Yahoo Finance 30 Most Profitable Companies with Highest Margins in the World
In this article, we will be taking a look at the 30 Most Profitable Companies with Highest Margins in the World. To learn about other Most Profitable Companies with Highest Margins in the World, you can go directly to the 5 Most Profitable Companies with Highest Margins in the World.
In today's competitive global marketplace, profitability and margins are key indicators of a company's success and financial health. Among the myriad of businesses worldwide, certain companies stand out for their exceptional ability to generate substantial profits while maintaining high profit margins. These entities exemplify strategic prowess, operational efficiency, and market dominance, allowing them to consistently outperform their peers and deliver significant returns to shareholders. From technology giants pioneering innovation to established players in traditional industries, the landscape of the most profitable companies with the highest margins offers valuable insights into the factors driving economic prosperity and sustainable growth on a global scale.
A recent study analyzing the 2023 Fortune 500 companies reveals a remarkable accumulation of profit, amounting to a colossal $2.9 trillion on a global scale; the top 10 companies alone accounted for $689.8 billion, comprising of a significant 24% share of the total. Remarkably, each company within this group boasts an impressive average profit of $69 billion. Saudi Aramco, Apple, and Microsoft emerged as the most profitable, leading the pack with annual profits of $159.1 billion, $99.8 billion, and $72.7 billion, respectively, according to Business Review. Further insights from the research conducted by Grow and Convert shed light on the dominant sectors, with Energy, Financials, and Technology collectively contributing 63% of the USD 2.9 trillion global profit in 2023. This trio of sectors amassed a massive $1.8 trillion in profits, solidifying their status as the most profitable among the world's largest companies. According to NYU Stern, the financial sector has come out as the most profitable sector with banks reporting gross profits of almost 100%. The net income for the same sector lies around 30%. Followed by financials, is the oil and gas industry with net profits nearing 28.26% and gross margins of 58.75%. It is no surprise that the technology sector has some of the highest gross margins of around 52.38%, when technology companies like Apple, Microsoft and Alphabet reported profits per day of $157,290,411, $121,317,808, and $110,326,027 respectively in 2021, as given in Tipalti.
In the dynamic landscape of global corporate giants, the United States and China emerge as titans, each housing a near-equal number of companies on the Fortune 500 list, with revenues totaling $13 trillion and $11.2 trillion, respectively, according to Business Review. Despite this similarity, the U.S. stands out, with its 136 companies generating a staggering $1.1 trillion in profit, representing 37.56% of the total global profit. China closely follows, with 135 companies contributing $528 billion, comprising just under half of the U.S.'s global profit pool at 18.22%. The combined force of the U.S. and China stands out, jointly accounting for $1.6 trillion (56%) of the total profit, surpassing all other countries combined, which contribute $1.3 trillion (44%) in total.
To dig deeper, we will now be discussing 30 Most Profitable Companies with Highest Margins in the World.
Aerial view of a city's skyline dotted with tall office buildings, symbolizing the success of the Real Estate finance companies.
Methodology
For our list of 30 Most Profitable Companies with Highest Margins in the World, we began by filtering companies based on their market capitalization, focusing on those with a market cap of $10 billion and above. Subsequently, we ranked these companies according to their Trailing Twelve Months (TTM) net profit margins. By employing this methodical approach, we have compiled a list of the 30 Most Profitable Companies with Highest Margins in the World, presented in ascending order.
By the way, Insider Monkey is an investing website that tracks the movements of corporate insiders and hedge funds. By using a similar consensus approach, we identify the best stock picks of more than 900 hedge funds investing in US stocks. The top 10 consensus stock picks of hedge funds outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here). Whether you are a beginner investor or professional one looking for the best stocks to buy, you can benefit from the wisdom of hedge funds and corporate insiders.
30. Texas Instruments Incorporated (NASDAQ:TXN)
Profit Margin: 37.16%
We are getting our list of 30 Most Profitable Companies with Highest Margins in the World started with Texas Instruments. Texas Instruments Incorporated (NASDAQ:TXN) is a big player in the semiconductor industry. They design, make, and sell semiconductors to electronics makers all over the world.
In 2023, Texas Instruments Incorporated (NASDAQ:TXN) reported revenue of $17.52 billion, which was down by about 12.53% from the previous year's revenue of $20.03 billion. Their earnings for the same period were $6.51 billion.
29. Diamondback Energy, Inc. (NASDAQ:FANG)
Profit Margin: 37.36%
Diamondback Energy, Inc. (NASDAQ:FANG) is an independent oil and natural gas company focused on operations in the Permian Basin of West Texas. Their main services include acquiring, developing, exploring, and tapping into unconventional oil and gas reserves.
In 2023, Diamondback Energy, Inc. (NASDAQ:FANG), reported revenue of $8.41 billion. This marked a decrease of -12.77% compared to the previous year's revenue of $9.64 billion.
28. Taiwan Semiconductor Mfg. Co. (NYSE:TSM)
Profit Margin: 38.79%
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), specializes in manufacturing, packaging, testing, and selling integrated circuits and semiconductor devices. Taiwan Semiconductor Manufacturing Company (NYSE: TSM) is planning on setting up second advanced manufacturing facility in Japan, on the back of the alliance with Sony, the tech giant, and Toyota, the automation market leader . This move could really help boost Japan's semiconductor industry. The overall investment in the facility is worth more than $20 billion, according to CNBC.
27. Thomson Reuters Corporation (NYSE:TRI)
Profit Margin: 39.67%
Thomson Reuters Corporation (NYSE:TRI) is a big player in providing business information services worldwide. They provide services across the Americas, Europe, the Middle East, Africa, and the Asia Pacific.
As of March 2024, Thomson Reuters Corporation (NYSE:TRI) has set aside a whopping $8 billion to invest in the artificial intelligence (AI) sector. Additionally, they're planning to dedicate over $100 million each year to develop their own AI technology, specifically for customers in the legal and accounting field.
26. W. P. Carey Inc. (NYSE:WPC)
Profit Margin: 40.68%
W.P. Carey ranks on number twenty-six on the list of 30 Most Profitable Companies with Highest Margins in the World. W. P. Carey is one of the largest net lease Real Estate Investment Trusts (REITs). They've got a diverse portfolio of top-notch commercial real estate that's crucial for operations. In 2023, the company reported revenue of $1.74 billion, which was a substantial increase of 18% compared to the previous year's $1.48 billion.
25. Johnson & Johnson (NYSE:JNJ)
Profit Margin: 41.28%
Johnson & Johnson (NYSE:JNJ) researches, develops, manufactures, and sells various products in the healthcare field worldwide. In March 2024, they teamed up with Nvidia through their subsidiary Johnson & Johnson MedTech (NYSE:JNJ). Their goal is to work on new artificial intelligence applications for surgery. The partnership aims to explore how AI can analyze surgical video on a large scale and automate some of the time-consuming documentation tasks following a procedure.
24. AerCap Holdings N.V (NYSE:AER)
Profit Margin: 41.37%
AerCap Holdings N.V. (NYSE:AER) specializes in the lease, financing, sale, and management of commercial flight equipment. The delivery of the initial Airbus A330neo aircraft to Corsair S.A was announced on March 13, 2024. This delivery marks the first of four aircraft scheduled for delivery to Corsair, with the remaining three expected to be delivered throughout 2024.
23. United Therapeutics Corporation (NASDAQ:UTHR)
Profit Margin: 42.31%
United Therapeutics Corporation (NASDAQ:UTHR) is a biotech firm that is focused on developing and commercializing products. It is aimed at meeting the medical needs of patients with chronic and life-threatening diseases. Just recently, on March 25, 2024, their Board of Directors gave the green light to buy back up to $1 billion worth of their own common stock. This buyback plan is in addition to their plan to pay off $400 million of their revolving credit facility in 2024. They've already started by paying down $100 million in the first quarter of 2024.
22. Public Storage (NYSE:PSA)
Profit Margin: 43.14%
Public Storage (NYSE:PSA) is a prominent member of the S&P 500 and FT Global 500. It operates as a Real Estate Investment Trust (REIT) specializing in self-storage facilities. In 2023, Public Storage (NYSE:PSA) reported revenue of $4.52 billion, while it had a revenue of $4.18 billion previous year. However, earnings for the same period experienced a notable decrease, falling by $2.2 billion to $1.9 billion.
21. Joint Stock Company Kaspi.kz (NASDAQ:KSPI)
Profit Margin: 43.97%
Joint Stock Company Kaspi.kz (NASDAQ:KSPI) offers a diverse range of payments, marketplace, and fintech solutions in Republic of Kazakhstan. In 2023, Joint Stock Company Kaspi.kz (NASDAQ:KSPI) reported revenue of $4.32 billion. With this, the company demonstrated a substantial increase of 50.60% compared to the previous year's $2.87 billion.
20. Mastercard Incorporated (NYSE:MA)
Profit Margin: 44.61%
Mastercard Incorporated (NYSE:MA) is on number twentieth on our list of 30 Most Profitable Companies with Highest Margins in the World. It operates as a leading technology company specializing in transaction processing and offering a wide range of payment-related products and services globally. On March 26, 2024. Alongside Visa, Mastercard (NYSE:MA) reached a whopping $30 billion settlement. Their goal here is to limit credit and debit card fees for merchants. This could potentially mean savings for consumers. This agreement, if given the go-ahead by the court, would put an end to legal claims dating back to 2005. It's shaping up to be one of the biggest settlements in US history.
19. Brookfield Asset Management Inc. (NYSE:BAM)
Profit Margin: 45.27%
Brookfield Asset Management (NYSE:BAM) is a leading real estate investment firm that specializes in alternative asset management services. In 2023, Brookfield Asset Management Inc. (NYSE:BAM) reported revenue of $4.06 billion. This marked an increase of 11.99% compared to the previous year's $3.63 billion.
18. MSCI Inc. (NYSE:MSCI)
Profit Margin: 45.42%
MSCI Inc. (NYSE:MSCI) and its subsidiaries offer important decision support tools and solutions tailored for the global investment community. These services are essential to effectively manage investment processes. In 2023, MSCI Inc. (NYSE:MSCI) recorded revenue of $2.53 billion. Earnings for the same period were $1.15 billion.
17. East West Bancorp (NASDAQ:EWBC)
Profit Margin: 46.77%
East West Bancorp, Inc. (NASDAQ:EWBC) serves as the bank holding company for East West Bank. The company delivers a comprehensive suite of personal and commercial banking services to businesses and individuals across the United States.
In 2023, East West Bancorp, Inc. (NASDAQ:EWBC) reported revenue of $2.48 billion, showing a growth of 9.31% compared to the previous year's $2.27 billion. Earnings for the same period amounted to $1.16 billion.
16. Royalty Pharma (NASDAQ:RPRX)
Profit Margin: 48.20%
Royalty Pharma plc purchases biopharmaceutical royalties. They also support innovations within the biopharmaceutical sector in the United States. In 2023, Royalty Pharma reported revenue of $2.355 billion. The company showed a growth of 5.24% compared to the previous year's revenue of $2.24 billion.
15. Airbnb, Inc. (NASDAQ:ABNB)
Profit Margin: 48.32%
Airbnb, Inc. is a platform that helps hosts offer stays and experiences to guests worldwide. This happens via online platforms and mobile devices. It allows them to book various accommodations and experiences. In 2023, Airbnb's revenue amounted to $9.92 billion, whereas the previous year's revenue was $8.40 billion. Airbnb ranks at number fifteen on the list of 30 Most Profitable Companies with Highest Margins in the World.
14. Cheniere Energy, Inc. (NYSE:LNG)
Profit Margin: 48.45%
Cheniere Energy, Inc. (NYSE:LNG) is a U.S based energy company. It mainly focuses on liquefied natural gas (LNG) related businesses. The company owns and operates two major LNG terminals, namely the Sabine Pass LNG terminal and the Corpus Christi LNG terminal.
In 2023, Cheniere Energy, Inc. (NYSE:LNG) reported revenue of $20.39 billion. This reflected a decrease of -38.99% compared to the previous year's revenue of $33.43 billion.
13. NVIDIA (NASDAQ:NVDA)
Profit Margin: 48.85%
NVIDIA Corporation (NASDAQ:NVDA) is known for its graphics, compute, and networking solutions worldwide. It serves markets in the United States, Taiwan, China, Hong Kong, and other international regions. In 2023, NVIDIA (NASDAQ:NVDA) reported revenue of $60.9 billion. Earnings for the same period were $29.76 billion.
12. Gaming and Leisure Properties (NASDAQ:GLPI)
Profit Margin: 50.98%
Gaming and Leisure Properties, Inc. (NASDAQ:GLPI) specializes in acquiring, financing, and owning real estate properties for gaming operators. In February 2024, Gaming and Leisure Properties (NASDAQ:GLPI) acquired the real estate assets of Tioga Downs Casino Resort for $175 million. Additionally, they entered into an initial 30-year master lease agreement.
11. Wheaton Precious Metals Corp. (NYSE:WPM)
Profit Margin: 52.92%
Wheaton Precious Metals Corp. (NYSE:WPM) mainly sells gold, silver, palladium, and cobalt deposits. In 2023, Wheaton Precious Metals (NYSE:WPM) revenue decreased to $1.016 billion. Revenue in the previous year was $1.07 billion, hence the company saw a decline of 4.60%.
10. Banco de Chile (NYSE:BCH)
Profit Margin: 52.95%
Banco de Chile (NYSE:BCH) and its subsidiaries offer various banking services to customers in Chile. In the third quarter of 2023, net revenues declined 12.4% to $715.77 million, whereas net income dropped to $272.91 million with a decline of 23.4% from last year.
9. Visa Inc. (NYSE:V)
Profit Margin: 53.92%
Visa Inc. (NYSE:V) is a prominent payment technology company operating globally, including in the United States. In 2023, it reported a revenue of $32.7 billion, a significant increase of 11.41% from the previous year's $29.31 billion. The company's earnings amounted to $17.27 billion. With a vast network processing over 150 million transactions daily and acceptance at over 44 million merchant locations, Visa Inc. (NYSE:V) boasts over 2.9 billion cards issued worldwide.
8. VeriSign, Inc. (NASDAQ:VRSN)
Profit Margin: 54.76%
VeriSign, Inc. (NASDAQ:VRSN) focuses on domain name registry services and internet infrastructure. In 2023, VeriSign, Inc. (NASDAQ:VRSN) had a revenue of $1.49 billion, showing a 4.79% increase from the previous year's $1.42 billion.
7. CME Group Inc. (NASDAQ:CME)
Profit Margin: 57.10%
In early March 2024, CME Group Inc. (NASDAQ:CME) announced plans to apply for clearing US Treasuries. This move aims to secure a major share of the global bond market. It's notable as CME (NASDAQ:CME) would be the first exchange company to do so publicly. The CEO emphasized the strategic importance of entering the world's largest bond market. The application is expected to be submitted within the year.
6. Ares Capital Corporation (NASDAQ:ARCC)
Profit Margin: 58.22%
Sixth on our list of 30 Most Profitable Companies with Highest Margins in the World is Ares Capital. Ares Capital Corporation (NASDAQ:ARCC) is a business development company. They specialize in acquisition, recapitalization, and various financing transactions for middle market companies. In 2023, Ares Capital (NASDAQ:ARCC) reported revenue of $2.61 billion. This marked a notable increase of 24.71% compared to the previous year's $2.10 billion.
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Disclosure: None. 30 Most Profitable Companies with Highest Margins in the World is originally published on Insider Monkey.
