BOSTON, June 19, 2019 /PRNewswire/ -- 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.
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.
The 2019 BCG Value Creators rankings can be viewed here.
To arrange an interview with one of the authors, please contact
Eric Gregoire at +1 617 850
3783 or gregoire.eric@bcg.com.
About Boston Consulting Group
Boston Consulting Group
partners with leaders in business and society to tackle their most
important challenges and capture their greatest opportunities. BCG
was the pioneer in business strategy when it was founded in 1963.
Today, we help clients with total transformation—inspiring complex
change, enabling organizations to grow, building competitive
advantage, and driving bottom-line impact.
To succeed, organizations must blend digital and human
capabilities. Our diverse, global teams bring deep industry and
functional expertise and a range of perspectives to spark change.
BCG delivers solutions through leading-edge management consulting
along with technology and design, corporate and digital
ventures—and business purpose. We work in a uniquely collaborative
model across the firm and throughout all levels of the client
organization, generating results that allow our clients to
thrive.
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SOURCE Boston Consulting Group (BCG)