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ROE Analysis: Top Companies by Return on Equity

This page analyzes companies with strong Return on Equity (ROE), a key metric for assessing profitability relative to shareholder equity. The shortlist highlights firms that effectively utilize equity to generate profits. Understanding ROE is crucial for investors seeking companies with efficient capital management and consistent returns. This guide explains how ROE is calculated, its significance in financial analysis, and its role in identifying potentially attractive investment opportunities. The screen is timely due to heightened market focus on earnings quality and efficient capital allocation.

Quick Answer This page provides an analysis of companies based on Return on Equity (ROE), a measure of how effectively a company uses shareholders' equity to generate profit. The shortlist comprises firms demonstrating efficient equity use. ROE is calculated as net income divided by average shareholders' equity, indicating the return generated per dollar of equity.
Examples3Screens60Average score88.00Updated2026-04-10Prices as ofOct 26, 2026 session

Figures come from Financial Modeling Prep (FMP). If FMP has no figure for a ticker, a price or fundamental may come from a Yahoo Finance fallback, or a price from an Alpaca fallback. SEC EDGAR is used only for filing links and company identity details (legal name, address), never for figures.

MoonshotScore V2 rates eligible US-listed companies from 0 to 100 against their sector peers on five pillars: Business Quality (weight 26), Financial Safety (weight 20), Valuation (weight 18), Growth Durability (weight 16) and Momentum (weight 12). It reads no news-sentiment or analyst data, and it is not a probability of future returns.

20,000+ US companies analyzed

Understanding Return on Equity (ROE)

Return on Equity (ROE) is a financial ratio that measures a company's profitability relative to shareholders' equity. It indicates how efficiently a company is using investments to generate earnings. A higher ROE suggests that a company is more effective at converting equity financing into profits. ROE is a valuable tool for investors to compare the profitability of companies within the same industry.

Worked Example: These Figures Today

The companies used as examples above, with the current figures behind them. Illustrations of the metric — not a ranking, not a shortlist, and not a recommendation.

Example companies for this topic, listed in the order the guide introduces them — prices, day change and market cap as of the Oct 26, 2026 trading session (FMP quote); P/E and MoonshotScore from our latest stored data. Source: Financial Modeling Prep, Yahoo Finance.
Ticker Company Price Change Market Cap MoonshotScore
AAPL Apple Inc. $343.91 -1.10% $5.0T 89
MSFT Microsoft Corporation $532.60 +1.54% $4.0T 85
JNJ Johnson & Johnson $266.30 +0.94% $641.1B 90

Shortlist of Companies with High ROE

The shortlist includes:
“MoonshotScore rates a US-listed stock 0 to 100 using five sector-relative pillars. Higher means stronger numbers across business quality, safety, valuation, growth and momentum. Eligible common stocks and ADRs only; funds, ETFs, warrants, units, SPACs, preferreds, and notes carry none. It is built for education and deeper due diligence, not financial advice.”
— Stock Expert AI published methodology (how MoonshotScore works)

Questions worth resolving before acting on the screen

What does Return on Equity (ROE) tell investors?

ROE indicates how effectively a company uses shareholders' investments to generate profits. A high ROE is generally more attractive, but it should be compared against industry peers.

How is Return on Equity (ROE) calculated?

ROE is calculated by dividing a company’s net income by its average shareholders’ equity. The formula provides a percentage that represents the return generated for each dollar of equity.

What are the limitations of using Return on Equity (ROE)?

ROE can be influenced by debt levels; high debt can inflate ROE. It's important to consider a company's capital structure and compare ROE within the same industry.

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Stock Expert AI provides data and analysis tools for educational purposes. This is not financial advice. Past performance does not guarantee future results. Always consult a qualified financial advisor before making investment decisions. Figures come from Financial Modeling Prep (FMP). If FMP has no figure for a ticker, a price or fundamental may come from a Yahoo Finance fallback, or a price from an Alpaca fallback. SEC EDGAR is used only for filing links and company identity details (legal name, address), never for figures.