3 BRIC Stocks With Strong Profitability Compared To Peers

Includes: ABEV, STV, YONG
by: Kapitall

Looking to add some exposure to emerging markets? We ran a screen with this idea in mind.

We screened a universe of companies based in the BRIC countries for those stocks with strong profitability compared to industry peers. We measured this as higher gross, operating, and pretax margins than their industry averages by at least 5% on each margin. This indicates that these companies are taking a greater percentage of their revenues as profits, and they also have stronger control over their cost structures.

For an interactive version of this chart, click on the image below. Analyst ratings sourced from Zacks Investment Research.

Tool provided by Kapitall (kapitall.com).

Do you think these stocks are poised to move higher? Use this list as a starting point for your own analysis.

List sorted by difference between pretax margin and industry average.

1. Companhia de Bebidas Das Americas (AMBEV) (ABV): Engages in the production, distribution, and sale of beer, draft beer, carbonated soft drinks, malt, and other non-alcoholic and non-carbonated products in the Americas. Market cap at $116.63B, most recent closing price at $37.39. TTM gross margin at 67.62% vs. industry average at 59.07%. TTM operating margin at 40.13% vs. industry average at 23.5%. TTM pretax margin at 41.31% vs. industry average at 22.66%.

2. China Digital TV Holding Co., Ltd. (STV): Provides conditional access (CA) systems to digital television markets in the People's Republic of China. Market cap at $159.3M, most recent closing price at $2.70. TTM gross margin at 79.09% vs. industry average at 44.66%. TTM operating margin at 43.3% vs. industry average at 29.25%. TTM pretax margin at 47.99% vs. industry average at 29.01%.

3. Yongye International, Inc. (YONG): Engages in the research, development, manufacture, and sale of fulvic acid based liquid and powder nutrient compounds for plants and animals, which are used in the agriculture industry in the People's Republic of China. Market cap at $155.16M, most recent closing price at $3.07. TTM gross margin at 59.63% vs. industry average at 37.64%. TTM operating margin at 27.16% vs. industry average at 17.68%. TTM pretax margin at 29.06% vs. industry average at 16.53%.

*Profitability data sourced from Fidelity, 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.

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