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4 Large-Cap Stocks With High Returns on Equity

These businesses have been very efficient in generating profits

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Nov 28, 2021
Summary
  • Zoetis Inc, DexCom Inc, Zebra Technologies Corp and CNH Industrial N.V. have higher returns on equity ratios than most of their peers.
  • Wall Street also 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.

Zoetis Inc

The first stock investors could be interested in is Zoetis Inc (

ZTS, Financial), a Parsippany, New Jersey-based developer, manufacturer and marketer of animal health medicines and diagnostic products.

Zoetis has a ROE ratio of 48.91% (as of Sept. 2021) versus the industry median of -15.50%, ranking higher than 73% of 151 companies that are operating in the drug manufacturers industry.

The share price was $219.32 at close on Friday, having increased 36.75% over the past year for a market capitalization of $103.77 billion and a 52-week range of $141.41 to $228.89.

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The stock has a price-earnings ratio of 52.85 and a price-book ratio of 22.19.

GuruFocus has assigned a score of 5 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 overweight and an average target price of $240.55 per share.

DexCom Inc

The second stock investors could be interested in is DexCom Inc (

DXCM, Financial), a San Diego, California-based medical device company that provides U.S. and international healthcare organizations with glucose monitoring systems.

DexCom has a ROE ratio of 13.72% (as of Sept. 2021) versus the industry median of 3.96%, which ranks higher than 67% of the 238 companies that are operating in the medical devices and instruments industry.

The share price has increased by 85.17% over the past year to trade at $591.96 at close on Friday for a market capitalization of $57.37 billion and a 52-week range of $312.01 to $659.45.

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The stock has a price-earnings ratio of 110.03 and a price-book ratio of 26.85.

GuruFocus has assigned a score of 6 out of 10 to the company's financial strength rating and 3 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 $638.88 per share.

Zebra Technologies Corp

The third stock investors could be interested in is Zebra Technologies Corp (

ZBRA, Financial), a Lincolnshire, Illinois-based global manufacturer and seller of automatic identification and data capture products.

Zebra Technologies has a ROE ratio of 29.45% (as of Sept. 2021) versus the industry median of 3.62%, ranking it higher than 76% of the 454 companies that are operating in the hardware industry.

The share price has risen by 56.10% over the past year to trade at $590.72 at close on Friday, determining a market capitalization of $31.57 billion and a 52-week range of $363 to $614.09.

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The stock has a price-earnings ratio of 37.67 and a price-book ratio of 11.21.

GuruFocus has assigned a score of 6 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 $632 per share.

CNH Industrial N.V.

The third stock investors could be interested in is CNH Industrial N.V. (

CNHI, Financial), a U.K.-based producer and seller of farm and construction equipment and vehicles.

CNH Industrial has a ROE ratio of 21.25% (as of Sept. 2021) versus the industry median of 13.04%, ranking it higher than 73% of the 33 companies that are operating in the farm and heavy construction machinery industry.

The share price has risen by 55.70% over the past year to trade at $16.94 at close on Friday, determining a market capitalization of $22.94 billion and a 52-week range of $10.79 to $19.22.

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The stock has a price-earnings ratio of 14.48 and a price-book ratio of 3.68.

GuruFocus has assigned a score of 4 out of 10 to the company's financial strength rating and 6 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 $21.32 per share.

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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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