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Gauging a company’s profitability can sometimes be difficult because there are so many measures to choose from. One interesting idea is to compare the profitability margins of a company to its industry peers – companies with higher margins are taking a greater percentage of sales as profits, and they have greater control of their cost structure.

We ran a screen on large-cap stocks that appear undervalued by earnings growth, with PEG below 1. We screened these stocks for those with high profitability, beating their industry peers on gross, operating, and pretax margins.

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 stocks should be trading higher? Use this list as a starting-off point for your own analysis.

List sorted by difference between gross margin and industry.

1. Aetna Inc. (NYSE:AET): Operates as a diversified health care benefits company in the United States. Market cap of $14.51B. PEG at 0.72. TTM gross margin at 28.86% vs. industry gross margin at 21.31%. TTM operating margin at 9.19% vs. industry operating margin at 8.54%. TTM pretax margin at 8.28% vs. industry pretax margin at 6.98%. The stock has had a couple of great days, gaining 5.51% over the last week.

2. Dover Corp. (NYSE:DOV): Manufactures and sells industrial products and components, and consumables. Market cap of $10.35B. PEG at 0.91. TTM gross margin at 41.88% vs. industry gross margin at 32.21%. TTM operating margin at 15.14% vs. industry operating margin at 12.74%. TTM pretax margin at 13.62% vs. industry pretax margin at 10.94%. The stock has had a couple of great days, gaining 5.4% over the last week.

3. JPMorgan Chase & Co. (NYSE:JPM): Provides various financial services worldwide. Market cap of $133.27B. PEG at 0.80. TTM gross margin at 80.51% vs. industry gross margin at 62.31%. TTM operating margin at 48.59% vs. industry operating margin at 40.04%. TTM pretax margin at 25.0% vs. industry pretax margin at 19.39%. The stock has had a couple of great days, gaining 5.98% over the last week.

4. Las Vegas Sands Corp. (NYSE:LVS): Develops, and operates various integrated resort properties primarily in the United States, Macau, and Singapore. Market cap of $31.74B. PEG at 0.70. TTM gross margin at 46.99% vs. industry gross margin at 36.64%. TTM operating margin at 23.75% vs. industry operating margin at 19.28%. TTM pretax margin at 19.82% vs. industry pretax margin at 17.87%. The stock has gained 5.87% over the last year.

5. Tenaris SA (NYSE:TS): Engages in the manufacture and sale of steel pipe products. Market cap of $18.44B. PEG at 0.71. TTM gross margin at 41.26% vs. industry gross margin at 34.89%. TTM operating margin at 18.54% vs. industry operating margin at 18.43%. TTM pretax margin at 19.76% vs. industry pretax margin at 16.0%. The stock has had a couple of great days, gaining 8.55% over the last week.

6. Altera Corp. (NASDAQ:ALTR): Designs, manufactures, and markets programmable logic devices (plds); structured application-specific integrated circuit devices; predefined design building blocks or intellectual-property cores; and associated development tools. Market cap of $12.33B. PEG at 0.99. TTM gross margin at 72.06% vs. industry gross margin at 61.03%. TTM operating margin at 44.11% vs. industry operating margin at 26.63%. TTM pretax margin at 44.07% vs. industry pretax margin at 26.43%. The stock has had a couple of great days, gaining 13.91% over the last week.

7. DIRECTV (NASDAQ:DTV): Provides digital television entertainment in the United States and Latin America. Market cap of $34.94B. PEG at 0.89. TTM gross margin at 49.77% vs. industry gross margin at 42.89%. TTM operating margin at 16.88% vs. industry operating margin at 16.71%. TTM pretax margin at 14.98% vs. industry pretax margin at 12.37%. The stock has gained 9.11% over the last year.

8. Mobile Telesystems OJSC (NYSE:MBT): Provides telecommunications services primarily in the Russian Federation, Ukraine, Uzbekistan, Turkmenistan, Armenia, and Belarus. Market cap of $14.77B. PEG at 0.79. TTM gross margin at 70.45% vs. industry gross margin at 61.56%. TTM operating margin at 22.39% vs. industry operating margin at 21.79%. TTM pretax margin at 17.02% vs. industry pretax margin at 16.0%. The stock has had a couple of great days, gaining 5.3% over the last week.

9. Wells Fargo & Company (NYSE:WFC): Provides retail, commercial, and corporate banking services primarily in the United States. Market cap of $135.81B. PEG at 0.85. TTM gross margin at 82.10% vs. industry gross margin at 72.10%. TTM operating margin at 43.32% vs. industry operating margin at 40.05%. TTM pretax margin at 25.60% vs. industry pretax margin at 23.24%. The stock has gained 1.26% over the last year.

10. VimpelCom Ltd. (NASDAQ:VIP): Operates as an integrated telecommunications services provider, offering voice and data services through a range of wireless, fixed, and broadband technologies. Market cap of $14.81B. PEG at 0.70. TTM gross margin at 69.73% vs. industry gross margin at 61.56%. TTM operating margin at 22.75% vs. industry operating margin at 21.79%. TTM pretax margin at 17.51% vs. industry pretax margin at 16.0%. The stock has had a couple of great days, gaining 9.86% over the last week.

11. SanDisk Corp. (NASDAQ:SNDK): Designs, develops, manufactures, and markets NAND-based flash data storage card products that are used in various consumer electronics products. Market cap of $12.04B. PEG at 0.72. TTM gross margin at 46.96% vs. industry gross margin at 41.92%. TTM operating margin at 28.0% vs. industry operating margin at 24.26%. TTM pretax margin at 25.98% vs. industry pretax margin at 24.11%. The stock has had a couple of great days, gaining 11.35% over the last week.

12. Limited Brands, Inc. (LTD): Operates as a retailer of women's intimate and other apparel, beauty and personal care products, and accessories in the United States and Canada. Market cap of $12.84B. PEG at 0.93. TTM gross margin at 42.50% vs. industry gross margin at 38.34%. TTM operating margin at 14.26% vs. industry operating margin at 10.11%. TTM pretax margin at 13.29% vs. industry pretax margin at 9.37%. The stock has gained 50.59% over the last year.

13. Discover Financial Services (NYSE:DFS): Operates as a credit card issuer and electronic payment services company primarily in the United States. Market cap of $12.81B. PEG at 0.58. TTM gross margin at 45.97% vs. industry gross margin at 42.40%. TTM operating margin at 44.92% vs. industry operating margin at 41.79%. TTM pretax margin at 39.32% vs. industry pretax margin at 24.11%. The stock has had a couple of great days, gaining 5.48% over the last week.

14. Apple Inc. (NASDAQ:AAPL): Designs, manufactures, and markets personal computers, mobile communication and media devices, and portable digital music players, as well as sells related software, services, peripherals, networking solutions, and third-party digital content and applications worldwide. Market cap of $372.27B. PEG at 0.72. TTM gross margin at 42.15% vs. industry gross margin at 41.91%. TTM operating margin at 31.22% vs. industry operating margin at 24.25%. TTM pretax margin at 31.60% vs. industry pretax margin at 24.11%. The stock has gained 30.14% over the last year.

*Profitability data sourced from Fidelity, all other data sourced from Finviz.

Source: 14 Undervalued Large Caps With Impressive Profitability