A Trio of Stocks Yielding High Returns on Equity

These businesses have been very efficient in generating profits so far

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Alberto Abaterusso
Jul 14, 2021

Summary

  • Sony Group, Generac Holdings and Grand Canyon Education are yielding better return on equity ratios than most of their peers.
  • Wall Street is positive about these stocks.
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When a company's return on equity ratio is better than most of its competitors, it may mean the company has been very efficient in generating profits. Thus, investors could be interested in the following stocks, as they are beating most of their peer group companies in terms of a higher ROE ratio.

Sony Group

The first stock investors could be interested in is Sony Group Corp. (

SONY, Financial), a Tokyo-based global consumer electronics company.

Sony Group has a ROE ratio of 23.96% (versus the industry median of 5.96%), ranking it higher than 91.39% of 2,288 companies that are operating in the hardware industry.

The share price was $105.10 in early trading on Wednesday, increasing 36.77% over the past year, for a market capitalization of $130.12 billion and a 52-week range of $72.45 to $118.50.

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The stock has a price-book ratio of 2.58 and a price-earnings ratio of 12.43.

GuruFocus has assigned a score of 5 out of 10 for the company's financial strength rating and its profitability rating.

On Wall Street, the stock has a median recommendation rating of overweight and an average target price of $130.27 per share.

Generac Holdings

The second stock investors could be interested in is Generac Holdings Inc. (

GNRC, Financial), a Waukesha, Wisconsin-based manufacturer of power generation equipment and storage systems for residential as well as light commercial and industrial use worldwide.

Generac Holdings has a ROE ratio of 36.34% (versus the industry median of 6.31%), which ranks higher than 97.83% of the 2,532 companies that are operating in the industrial products industry.

The share price has increased by 232.1% over the past year to trade at $444.80 on Wednesday for a market capitalization of $27.97 billion and a 52-week range of $126.02 to $452.92.

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The stock has a price-book ratio of 18.35 and a price-earnings ratio of 62.23.

GuruFocus has assigned a score of 6 out of 10 to the company's financial strength rating and 9 out of 10 to its profitability rating.

On Wall Street, the stock has a median recommendation rating of buy with an average target price of $437 per share.

Grand Canyon Education

The third stock investors could be interested in is Grand Canyon Education Inc. (

LOPE, Financial), a Phoenix-based provider of higher education services in the U.S.

Grand Canyon Education has a ROE ratio of 17.31% (versus the industry median of 5.6%), ranking it higher than 85.78% of the 218 companies that are operating in the education industry.

The share price has fallen by nearly 2% over the past year to trade at $91 on Wednesday, determining a market capitalization of $4.22 billion and a 52-week range of $75.64 to $115.96.

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The price-book ratio is 2.66 and the price-earnings ratio is 16.07.

GuruFocus has assigned a score of 8 out of 10 to the company's financial strength and profitability ratings.

On Wall Street, the stock has a median recommendation rating of buy with an average target price of $122 per share.

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Disclosures

I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
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