Seven Basic Materials Stocks in NYSE with Best ROE Ratio

  on Aug 13,2012 Posted in Featured ,Finance ,Investment Ideas ,Premium
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Return on equity calculates the rate of return on the money invested by common stock owners and retained by the corporation thanks to earlier profitable years. The ration shows a corporation’s ability to make profits from shareholders’ equity.

In other words, Return on equity demonstrates how well a corporation uses investment funds to make growth. ROE is useful for comparing the profitability of corporations within a sector or industry.

Usually, Investors are interested in corporations that have high, raising returns on equity. ROE is also known as return on net worth or RONW. Also, we earlier discussed Best Five S&P Stocks with best ROE.

Return on equity is useful for comparing the profitability of a corporation with that of other companies in the same industry. Investors look at this ratio for valuation purposes. In this article we will discuss high ROE ratio companies of basic material sector in NYSE stock exchange with market volume over 2 million.

Pioneer Southwest Energy Partners LP (NYSE:PSE) offered 81.98% return on equity and get the first mark in this sector while the corporation has 47.62% value in Return on Assets. The company has the market capitalization of 956.77 million while its P/E ratio of 5.60. Institutional ownership of the company was 19% while its 35.71 million shares were outstanding.

Companhia Siderurgica Nacional (ADR) (NYSE:SID) has market capitalization of 7.86 billion and offered 50.55% Return on equity. The company’s institutional ownership was 10% while its price to earnings ratio was 18.40. PEG ratio, which measures growth also, was 1.26. Company’s net profit margin was 26.99% while gross profit margin was 44.44%. Beta factor was 1.84.

BHP Billiton Limited (ADR) (NYSE:BHP) has return on equity ratio of 38.59% while its return on investment ratio was 25.39%. The company offered 20.97% as return on assets. BHP Billiton has market capitalization of $112.26 billion while its EPS was 8.49.

SandRidge Energy Inc (NYSE:SD) has market capitalization of 3.35 billion while its Price to earnings ratio was 6.71. SandRidge Energy offered EPS of 1.02 while its 491.08 million shares were outstanding. The 59% shares of the company were owned by institutional investors. The company has return on equity ratio of 35.09 while ROA was 12.82%.

Other two companies AngloGold Ashanti Limited (ADR) (NYSE:AU) and E I Du Pont De Nemours And Co (NYSE:DD) have return on equity ratio 33.08% and 31.53% respectively. Both companies have strong ROE ratio as compares to industry.

As a final point, Potash Corp/ Saskatchewan (USA) (NYSE:POT) has market capitalization of 37.33 billion while offered P/E ratio of 15.09. The Beta factor, which is used as a measure of a company’s volatility in relation to the market, was 1.07 while the PEG ratio of the company was 1.20. The company has ROE ratio of 30.32% while ROA value remained 15.27%.

In conclusion we can say that if we use check of market volume over 2 million in NYSE basic materials companies so these seven are the top profitable companies.




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