Although US Firms Take Seven of the Top Slots in BCG’s 2019 Large-Cap Value Creators Ranking, Asian Firms Dominate the Broader Rankings
BOSTON—US companies continue to lead the way among the world’s large-cap value creators, taking 7 of the top 10 spots and 11 of the top 20 for global large-cap companies in the 2019 Value Creators rankings released today by Boston Consulting Group (BCG). This is the 21st annual edition of the rankings, which shed light on patterns and characteristics of the world’s top value creators.
Only 2 of the top 10 large-cap value creators and 5 of the top 20 are based in Asia, reflecting the disproportionate number of North American companies that rank among the largest companies by market capitalization. But a look at performance beyond the top 20 large-cap value creators reveals a much different picture. Among the top 100 performers, 28% are North American and 55% are Asian. Similarly, among the 330 companies that rank in the top 10 in their industry, 29% are North American and 45% are Asian.
"Asian companies are catching up to, and in some cases surpassing, their longer-established US counterparts in value creation,” said Alexander Roos, a BCG senior partner. “We expect that our annual rankings will provide important insights into this trend in the coming years.”
Since 1999, BCG has published annual rankings of the world’s top value-creating companies, measured on the basis of total shareholder return (TSR) over the previous five-year period. To compile the 2019 rankings, BCG analyzed TSR at approximately 2,250 companies globally (slightly more than one-third of them US-based companies) from 2014 through 2018. In addition to providing our large-cap ranking of five-year TSR at the world’s 200 largest companies by market valuation, the 2019 Value Creators rankings offer rankings of the top 10 value creators in each of 33 industry sectors.
TSR measures the combination of share price gains and dividend yield for a company’s stock over a given period. It is the most comprehensive metric of performance in shareholder value creation. Average annual TSR is the amount of TSR that a company delivered, on average, over the five years covered in BCG’s 2019 analysis.
“Many companies ride a wave of success in specific market cycles, but it is extremely rare, and an even greater accomplishment, for a company to deliver strong performance year after year,” said Eric Wick, a BCG senior partner.
The 2019 BCG Value Creators ranking is presented in an online interactive format that allows users to see the TSR performance of the top 50 large-cap companies and other value creators across 33 industries, as well as to review the individual drivers behind each company’s TSR performance.
The 2019 BCG Value Creators rankings can be viewed here.
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