Profitability Roundup of S&P; Top Five Tech Stocks with Impressive Net Profit Margin – YHOO, ALTR, LLTC, VRSN, QCOM

  on Dec 03,2012 Posted in Finance ,Investment Ideas
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The profitability analysis of the company provides information about financial position of the company to investors. Gross margin shows the percent of every dollar spent towards providing sales that a company earns as profit. Gross margin is measured by subtracting Cost of Goods Sold from Net Sales, which is then divided by Net Sales.

The Operating margin is the proportion of revenues remaining after paying the outlays of operating the business, like labor costs, raw materials, overhead, depreciation and amortization, selling, general, and administrative outlays, advertising.

On the other hand, net profit margin shows the percent of total revenue that a corporation keeps as profit after accounting for all other expenses, variable and fixed. Net profit margin can be gauged by dividing net Income by net Sales.

In this article we will discuss technology stocks of S&P 500 components with impressive profitability. Earlier we discussed liquidity roundup of S&P 500 components.

Yahoo! Inc (NASDAQ:YHOO) offered 28.33% return on equity and has 19.02% value in Return on Assets. The Sunnyvale, California based Yahoo has the market capitalization of 22.20 billion while its P/E ratio of 5.69. Institutional ownership of the company was 73% while its 1.18 billion shares were outstanding. Net profit margin was 66.94%, highest in all tech components of S&P 500, while gross profit margin was 67.71%.

Altera Corporation (NASDAQ:ALTR) has market capitalization of 10.38 billion and offered 19.10% Return on equity. The company’s institutional ownership was 93% and its price to earnings ratio was 18.08. PEG ratio, which measures growth also, was 1.32. Net profit margin of the company was 32.34% while gross profit margin was 69.75%.

Linear Technology Corporation (NASDAQ:LLTC) has market capitalization of 7.68 billion while its Price to earnings ratio was 19.75. LLTC offered earning per share of 1.68 and its 231.39 million shares were outstanding while the 92% shares were owned by institutional investors. The company has return on equity ratio of 58.64% while ROA was 21.83%. Net profit margin was 31.05% while operating profit margin was 45.32%.

Verisign, Inc (NASDAQ:VRSN) has return on investment ratio was 37.09% while offered 14.10% as return on assets. The company has market capitalization of $5.30 billion while its EPS was 1.57. Net profit margin of the company was 30.31% and gross profit margin was 80.22%. Shares of the company were lagging behind SMA 20 with -16.36% while SMA 50 with -23.68%.

Let’s have a quick look on QUALCOMM, Inc (NASDAQ:QCOM), which has market capitalization of 108.41 billion while offered P/E ratio of 20.77. The Beta factor, which is used as a measure of a company’s volatility in relation to the market, was 0.99 while the PEG ratio of the company was 1.46. The company has ROE ratio of 17.64% while ROI value remained 15.36%. Net profit margin was 27.63% while operating profit margin was 29.28%.

 Disclosure: Opinions expressed in this article are those of the authors alone who have no stake in any stocks mentioned, and did not plan to acquire any stake within the next 72 hours.



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