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The following is a list of the most effective management teams in the tech sector, as defined by the return on assets, return on equity and return on invested capital ratios.

To develop the list, we only focused on management teams that have outperformed their industries on all three ratios over the past 5 years.

If you're looking for a starting point, this list of top management teams might be an interesting source for ideas.

Management data and industry comps sourced from Reuters. Full analysis below.



1. Dolby Laboratories Inc. (NYSE:DLB): Diversified Electronics Industry. Market cap of $7.43B. 5-year average return on assets at 16.62% vs. industry average at 1.99%. 5-year average return on investments at 19.35% vs. industry average at 2.45%. 5-year return on equity at 20.18% vs. industry average at 3.39%. Short float at 7.23%, which implies a short ratio of 5.84 days. The stock has gained 46.73% over the last year.

2. FactSet Research Systems Inc. (NYSE:FDS):
Information & Delivery Services Industry. Market cap of $4.35B. 5-year average return on assets at 22.71% vs. industry average at 3.51%. 5-year average return on investments at 27.23% vs. industry average at 5.23%. 5-year return on equity at 28.91% vs. industry average at 4.45%. Short float at 7.31%, which implies a short ratio of 10.51 days. The stock has gained 28.69% over the last year.

3. Morningstar Inc. (NASDAQ:MORN): Information & Delivery Services Industry. Market cap of $2.55B. 5-year average return on assets at 11.69% vs. industry average at 3.51%. 5-year average return on investments at 17.32% vs. industry average at 5.23%. 5-year return on equity at 18.87% vs. industry average at 4.45%. Short float at 6.61%, which implies a short ratio of 19.12 days. The stock has gained 5.2% over the last year.

4. First Solar, Inc. (NASDAQ:FSLR): Semiconductor Industry. Market cap of $11.49B. 5-year average return on assets at 19.52% vs. industry average at 3.75%. 5-year average return on investments at 22.83% vs. industry average at 5.27%. 5-year return on equity at 25.72% vs. industry average at 8.83%. Short float at 24.67%, which implies a short ratio of 7.59 days. The stock has gained 3.42% over the last year.

5. Corning Inc. (NYSE:GLW): Communication Equipment Industry. Market cap of $29.21B. 5-year average return on assets at 13.87% vs. industry average at 4.54%. 5-year average return on investments at 16.41% vs. industry average at 6.26%. 5-year return on equity at 26.19% vs. industry average at 4.75%. Short float at 1.52%, which implies a short ratio of 1.87 days. The stock has gained 3.15% over the last year.

6. MEMC Electronic Materials Inc. (WFR): Semiconductor Industry. Market cap of $2.72B. 5-year average return on assets at 16.24% vs. industry average at 3.75%. 5-year average return on investments at 19.78% vs. industry average at 5.27%. 5-year return on equity at 24.16% vs. industry average at 8.83%. Short float at 5.9%, which implies a short ratio of 2.15 days. The stock has lost -6.27% over the last year.

7. Amphenol Corporation (NYSE:APH): Diversified Electronics Industry. Market cap of $9.26B. 5-year average return on assets at 13.12% vs. industry average at 4.54%. 5-year average return on investments at 16.31% vs. industry average at 6.26%. 5-year return on equity at 29.17% vs. industry average at 4.75%. Short float at 2.03%, which implies a short ratio of 3.51 days. The stock has gained 19.4% over the last year.

8. Acuity Brands, Inc. (NYSE:AYI): Diversified Electronics Industry. Market cap of $2.51B. 5-year average return on assets at 7.20% vs. industry average at 2.41%. 5-year average return on investments at 10.47% vs. industry average at 3.37%. 5-year return on equity at 16.92% vs. industry average at 5.46%. Short float at 11.1%, which implies a short ratio of 11.62 days. The stock has gained 76.93% over the last year.

9. Waters Corp. (NYSE:WAT): Scientific & Technical Instruments Industry. Market cap of $7.16B. 5-year average return on assets at 16.25% vs. industry average at 5.71%. 5-year average return on investments at 24.10% vs. industry average at 8.05%. 5-year return on equity at 50.36% vs. industry average at 12.83%. Short float at 2.27%, which implies a short ratio of 2.98 days. The stock has gained 31.9% over the last year.

10. Lam Research Corporation (NASDAQ:LRCX): Semiconductor Equipment & Materials Industry. Market cap of $6.09B. 5-year average return on assets at 13.44% vs. industry average at 4.47%. 5-year average return on investments at 17.78% vs. industry average at 6.0%. 5-year return on equity at 20.80% vs. industry average at 6.75%. Short float at 3.68%, which implies a short ratio of 1.89 days. The stock has gained 29.55% over the last year.

11. Varian Semiconductor Equipment Associates Inc. (NASDAQ:VSEA): Semiconductor Equipment & Materials Industry. Market cap of $2.61B. 5-year average return on assets at 11.47% vs. industry average at 4.47%. 5-year average return on investments at 13.83% vs. industry average at 6.0%. 5-year return on equity at 15.09% vs. industry average at 6.75%. Short float at 3.06%, which implies a short ratio of 3.53 days. The stock has gained 6.6% over the last year.

12. Cisco Systems, Inc. (NASDAQ:CSCO):
Networking & Communication Devices Industry. Market cap of $107.68B. 5-year average return on assets at 12.41% vs. industry average at 5.35%. 5-year average return on investments at 16.27% vs. industry average at 8.03%. 5-year return on equity at 21.51% vs. industry average at 9.15%. Short float at 0.71%, which implies a short ratio of 0.56 days. The stock has lost -19.59% over the last year.

13. Apple Inc. (NASDAQ:AAPL): Personal Computers Industry. Market cap of $293.68B. 5-year average return on assets at 19.96% vs. industry average at 7.50%. 5-year average return on investments at 28.48% vs. industry average at 15.20%. 5-year return on equity at 31.92% vs. industry average at 16.66%. Short float at 0.99%, which implies a short ratio of 0.48 days. The stock has gained 65.61% over the last year.

14. Windstream Corporation (NASDAQ:WIN): Telecom Services Industry. Market cap of $6.58B. 5-year average return on assets at 7.21% vs. industry average at 4.15%. 5-year average return on investments at 7.84% vs. industry average at 5.85%. 5-year return on equity at 49.41% vs. industry average at 8.61%. Short float at 3.87%, which implies a short ratio of 3.83 days. The stock has gained 39.73% over the last year.

15. Western Digital Corp. (NASDAQ:WDC): Data Storage Devices Industry. Market cap of $7.92B. 5-year average return on assets at 18.75% vs. industry average at 7.50%. 5-year average return on investments at 28.08% vs. industry average at 15.20%. 5-year return on equity at 32.08% vs. industry average at 16.66%. Short float at 4.04%, which implies a short ratio of 1.72 days. The stock has lost -12.74% over the last year.

16. Applied Materials, Inc. (NASDAQ:AMAT): Semiconductor Equipment & Materials Industry. Market cap of $17.39B. 5-year average return on assets at 9.30% vs. industry average at 4.47%. 5-year average return on investments at 12.11% vs. industry average at 6.0%. 5-year return on equity at 12.91% vs. industry average at 6.75%. Short float at 1.74%, which implies a short ratio of 1.32 days. The stock has lost -0.08% over the last year.

17. Dell Inc. (NASDAQ:DELL): Personal Computers Industry. Market cap of $26.64B. 5-year average return on assets at 9.93% vs. industry average at 7.50%. 5-year average return on investments at 27.47% vs. industry average at 15.20%. 5-year return on equity at 57.59% vs. industry average at 16.66%. Short float at 2.42%, which implies a short ratio of 1.74 days. The stock has gained 1.78% over the last year.

18. Agilent Technologies Inc. (NYSE:A):
Scientific & Technical Instruments Industry. Market cap of $12.85B. 5-year average return on assets at 6.52% vs. industry average at 4.54%. 5-year average return on investments at 8.32% vs. industry average at 6.26%. 5-year return on equity at 21.58% vs. industry average at 4.75%. Short float at 1.26%, which implies a short ratio of 1.37 days. The stock has gained 24.35% over the last year.

19. QUALCOMM Incorporated (NASDAQ:QCOM): Communication Equipment Industry. Market cap of $78.17B. 5-year average return on assets at 12.82% vs. industry average at 5.35%. 5-year average return on investments at 14.47% vs. industry average at 8.03%. 5-year return on equity at 16.50% vs. industry average at 9.15%. Short float at 1.96%, which implies a short ratio of 1.84 days. The stock has gained 9.03% over the last year.

20. Harris Corp. (NYSE:HRS): Communication Equipment Industry. Market cap of $5.83B. 5-year average return on assets at 9.45% vs. industry average at 5.35%. 5-year average return on investments at 13.37% vs. industry average at 8.03%. 5-year return on equity at 19.96% vs. industry average at 9.15%. Short float at 5.32%, which implies a short ratio of 7.48 days. The stock has gained 1.5% over the last year.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.