The CAPS Screen: 5 Top-Rated Insider-Owned Stocks

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At The Motley Fool, we like companies with a high level of insider ownership. We believe that leaders with large ownership stakes in their companies will have a greater incentive to do what's best for the business. The record appears to bear this theory out, since such companies tend to outperform.

Compare the performance of Garmin (Nasdaq: GRMN) (41% insider-owned) to that of golden-parachute-burdened Home Depot (NYSE: HD) (1% insider-owned). One has been a double over the past five years, while the other has done ... not so well. I’ll let you guess which is which.

With all of this in mind, I used our new CAPS screening tool to look for companies with high insider ownership. Below, you'll find five companies whose insiders hold at least 20% of shares.

They also have:

• Market caps greater than $150 million.
• Five-star ratings, the highest possible, from our CAPS community.

Remember, in the first year for which we have data, five-star companies outperformed with an average return of nearly 28%.

Company	Share Price	Sector	Market Cap
Fuel Tech (Nasdaq: FTEK)	$24.13	Industrial Goods	$542 million
IPG Photonics (Nasdaq: IPGP)	$18.41	Technology	$815 million
Navios Maritime (NYSE: NM)	$10.28	Services	$1.1 billion
Steel Dynamics (Nasdaq: STLD)	$37.77	Basic Materials	$7.1 billion
ShengaTech (Nasdaq: SDTH)	$7.74	Basic Materials	$419 million

Data from Motley Fool CAPS and Yahoo! Finance as of June 10.

Of course, this screen is only a starting point in the research process. Come and join us on Motley Fool CAPS to dig into these companies further. Let our 105,000-strong (and counting) CAPS community help you make better stock selections.

For more Foolery, check out:

• These Stocks Are the New Strong Buys
• The CAPS Screen: 5 Warren Buffett Stocks
• This Just In: Upgrades and Downgrades