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One important consideration for stocks is the corporate governance policies of the company, such as its board composition and shareholder rights, which have important implications to the company’s performance.

RiskMetrics Group gives ratings for four areas of corporate governance, on risks related to: the board, the audit committee, the compensation committee, and shareholder rights.

We ran a screen on large-cap stocks with high growth in profitability, comparing trailing-twelve-month EBITDA/common equity (EBITDA stands for earnings before interest, taxes, depreciation, and amortization) to the five-year average. We also controlled for low interest payments by screening for companies with increasing interest coverage over the last two years. Finally, we screened for companies that received “low risk” ratings from RiskMetrics on all four corporate governance areas.

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the top six stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.


We also created a price-weighted index of the stocks mentioned below, and monitored the performance of the list relative to the S&P 500 index over the last month. To access a complete analysis of this list's recent performance, click here.



Do you think these companies are being run well? Use this list as a starting-off point for your own analysis.

List sorted by market cap.

1. International Business Machines Corp. (IBM): Diversified Computer Systems Industry. Market cap of $194.12B. TTM EBITDA/common equity at 1.09 vs. 5-year average at 0.84. TTM interest coverage at 66.16 vs. prior-TTM interest coverage at 39.45. According to RiskMetrics, the company has "low risk" in all four corporate governance categories. It's been a rough couple of days for the stock, losing 8.71% over the last week.

2. Verizon Communications Inc. (VZ):
Telecom Services Industry. Market cap of $95.28B. TTM EBITDA/common equity at 0.92 vs. 5-year average at 0.66. TTM interest coverage at 9.05 vs. prior-TTM interest coverage at 5.19. According to RiskMetrics, the company has "low risk" in all four corporate governance categories. It's been a rough couple of days for the stock, losing 6.42% over the last week.

3. United Parcel Service, Inc. (UPS): Air Delivery & Freight Services Industry. Market cap of $61.14B. TTM EBITDA/common equity at 1.03 vs. 5-year average at 0.57. TTM interest coverage at 21.28 vs. prior-TTM interest coverage at 13.08. According to RiskMetrics, the company has "low risk" in all four corporate governance categories. It's been a rough couple of days for the stock, losing 7.84% over the last week.

4. Altria Group Inc. (MO): Cigarettes Industry. Market cap of $50.46B. TTM EBITDA/common equity at 1.39 vs. 5-year average at 0.31. TTM interest coverage at 15.00 vs. prior-TTM interest coverage at 9.09. According to RiskMetrics, the company has "low risk" in all four corporate governance categories. It's been a rough couple of days for the stock, losing 7.59% over the last week.

5. EMC Corporation (EMC):
Data Storage Devices Industry. Market cap of $44.42B. TTM EBITDA/common equity at 0.25 vs. 5-year average at 0.19. TTM interest coverage at 103.89 vs. prior-TTM interest coverage at 41.67. According to RiskMetrics, the company has "low risk" in all four corporate governance categories. It's been a rough couple of days for the stock, losing 13.78% over the last week.

6. American International Group, Inc. (AIG): Property & Casualty Insurance Industry. Market cap of $41.99B. TTM EBITDA/common equity at 0.61 vs. 5-year average at 0.36. TTM interest coverage at 4.37 vs. prior-TTM interest coverage at 2.34. According to RiskMetrics, the company has "low risk" in all four corporate governance categories. It's been a rough couple of days for the stock, losing 21.46% over the last week.

7. Deere & Company (DE):
Farm & Construction Machinery Industry. Market cap of $28.54B. TTM EBITDA/common equity at 0.83 vs. 5-year average at 0.67. TTM interest coverage at 5.82 vs. prior-TTM interest coverage at 2.95. According to RiskMetrics, the company has "low risk" in all four corporate governance categories. It's been a rough couple of days for the stock, losing 11.78% over the last week.

8. CSX Corp. (CSX): Railroads Industry. Market cap of $23.59B. TTM EBITDA/common equity at 0.50 vs. 5-year average at 0.40. TTM interest coverage at 6.13 vs. prior-TTM interest coverage at 4.71. According to RiskMetrics, the company has "low risk" in all four corporate governance categories. It's been a rough couple of days for the stock, losing 8.81% over the last week.

9. Duke Energy Corporation (DUK):
Electric Utilities Industry. Market cap of $22.96B. TTM EBITDA/common equity at 0.22 vs. 5-year average at 0.18. TTM interest coverage at 5.15 vs. prior-TTM interest coverage at 2.47. According to RiskMetrics, the company has "low risk" in all four corporate governance categories. It's been a rough couple of days for the stock, losing 5.17% over the last week.

10. Cardinal Health, Inc. (CAH): Drugs Wholesale Industry. Market cap of $13.49B. TTM EBITDA/common equity at 0.33 vs. 5-year average at 0.22. TTM interest coverage at 16.31 vs. prior-TTM interest coverage at 11.16. According to RiskMetrics, the company has "low risk" in all four corporate governance categories. It's been a rough couple of days for the stock, losing 8.82% over the last week.

*EBITDA/common equity and interest coverage data sourced from Screener.co, RiskMetrics ratings sourced from Yahoo! Finance, all other data sourced from Finviz.

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

Source: 10 Large-Caps With High Profitability Growth and Good Corporate Governance