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3 Stocks With High Returns on Equity

These businesses have been very efficient in generating profits

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Jan 07, 2022
Summary
  • Ball Corp, Rogers Communications Inc. and Ares Management Corp have higher return 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.

Ball Corp

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

BLL, Financial), a Broomfield, Colorado-based supplier of aluminum packaging products to several industries including beverage, personal care and household products in North America and internationally.

Ball Corp. has a ROE ratio of 19.50% (as of Sept. 2021) versus the industry median of 8.96%, ranking higher than 91% of 349 companies that are operating in the packaging and containers industry.

The share price was $91.56 at close on Thursday, up less than 1% compared to year-ago levels for a market capitalization of $29.72 billion and a 52-week range of $77.95 to $98.09.

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The stock has a price-earnings ratio of 37.77 and a price-book ratio of 8.04.

GuruFocus has assigned a score of 4 out of 10 to the company's financial strength rating and 7 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 $102 per share.

Rogers Communications Inc.

The second stock investors could be interested in is Rogers Communications Inc. (

RCI, Financial), a Canadian telecommunication services company.

Rogers Communications has a ROE ratio of 18.67% (as of Sept. 2021) versus the industry median of 7.53%, which ranks higher than 70% of the 369 companies that are operating in the telecommunication services industry.

The share price has increased by 1.19% over the past year to trade at $48.12 at close on Thursday for a market capitalization of $24.47 billion and a 52-week range of $43.18 to $53.59.

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The stock has a price-earnings ratio of 19.65 and a price-book ratio of 2.96.

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 $55.43 per share.

Ares Management Corp

The third stock investors could be interested in is Ares Management Corp. (

ARES, Financial), a Los Angeles, California-based asset management firm focusing on various types of investment funds and on providing financing solutions to small-to-medium-sized companies. The company also focuses on majority or co-control investments, primarily in undercapitalized companies and commercial real estate.

Ares Management Corp. has a ROE ratio of 19.67% (as of Sept. 2021) versus the industry median of 15.54%, ranking it higher than 68% of the 1,680 companies that are operating in the asset management industry.

The share price has risen by 58.86% over the past year to trade at $73.94 at close on Thursday, determining a market capitalization of $12.94 billion and a 52-week range of $44.43 to $90.08.

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The stock has a price-earnings ratio of 38.58 and a price-book ratio of 7.36.

GuruFocus has assigned a score of 3 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 buy with an average target price of $96 per share.

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Disclosures

I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours. Click for the complete disclosure
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