Shares of Advantest Corporation (ATEYY, Financial), Sapiens International Corporation NV (SPNS, Financial) and MSCI Inc. (MSCI, Financial) performed strongly over the past several years, topping the overall U.S. stock market in the observed periods.
The S&P 500 index, which is the benchmark for the U.S. market, rose 27.3% in the past 52 weeks, 42.7% in the past three years and 60.8% in the past five years through Monday, Jan. 6.
These stocks have received high scores from GuruFocus for their profitability, which is an indicator for both past and future ability to generate income.
Wall Street supports has also issued positive recommendation ratings of hold to overweight for these companies.
Advantest Corporation
Shares of Advantest Corporation have risen 163.6% over the last 52 weeks, 233.7% over the past three years and 383.4% over the past five years through Jan. 6, outperforming the S&P 500 by 136.3%, 191% and 322.6%, respectively.
The Japanese manufacturer and marketer of semiconductors and other component test system products has paid semi-annual dividends over the observed periods. The last semi-annual cash dividend of 37.5 cents per common share was paid on Dec. 9, 2019. Based on a $55.40 share price at close on Monday, the payment produces a 1.33% forward dividend yield and a 1.38% trailing 12-month dividend yield.
GuruFocus assigned a rating of 9 out of 10 for the company's financial strength and 7 out of 10 for its profitability.
Advantest stands out among its competitors with an operating margin of 23.05% versus the industry median of 5.42%, with a net margin of 19.38% versus the industry median of 3.61% and with a return on equity of 27.36% compared to the industry median of 4.73%.
The stock has a market capitalization of $10.96 billion, a price-earnings ratio of 22.44, a price-sales ratio of 4.34 and a price-book ratio of 5.6. These ratios, along with the below Peter Lynch chart, suggest the stock is not cheap.
Wall Street sell-side analysts issued an overweight recommendation rating with an average target share price of $53.25.
Sapiens International Corporation NV
Shares of Sapiens International Corporation NV have risen 95.7% over the last 52 weeks, 56.4% over the past three years and 243.4% over the past five years through Jan. 6, outperforming the S&P 500 by 68.4%, 13.7% and 182.6%, respectively.
The Israeli provider of software solutions to North American, European, South African and Asian insurance and financial services companies has paid annual dividends over the observed periods. Currently, the annual cash dividend is 22 cents per common share, which produces a 0.95% yield for both the forward dividend and the trailing 12-month dividend based on the $23.25 share price at close on Jan. 6. The most recent annual dividend was paid on Sept. 3, 2019.
GuruFocus assigned a positive rating of 6 out of 10 for the company's financial strength and a high rating of 8 out of 10 for its profitability.
Sapiens attracts the attention of investors in the software industry as its operating margin of 8.53% tops the industry median of 4.47%, its net margin of 5.4% tops the industry median of 2.54% and its return on equity of 7.91% surpasses the industry median of 5.39%.
The stock has a market capitalization of $1.16 billion, a price-earnings ratio of 39.41, a price-sales ratio of 3.76 and a price-book ratio of 5.41. These ratios together with the below Peter Lynch chart suggest that this stock is not cheap.
Sell-side analysts issued a hold recommendation rating with an average target share price of $20.19.
MSCI
Shares of MSCI Inc. have risen 74.3% over the last 52 weeks, 214.2% over the past three years and 384.7% over the past five years through Jan. 6, outperforming the S&P 500 by 47%, 171.5% and 324%, respectively.
The New York City-based provider of equity, fixed income, hedge fund stock market indexes and multi-asset portfolio investment decision support tools has paid quarterly dividends over the periods in question. MSCI paid the last quarterly cash dividend of 68 cents per common share on Nov. 27, 2019, generating a 1.04% forward dividend yield and a 0.96% trailing 12-month dividend yield based on the share price of $262.05 at close on Monday.
GuruFocus assigned a moderate rating of 4 out of 10 for the company's financial strength and the maximum score of 10 out of 10 for its profitability rank.
Regarding its profitability, MSCI has a net margin of 39.2%, which surpasses the industry median of 10.64%, and a return on total assets of 17.05%, which surpasses the industry median of 1.1%.
The stock has a market capitalization of $22.2 billion, a price-earnings ratio of 38.26 and a price-sales ratio of 14.72. In addition to these ratios, the below Peter Lynch chart also indicates that shares are not cheap.
Sell-side analysts issued an overweight recommendation rating with an average target share price of $264.00.
Disclosure: I have no positions in any securities mentioned.
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