Who wins the ROE Wars?
10 Jan 2024

Every year, Professor of Finance at the Stern School of Business at New York University, Aswath Damodaran posts some numbers. In his datasets, he does something really simple but really interesting: he compiles the data of every listed company on every stock exchange in the world, and then he compares their numbers. In one particular comparison, he compares Return on Equity. We find this a fascinating comparison between different sectors of the economy, on which companies in which fields offer investors the best bang for their buck and margins, currently.

For example, the 32 firms engaged in “Hospitals/ Healthcare Facilities” returned 61.97% return on equity (61.94% if accounting for R&D Spend). Compare this with the 35 players in “Software (Internet”, who returned -14.54% (-7.69% if accounting for R&D).

Professor’s Damodaran’s Data is always fun to look at periodically, for what it tells, and what it doesn’t. Both investors and data nerds will benefit from checking out his work HERE.