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3 Large-Cap Stocks With High Return on Equity

These businesses have been very efficient in generating profits

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Alberto Abaterusso
Oct 27, 2021

Summary

  • Deere & Co, United Rentals Inc and Carlyle Group Inc have higher return on equity ratios than most of their peers.
  • Wall Street likes these stocks.
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When a company's return on equity (ROE) ratio is better than most of its competitors, it generally indicates that the company has been very efficient in generating profits. Thus, investors may want to consider the following stocks, as they are performing better than most of their peer group companies in terms of a higher ROE ratio.

Deere & Co

The first stock investors could be interested in is Deere & Co (

DE, Financial), a Moline, Illinois-based global manufacturer and supplier of farm and heavy construction machinery.

Deere & Co has a ROE ratio of 43.27% (as of Jul. 2021) versus the industry median of 13.04%, ranking higher than 67% of 33 companies that are operating in the farm and heavy construction machinery industry.

The share price was $341.15 at close on Tuesday, having increased 52.73% over the past year for a market capitalization of $105.78 billion and a 52-week range of $221.73 to $400.34.

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The stock has a price-earnings ratio of 19.77 and a price-book ratio of 6.72.

GuruFocus has assigned a score of 3 out of 10 to the company's financial strength rating and 8 out of 10 to its profitability rating.

On Wall Street, the stock has a median recommendation rating of overweight and an average target price of $408.03 per share.

United Rentals Inc

The second stock investors could be interested in is United Rentals Inc (

URI, Financial), a Stamford, Connecticut-based rental company that leases general and specialty equipment and products to construction and industrial companies.

United Rentals Inc has a ROE ratio of 23.82% (as of June 2021) versus the industry median of 3.67%, which ranks higher than 55% of the 273 companies that are operating in the business services industry.

The share price has increased by 109.21% over the past year to trade at $357.19 at close on Tuesday for a market capitalization of $25.86 billion and a 52-week range of $167.25 to $370.38.

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The stock has a price-earnings ratio of 25.92 and a price-book ratio of 5.08.

GuruFocus has assigned a score of 3 out of 10 to the company's financial strength rating and 8 out of 10 to its profitability rating.

On Wall Street, the stock has a median recommendation rating of overweight with an average target price of $382.50 per share.

Carlyle Group Inc

The third stock investors could be interested in is Carlyle Group Inc (

CG, Financial), a Washington D.C.-based asset management firm.

Carlyle Group Inc has a ROE ratio of 94.88% (as of June 2021) versus the industry median of 10.74%, ranking it higher than 97% of the 69 companies that are operating in the asset management industry.

The share price has risen by 123.73% over the past year to trade at $56.29 at close on Tuesday, determining a market capitalization of $20.10 billion and a 52-week range of $24.43 to $56.93.

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The stock has a price-earnings ratio of 7.77 and a price-book ratio of 4.60.

GuruFocus has assigned a score of 2 out of 10 to the company's financial strength rating and 8 out of 10 to its profitability rating.

On Wall Street, the stock has a median recommendation rating of overweight with an average target price of $61.58 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.
The views of this author are solely their own opinion and are not endorsed or guaranteed by GuruFocus.com
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