROI = (Gain from Investment – Cost of Investment) / Cost of Investment In the formula, gain from investment describes the money earned from selling the investment. We were left with two stocks on our list. Click on the image below to see sales data over time. Sourced from Zacks Investment Research. Do you expect the growth in e-commerce to help these stocks maintain a high ROI? Use this list as a starting point for your own analysis. 1. Stamps.com Inc. ( STMP): Provides Internet-based postage solutions. Market cap at $618.98M, most recent closing price at $40.47. Diluted normalized EPS increased from 0.38 to 0.64 during the first time interval (12 months ending 2010-12-31 vs. 12 months ending 2009-12-31). For the second time interval, diluted normalized EPS increased from 0.64 to 1.73 (12 months ending 2011-12-31 vs. 12 months ending 2010-12-31). And for the last time interval, the EPS increased from 1.73 to 2.3 (12 months ending 2012-12-31 vs. 12 months ending 2011-12-31). TTM Return on Investments at 27.3% vs. an industry average at 10.84%
2. OpenTable, Inc. ( OPEN): Provides restaurant reservation solutions in the United States, Canada, Mexico, Europe, and Asia. Market cap at $1.67B, most recent closing price at $72.30. Diluted normalized EPS increased from 0.23 to 0.28 during the first time interval (12 months ending 2010-03-31 vs. 12 months ending 2009-03-31). For the second time interval, diluted normalized EPS increased from 0.28 to 0.55 (12 months ending 2011-03-31 vs. 12 months ending 2010-03-31).
And for the last time interval, the EPS increased from 0.55 to 0.8 (12 months ending 2012-03-31 vs. 12 months ending 2011-03-31).TTM Return on Investments at 16.81% vs. an industry average at 10.84%
( List compiled by Mary-Lynn Cesar, Kapitall contributor. Accounting data sourced from Google Finance. EPS data sourced from Yahoo! Finance. All other data sourced from Finviz.)