I was browsing The Motley Fool and came upon its latest featured list of the best 25 companies in America.
It is definitely worth checking out because the way they ranked the companies is different to any other list. Instead of just focusing on earnings growth, stock price increase or ROE like most lists, The Motley Fool truly tried to find the “best” companies.
For the past several months, we have been compiling data and analyzing more than 1,700 public companies to discover the 25 best public companies in America, measured by their success in serving investors, customers, employees, and the world at large.
The Fool’s Ranking System
Each company is weighted by four elements:
- Investor (28.3% weighting) – return on capital, earnings growth, 5 year history
- Customer (28.3% weighting) – customer satisfaction
- Employee (28.3% weighting) – employee happiness
- World (15% weighting) – positive impact and work in the world
The concept of customer, employee and world is quite intriguing. I wrote about how customer service is an underrated moat and it seems like The Fool’s took this concept and ran with it.
I bet these are the types of companies that Buffett would love to buy at the right price. The following companies not only have strong returns, but moats that cause customers and employees to rave about the service or products.
The Top 10 Best Companies In America
This is how I find ideas throughout the year; by going through best stock lists and running it through the stock analysis spreadsheet to see whether it is worth digging into.
Since the The Motley Fool did a great job on the qualitative research, I’ll add some quantitative numbers to balance the analysis as well as the link to each qualitative commentary. This should provide for an interesting weekend of reading.
#1 Cummins (CMI)
- Investor – 8.5
- Customer – 9.6
- Employee – 8.3
- World – 10
- Fool’s qualitative research commentary
#2 Teradata (TDC)
- Investor – 9.3
- Customer – 6.8
- Employee – 8.9
- World – 8
- Fool’s qualitative research commentary
#3 Colgate-Palmolive (CL)
- Investor – 8.9
- Customer – 7.4
- Employee – 9.1
- World – 7
- Fool’s qualitative research commentary
#4 Google (GOOG)
- Investor — 8.5
- Customer — 6
- Employee – 9.5
- World — 9
- Fool’s qualitative research commentary
#5 Skyworks (SWKS)
- Investor — 7.1
- Customer — 8.9
- Employee — 8.5
- World — 7
- Fool’s qualitative research commentary
#6 Biogen Idec (BIIB)
- Investor — 8.6
- Customer — 5.2
- Employee –9.2
- World — 9
- Fool’s qualitative research commentary
#7 Akamai (AKAM)
- Investor — 7.1
- Customer — 7.5
- Employee — 9.1
- World — 7
- Fool’s qualitative research commentary
#8 Lincoln Electric (LECO)
- Investor — 7.2
- Customer — 8.0
- Employee — 8.8
- World — 6
- Fool’s qualitative research commentary
#9 Costco (COST)
- Investor — 7
- Customer — 8
- Employee — 8.9
- World — 6
- Fool’s qualitative research commentary
#10 Under Armour (UA)
- Investor — 9.5
- Customer — 8.8
- Employee — 6.1
- World — 5
- Fool’s qualitative research commentary
Disclosure
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