Recently we discussed the world’s 10 most admired companies, as surveyed by CNN Money. Unfortunately, the survey was slightly biased towards US-based companies. After observing that the article drew quite a bit interest, we decided that it would be of interest to write a followup article about the top international companies, according to Brandirectory’s top brands list; here are the top companies with our thoughts on their market-beating potential.
Vodafone Group Plc (VOD) is a renowned, global telecommunications company with a market capitalization of $153.3 billion and a P/E ratio of 8.3, while forward P/E is 10.01. VOD had a negative EPS growth during the last five years, but this year earnings increased by 181.50%. Net profit margin in 2010 was 25.01%, while the company offered a dividend yield of 4.55% over the same period. Vodafone has great exposure to emerging markets, and we expect that exposure to benefit Vodafone’s profitability in long run.
HSBC Holdings Plc (HBC) has over 10,000 properties in 83 countries, providing service to more than 128 million customers as a banking and financial services organization. The market cap for HBC is $191.08 billion and P/E ratio is 14.9. The forward P/E ratio is 10.7. HSBC had a negative EPS growth during the last five years, but this year earnings increased by 113.28%. Net profit margin in 2010 was 19.04% and last year’s dividend was 4.44%. HSBC is also increasing its presence in emerging markets through local alliances.
Toyota Motor Corp. (TM), the Japan-based company, designs, manufactures and sells compact cars, sedans, minivans, sport-utility vehicles and related parts, mostly in North America, Europe and Asia. Toyota has a market cap of $119.94 billion and a P/E ratio of 20.5, while forward P/E ratio is 28.54. Although TM had an annualized EPS growth of -28.41% over the last five years, this year earnings increased by 148.01%. Net profit margin in 2010 was 2.5% and dividend yield was 1.3%. Contemporary news has been against Toyota, driving the stock down by almost 20%. Once the buyers outweigh sellers, Toyota stock might test $200 levels again.
Banco Santander, S.A. (STD), the largest bank of Spain (formerly known as Banco Santander Central Hispano SA), provides a variety of financial products and services primarily in Spain, Portugal, the UK, Latin America and the US. The market cap of STD is $104.5 billion and its P/E ratio is 9.10, while forward P/E ratio is 8.31. Banco Santander had a negative EPS growth during the last five years, but the company is expected to have an EPS growth of 12.40% over the next five years. With a net profit margin of 22.28% and a dividend yield of 8.1%, STD is quite a nice stock for dividend lovers.
China Mobile Limited (CHL): Dominating the mobile market of China, CHL serves more than 500 million customers. China Mobile owns over 70% market share in Mainland China. The market capital of CHL is $187.95 billion and the P/E ratio is 10.5, while the forward P/E ratio is 13.01. The company had an EPS growth of 19.93% over the last five years. With a net profit margin of 25.1 % and a dividend yield of 4.13%, China Mobile is a very profitable company. CHL is a great stock for investors willing to invest in China. Assuming that the numbers are correct, it is one of the safest Chinese stocks on the market.
Banco Bradesco, S.A: (BBD), a provider of banking and financial products and services, has more than 3,500 branches and 30,000 ATMs in Brazil. The market capital of BBD is $78.98 billion and the P/E ratio is 13.9, while the forward P/E ratio is 10.5. Banco Bradesco had an EPS growth of 19.65% over the last five years. Last year’s dividend was 0.49% and the company had a net profit margin of 25.9%. Banks will be catalysts of growth in Brazil. BBD is a highly profitable company that can outperform its American counterparts in the long run.
Barclays Plc (BCS): Providing financial services in the US, Europe, Africa and Asia, Barclays Plc offers retail and commercial banking, investment banking, wealth management services and credit cards. Barclays has a market cap of $59.9 billion and a P/E ratio of 10.63, while the forward P/E ratio is 8.29. The company is expected to have an EPS growth of 32.10% in the next five years. With a net profit margin of 13.8%, Barclays offered a 1.73% dividend yield.
Siemens AG (SI): The Munich-based electronics and electrical engineering company provides service in the energy, industry and healthcare sectors over the world. The company also offers insurance solutions and financial products& services. The market capital of Siemens is $119.92 billion and the P/E ratio is 19.9, while the forward P/E ratio is 13.5. The company had an EPS growth of 11.54% over the last five years. Siemens’ net profit margin was 5.3% and last year’s dividend was 2.68%. Siemens is a truly global company with many manufacturing centers around the world.
Honda Motor Co., Ltd. (HMC): As one of the leading companies in the business of developing, manufacturing and distributing automobiles, motorcycles and power products, Tokyo-based Honda also products a variety of automobile products like minivans, multi-wagons, mini cars and passenger cars. The market capital of Honda is $61.6 billion and the P/E ratio is 9.3, while the forward P/E ratio is 9.15. Although HMC had a negative EPS growth during the last five years, analysts expect the company to have an EPS growth of 14.90% over the next five years. Last year’s dividend was 1.45%, and the company had a net profit margin of 6.2%. Honda stock is also beaten down by recent news in Japan. However, given the demand for reliable cars, we expect the stock to recover in the near future.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.