The Strategist

BCG names companies with the largest shareholders income

07/13/2018 - 11:17

Consulting company BCG has presented the jubilee, twentieth issue of its Value Creators Report, in which companies are ranked based on the aggregate shareholder income for the previous five years (2013-2017). And according to this rating, the greatest profit for these years was received by those who invested in the world leaders of IT and media industry.

Those who invested in securities of the American manufacturer of graphics accelerators and computer processors Nvidia received the greatest profit among investors for the last five years. The aggregate income of its shareholders for five years was 76.1%, state the 2017 Value Creators Report compiled by the BCG report. In total, it included 2425 companies.

Initially, BCG specialists used the database of S&P Capital IQ, which collected figures of approximately 60 thousand companies from around the world. Then, the analytics selected those which shares have been traded on exchanges for the full five years. Then, those companies that traded less than 20% of the share capital on exchanges were deleted from the resulting list. In addition, the report’s authors broke the companies into 33 industries, setting for each of them a minimum threshold by the volume of market capitalization for getting into the rating.

American companies took five positions in the top 10 of the global ranking. The heist positions are also occupied by two Chinese firms, two Japanese and one company from Singapore. It turned out that companies representing the IT industry and the media market were the most profitable for shareholder. Representatives of these two spheres occupy nine of the top ten places and 13 of the top 20. At the same time, Nvidia, Netflix, Broadcom and Tencent Holdings are among the top five in terms of shareholders’ income for the second consecutive year. And Facebook, which took fifth place, appeared in the ranking for the first time. However, according to the average profitability of shareholders, the pharmaceutical industry is ranked first (24.2%). Next comes the automotive components industry (21.8%), and the third line is shared by IT and media companies with an average aggregate shareholder income of 21.5%.