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Companies are valued at more than just their buildings and inventories – management teams also go into company valuations, and how well a company is run has big implications to its stock performance.

One way to evaluate this is by looking at the corporate governance policies of the company, such as its board composition and shareholder rights.

Institutional Shareholder Services (ISS) 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 stocks trading under $5 for those that received “low risk” ratings on all four corporate governance categories from ISS.

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 point for your own analysis.

List sorted by price.

1. Amkor Technology, Inc. (AMKR): Provides outsourced semiconductor packaging and test services in the United States and internationally. Market cap of $813.36M. Price (as of market close on 11/21) at $4.49. According to ISS, the company has "low concern" in all corporate governance categories. This is a risky stock that is significantly more volatile than the overall market (beta = 2.24). Might be undervalued at current levels, with a PEG ratio at 0.94, and P/FCF ratio at 14. The stock is a short squeeze candidate, with a short float at 18.31% (equivalent to 5.71 days of average volume). It's been a rough couple of days for the stock, losing 6.07% over the last week.

2. Tenet Healthcare Corp. (THC): Operates acute care hospitals and related health care facilities. Market cap of $1.87B. Price (as of market close on 11/21) at $4.31. According to ISS, the company has "low concern" in all corporate governance categories. This is a risky stock that is significantly more volatile than the overall market (beta = 2.26). The stock is currently stuck in a downtrend, trading 13.18% below its SMA20, 6.46% below its SMA50, and 26.77% below its SMA200. It's been a rough couple of days for the stock, losing 15.98% over the last week.

3. EnergySolutions, Inc (ES): Provides technology-based nuclear services to government and commercial customers primarily in the United States and the United Kingdom. Market cap of $303.11M. Price (as of market close on 11/21) at $3.41. According to ISS, the company has "low concern" in all corporate governance categories. The stock is a short squeeze candidate, with a short float at 7.43% (equivalent to 7.15 days of average volume). It's been a rough couple of days for the stock, losing 7.34% over the last week.

4. PLX Technology Inc. (PLXT): Designs, develops, manufactures, and sells integrated circuits. Market cap of $139.44M. Price (as of market close on 11/21) at $3.13. According to ISS, the company has "low concern" in all corporate governance categories. The stock is a short squeeze candidate, with a short float at 5.55% (equivalent to 15.3 days of average volume). The stock has gained 1.29% over the last year.

5. Standard Pacific Corp. (SPF): Operates as a diversified builder of single-family attached and detached homes in the United States. Market cap of $585.49M. Price (as of market close on 11/21) at $2.95. According to ISS, the company has "low concern" in all corporate governance categories. This is a risky stock that is significantly more volatile than the overall market (beta = 2.24). The stock is a short squeeze candidate, with a short float at 9.07% (equivalent to 8.52 days of average volume). The stock has lost 23.18% over the last year.

6. The Standard Register Company (SR): Provides communications management and execution solutions to healthcare, industrial, financial services, and commercial business markets. Market cap of $72.43M. Price (as of market close on 11/21) at $2.49. According to ISS, the company has "low concern" in all corporate governance categories. The stock has lost 15.88% over the last year.

7. Gray Television Inc. (GTN): Operates as a television broadcast company in the United States. Market cap of $97.16M. Price (as of market close on 11/21) at $1.70. According to ISS, the company has "low concern" in all corporate governance categories. This is a risky stock that is significantly more volatile than the overall market (beta = 2.93). The stock is a short squeeze candidate, with a short float at 7.68% (equivalent to 37.12 days of average volume). It's been a rough couple of days for the stock, losing 5.56% over the last week.

8. Furniture Brands International Inc. (FBN): Designs, manufactures, sources, and retails home furnishings. Market cap of $57.16M. Price (as of market close on 11/21) at $1.03. According to ISS, the company has "low concern" in all corporate governance categories. This is a risky stock that is significantly more volatile than the overall market (beta = 2.5). The stock is a short squeeze candidate, with a short float at 7.21% (equivalent to 9.66 days of average volume). It's been a rough couple of days for the stock, losing 11.21% over the last week.

*ISS ratings sourced from Yahoo! Finance, all other data sourced from Finviz.

Source: 8 Stocks Under $5 With Strong Corporate Governance Policies