• Skip to main content
  • Skip to secondary menu
  • Skip to primary sidebar
  • Skip to secondary sidebar
  • Skip to footer

Analysis.org

Intelligence Analysis in Market Context

  • Sponsored Post
    • Make a Contribution
  • Market Research Reports
    • Technology Analysis
    • Events
    • Venture Capital Analysis
  • Domain Analysis
  • About
  • Contact

US Companies Lead in Value Creation, but Asian Companies Are Catching Up

June 19, 2019 By Analysis.org

US companies continue to lead the way among the world’s large-cap value creators, taking 7 of the top 10 spots and 11 of the top 20 for global large-cap companies in the 2019 Value Creators rankings released today by Boston Consulting Group (BCG). This is the 21st annual edition of the rankings, which shed light on patterns and characteristics of the world’s top value creators.

Although US Firms Take Seven of the Top Slots in BCG’s 2019 Large-Cap Value Creators Ranking, Asian Firms Dominate the Broader Rankings

Only 2 of the top 10 large-cap value creators and 5 of the top 20 are based in Asia, reflecting the disproportionate number of North American companies that rank among the largest companies by market capitalization. But a look at performance beyond the top 20 large-cap value creators reveals a much different picture. Among the top 100 performers, 28% are North American and 55% are Asian. Similarly, among the 330 companies that rank in the top 10 in their industry, 29% are North American and 45% are Asian.

“Asian companies are catching up to, and in some cases surpassing, their longer-established US counterparts in value creation,” said Alexander Roos, a BCG senior partner. “We expect that our annual rankings will provide important insights into this trend in the coming years.”

Since 1999, BCG has published annual rankings of the world’s top value-creating companies, measured on the basis of total shareholder return (TSR) over the previous five-year period. To compile the 2019 rankings, BCG analyzed TSR at approximately 2,250 companies globally (slightly more than one-third of them US-based companies) from 2014 through 2018. In addition to providing our large-cap ranking of five-year TSR at the world’s 200 largest companies by market valuation, the 2019 Value Creators rankings offer rankings of the top 10 value creators in each of 33 industry sectors.

TSR measures the combination of share price gains and dividend yield for a company’s stock over a given period. It is the most comprehensive metric of performance in shareholder value creation. Average annual TSR is the amount of TSR that a company delivered, on average, over the five years covered in BCG’s 2019 analysis.

Key findings:
From 2014 through 2018, the top 10 value creators delivered an average five-year TSR of 35%, spanning a range from 27% to 54%.

The median five-year TSR for the more than 2,200 companies in the database was 8.2%, which is in line with long-term global capital market returns. In contrast, the median TSR for last year’s sample, covering 2013 through 2017, was 15.6%, reflecting the strong bull market throughout that five-year period.

Technology and media are once again the primary value-driving sectors on the large-cap leader board, but this year’s list is somewhat more diverse. Tech and media companies hold down 6 spots in the large-cap top 10 and 8 spots in the large-cap top 20 this year—down from 9 spots and 13 spots, respectively, in last year’s ranking. Medical technology and health care services companies occupy 4 of the top 20 spots, up from 3 last year.

Among the 33 industries tracked, health care services leads the charge with a median annual TSR of 17%—more than twice the median for all companies in the database. Medtech finishes a close second, with a median annual TSR of 16%, followed by financial infrastructure providers (at 15%) and technology (at 14%). Technology and medtech were top-performing industries in last year’s rankings as well, coming in third and fifth, respectively, among the 33 industries. In contrast, health care services finished at number 13 in the 2018 rankings.

In the list of the world’s 200 most valuable companies, for the third year in a row, Nvidia, Broadcom, and Netflix hold three of the top five positions. Adobe Systems joins the top five, while Tencent drops to eighth place. Facebook plunges from number 5 last year to number 33 this year—no surprise given the company’s steep decline in value during the market correction that occurred in the fourth quarter of 2018. Kweichow Moutai, a Chinese consumer nondurables company, vaults from tenth place last year to second place this year.

Among the more than 2,000 companies in BCG’s database that were publicly listed during each of the ten years from 2009 through 2018, only four (approximately 0.2%) outperformed their respective local market index every year. Looking at a broader set of more than 5,700 companies that have more than $1 billion in market capitalization, the study found that a similar percentage (approximately 0.3%) achieved this feat each year over the period.

“Many companies ride a wave of success in specific market cycles, but it is extremely rare, and an even greater accomplishment, for a company to deliver strong performance year after year,” said Eric Wick, a BCG senior partner.

The 2019 BCG Value Creators ranking is presented in an online interactive format that allows users to see the TSR performance of the top 50 large-cap companies and other value creators across 33 industries, as well as to review the individual drivers behind each company’s TSR performance.

SOURCE Boston Consulting Group (BCG)
www.bcg.com

Filed Under: Briefing

Primary Sidebar

Market Research Media

Streaming video, training, and gaming coming together to form a cohesive and diverse media and entertainment ecosystem
Turn Your Story into a Game: The Art of Gamifying Your Plot
The end of cheap money is redrawing the map of corporate earnings
The Future of Virtual Reality: How VR is Changing Industries
Market Research Media Survey: The State of Streaming Services
Media measurement services provide a holistic view of cross-media consumption
Gen Z ranks top in luxury sales

Market Analysis

Digital Museums: Elevating Your Collection and Engaging Visitors
With the world’s largest reserves of nickel and a ban on the export of nickel ore, Indonesia is positioning itself as a critical player in the EV industry
The US curbs on China’s semiconductor industry have a significant impact on the Asian semiconductor manufacturing landscape
The Immersive Experience in the Museum World
How insurers thrive in a turbulent market
Leveraging Artificial Intelligence to Drive Cost Savings and Productivity in Uncertain Times
The shipping industry is undergoing a significant change with the influx of new vessels arriving just as the growth of trade is beginning to slow down

Secondary Sidebar

Venture Capital

Gradient, a company specializing in eco-friendly heating and cooling solutions, has raised $18 million in a Series A funding round
The Importance of Diversity and Inclusion in the Workplace
Sequoia Capital announces its $195 Mln dedicated seed fund
Sublime Systems Secures $40 Million Series A to Electrify and Scale Decarbonized Cement Production
actyv.ai Raises Pre-Series A Funding to Fuel Global Expansion, Product Enhancement

Technologies

Nel Hydrogen Electrolyser has received a purchase order €12 million for 40 MW of alkaline electrolyser
The use of immersive technology in museums is still in its early stages
The low tech unemployment rate and hiring activity confirms the long-term demand for tech talent
Virgin Orbit and SatRev Sign Launch Services Agreement
Harnessing the Power of Innovation for a Better Tomorrow

Footer

Recent Posts

  • Balancing Sustainability and Technology: A Shift in Business Priorities
  • The Impact of COVID-19 on Public Social Spending: Rise and Fall of Public Social Spending
  • What is happening in Japan’s bond market?
  • Why private credit has become a magnet for finance executives
  • Why nearly one-third of Americans rely on tax refunds
  • China’s rapid reopening from COVID-19 has brought both joy and woe for world markets
  • Growing Green-Market Demand Provides Opportunities for Early-Movers to Commercialize Sustainability
  • Is the world economy in permacrisis?
  • What are signs of a global economic downturn?
  • Why digital transformation in the healthcare sector is a challenge

Media Partners

  • Exclusive Domains
  • Press Media Release
  • Briefly
  • OPINT
  • VPNW
  • S3H
  • Domain Aftermarkets
  • App Coding
  • API Coding
  • Blockchaining

Media Partners

  • Technology Conferences
  • Event Sharing Network
  • Defense Conferences
  • Cybersecurity Events
  • Event Calendar
  • Calendarial
  • Domain Market Research
  • 3V

Copyright © 2017 Analysis.org

Technologies, Market Analysis & Market Research Reports

We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
Do not sell my personal information.
Cookie SettingsAccept
Manage consent

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
CookieDurationDescription
cookielawinfo-checkbox-analytics11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checkbox-functional11 monthsThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checkbox-necessary11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-others11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-performance11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy11 monthsThe cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytics
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Advertisement
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
Others
Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
SAVE & ACCEPT