It's also important that the reader understands that the primary attributes that each of these 10 research candidates have in common is fair valuation coupled with a higher
yield than the average company.
On the other hand, when investing at sound valuations, utility stocks do tend to produce significantly more cumulative dividend
income than the average company.
This ability to generate returns on each new dollar of capital they invest at rates of up to 10x better
than the average company while growing at rates approaching 3x the average public company makes these businesses very valuable.
Since the S&P 500 is made up of a changing mix of companies, it is possible that the companies that make up the S&P 500 today deserve higher PE
ratios than the average company that made up the S&P 500 over the past 60 years.
Those investments in employee well - being may contribute to Bain & Company's finding that companies including Apple, Netflix, and Google are 40 percent more
productive than the average company.
Furthermore, each candidate had to show performance that was significantly
greater than the average company (the S&P 500) over the past decade or during the timeframe measured (note on the annualized performance column that several of the companies did not possess a full 11 - year track record).
In Reckitt Benckiser's case, it is still quite attractively valued, and is much more
attractive than the average company, with a Stock Screen rank of just 37 out of over 160 companies.
The report continues: «Top performing companies [companies that surpassed 2015 revenue projections] also offer more of a compensation
mix than average companies.
Our inference is that a smaller share of complaints versus a larger share of business means the company's doing comparatively
better than an average company - a better measure than just focusing on the number of complaints.